Segmentation of store choice models using stated preferences

1990 ◽  
Vol 69 (1) ◽  
pp. 121-131 ◽  
Author(s):  
Laurence Moore
Keyword(s):  
Choice Models ◽  
Stated Preferences ◽  
Store Choice

Unobserved Heterogeneity in Store Choice Models

Compstat ◽  
2002 ◽  
pp. 611-616
Author(s):  
Ignacio Rodríguez-del-Bosque ◽  
Ana Suárez-Vázquez ◽  
Ignacio Moral-Arce ◽  
Juan Rodríguez-Poo
Keyword(s):  
Unobserved Heterogeneity ◽  
Choice Models ◽  
Store Choice

scholarly journals Spatial Shopping Behavior in a Multi-Channel Environment: A Discrete Choice Model Approach

REGION ◽  
2021 ◽  
Vol 8 (2) ◽  
pp. 1-27
Author(s):  
Thomas Wieland
Keyword(s):  
Transaction Costs ◽  
Travel Time ◽  
Online Shopping ◽  
Location Theory ◽  
Choice Models ◽  
Previous Literature ◽  
Shopping Behavior ◽  
Store Choice ◽  
Retail Location ◽  
The Impact

Spatial impacts of online shopping are discussed frequently in retail geography. Here, online shopping is mostly regarded as a central driver of competition for physical retailing and its locations, such as town centers or malls. Due to its high popularity, cross-channel shopping is sometimes considered to be a support for physical retailing. However, traditional retail location theory does not consider shopping channels other than in-store shopping. Furthermore, although online shopping is far too important to be neglected in examining consumer spatial shopping behavior, there is an obvious lack in the previous literature towards incorporating multi- and cross-channel shopping into store choice models. The present study aims to identify the main drivers of store choice on the basis that both in-store and online shopping alternatives are available, as well as the opportunity for cross-channel shopping. Taking into account previous literature on both physical store choice and multi-channel shopping, hypotheses on the impact of different shopping transaction costs (such as travel time, delivery charges, or uncertainty with respect to the stores' assortment) were derived. Based on a representative consumer survey, real past shopping decisions in three retail sectors (groceries, consumer electronics [CE], and furniture) were collected. The econometric analysis of empirical store choices was performed using a nested logit model which includes both physical and online stores. The results confirm several assumptions of classical retail location theory as well as previous findings from single-firm studies and stated choice experiments on multi-channel shopping behavior. Travel time to physical stores reduces consumer utility and store choice probability, respectively. Consumer sensitivity towards travel time decreases with decreasing purchase frequency of the desired goods. Delivery charges also decrease the likelihood of choosing a store. The impact of cross-channel integration on store choice (assuming the reduction of consumer transaction costs) is considerably lower than expected and differs between retail sectors. While furniture retailers profit from enabling cross-channel shopping, there is no such competitive advantage found for grocery and CE retailers. The positive effect of assortment on condition of diminishing marginal utility is confirmed for grocery stores and CE stores, but not for furniture stores. From a theoretical perspective, this study shows that multi- and cross-channel shopping behavior does not contradict the main thoughts of classical retail location theory. From a practical perspective, the study is a contribution as store choice models play a significant role in both business location planning and governmental land use planning.

Theoretical, methodological and practical issues of choice models

2018 ◽  
Vol 1 (1) ◽  
pp. 21-37
Author(s):  
Bharat P. Bhatta
Keyword(s):  
Discrete Choice ◽  
Model Building ◽  
Estimation Method ◽  
Choice Models ◽  
Discrete Choice Models ◽  
Decision Makers ◽  
Model Formulation ◽  
Random Utility Maximization ◽  
The Relationship ◽  
Method Model

This paper analyzes and synthesizes the fundamentals of discrete choice models. This paper alsodiscusses the basic concept and theory underlying the econometrics of discrete choice, specific choicemodels, estimation method, model building and tests, and applications of discrete choice models. Thiswork highlights the relationship between economic theory and discrete choice models: how economictheory contributes to choice modeling and vice versa. Keywords: Discrete choice models; Random utility maximization; Decision makers; Utility function;Model formulation

Transnational adaptation: changing determinants of grocery store choice of German consumers in London

2016 ◽  
Vol 4 (1) ◽  
pp. 20-40
Author(s):  
Ines Oswald
Keyword(s):  
Urban Areas ◽  
Consumer Behaviour ◽  
Grocery Store ◽  
Grocery Stores ◽  
Retail Sector ◽  
Dynamic Nature ◽  
Store Choice ◽  
Large Numbers ◽  
Consumer Markets ◽  
Complex Matter

This paper investigates grocery store selection among Germans in Greater London compared to native UK residents. Since consumers hold so much power, the grocery retail sector is highly competitive. Additionally, understanding consumer behaviour in urban areas with large numbers of foreign nationals is a complex matter. As internationalisation continues borders are becoming increasingly blurred. Therefore, it is crucial for managers of grocery stores to understand potential cultural differences in terms of store choice. The survey examined the changes, if any, in store choice determinants among Germans living in Greater London compared retrospectively to when they were living in Germany. To provide a comparison, a small group of native UK consumers were also surveyed. The resulting comparison revealed some significant differences and changes in grocery store selection over time. These findings are also likely to be useful for managers in the grocery retail sector when addressing the dynamic nature of transnational mobile and connected consumer markets.

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