Pricing Strategies In The Supermarket

The role of supermarket having control on consumer spending is discussed in four different ways in literature. First, is the pricing strategies that are used in the supermarkets to trick consumers into thinking they are getting a good deal. Article 2 stated that “price is unquestionably one of the most important marketplace cues” (234). Authors have noted “several researchers have argued that a price reduction in coupon form may produce an increase in consumer response beyond that which would result from an equivalent lower no coupon price (235). Another article remarks that “among many dimensions pricing strategy is clearly one of the most important” (Ellickson & Misra, 2008, 811). Literature discusses that pricing in the supermarket is the …show more content…
Literature remarks that for supermarkets to have a consistent number of consumers shopping at their store supermarkets need to encourage them to come back. Literature notes that through providing sales that satisfy customers, and rewarding them for their spending consumers are more than likely to come back (Jonathan,2015). Research also notes that loyalty programs are made to promote long term shopping in a food chain for future shopping. Article remarks “loyalty programs are the key source of information that can be used to manipulate consumer behaviour” (Jonathan, 2015). The article discusses that through the loyalty card supermarkets have access to customer information about their frequent purchases, and items a consumer purchases regularly. This information can be used to influence certain product sales within the store, and “targeted to specific groups of supermarket patrons” (Jonathan,2015). Literature notes that loyalty card programs are a good way to get consumer to be a consistent shopper at a …show more content…
The fourth approach discusses how the more people are tricked into buying, the more they are going to consume. The article discusses how buying big leads consumers to creating habits of buying more. The Article states “If you are used to buying a 6 pack a week but now buy a 12 pack because that 's the current size you are probably going to start drinking 12 cans a week” (50 Supermarket Tricks You Still Fall For, 2016). With consistent sale promotions on bulk items consumers get use to buying more, and therefore lead them to consume more because of the habits they have created. The article also discusses that customers only remember the price of three items (50 Supermarket Tricks You Still Fall For, 2016). Those items include milk, bread, and eggs. When customers are shopping for these three items they do not care if they are getting a good deal or not as they are