Effects of Impulsive Buying Behaviour According to Multiproduct Monopoly Model

Leszek Morawski and Agnieszka Pugacewicz

Ekonomia journal, 2004, vol. 15

Abstract: In the paper, the impulsive buying phenomenon taking place in big selfservice shops is described. By means of the Multiproduct Monopoly Model that can be applied to the super- and hypermarkets, formal grounds are shown for reduction in prices of basic products below the profitmaximizing level, as a way to induce a growth in demand for other goods in a complementary way linked with the former. In the conclusions, the popular perception is shaken according to which the hypermarkets' activities are aimed at ruining the small local shops. Also, certain effective promotional policies of hypermarkets are suggested.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:eko:ekoeko:15_129

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