The study by Debabrata (Debu) Talukdar, associate professor of marketing in the University at Buffalo School of Management, K. Sudhir, professor of marketing at the Yale School of Management, and Dinesh K. Gauri, assistant professor of marketing in Syracuse University's Whitman School of Business, explored several variations of cherry picking to determine how retailer profits and consumer savings were impacted.
Extreme cherry pickers barely affected profits, the study found.
"Grocery retailers' fear of extreme cherry pickers is overblown," says UB's Talukdar. "Extreme cherry pickers make up only 1.2 percent of grocery store customers and they only reduce profits less than one percent."
It is a common practice for grocery stores to put certain items on sale in order to entice customers to shop at their stores, with the assumption that customers will buy others items once they are there.
Some cherry-picking shoppers buy sale items at only one store over a period of time, while others visit different stores across an area to buy sales items.
The researchers found that cherry pickers indeed saved more money than shoppers who were not actively searching for promotions. Store-loyal cherry pickers obtained 68 percent of potential savings in the marketplace. Cross-store cherry pickers over time obtained 66 percent of potential savings. Extreme cherry pickers obtained 76 percent of potential savings.
Even shoppers who were not searching for promotions were able to capture 54 percent of potential savings by sheer chance, the study found.
An expert on product marketing and shopping behaviors, Talukdar's next study will focus on supermarket retailers' product assortment.
The Wall Street Journal ranks the UB School of Management ninth in the nation among schools with strong regional recruiting bases. In addition, BusinessWeek ranks the school as one of the country's top 5 business schools for the fastest return on MBA investment, and Forbes cites it as one of the best business schools in the U.S. for the return on investment it provides MBA graduates. For more information about the UB School of Management, visit http://mgt.buffalo.edu.
The University at Buffalo is a premier research-intensive public university, the largest and most comprehensive campus in the State University of New York. UB's more than 27,000 students pursue their academic interests through more than 300 undergraduate, graduate and professional degree programs. Founded in 1846, the University at Buffalo is a member of the Association of American Universities.
Jacqueline Ghosen | EurekAlert!
Smart Data Transformation – Surfing the Big Wave
02.12.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT
Climate change could outpace EPA Lake Champlain protections
18.11.2016 | University of Vermont
Physicists of the University of Würzburg have made an astonishing discovery in a specific type of topological insulators. The effect is due to the structure of the materials used. The researchers have now published their work in the journal Science.
Topological insulators are currently the hot topic in physics according to the newspaper Neue Zürcher Zeitung. Only a few weeks ago, their importance was...
In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.
Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...
Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...
A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.
Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...
In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.
“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...
16.11.2016 | Event News
01.11.2016 | Event News
14.10.2016 | Event News
09.12.2016 | Life Sciences
09.12.2016 | Ecology, The Environment and Conservation
09.12.2016 | Health and Medicine