Economics at your fingertips  


Dawn Thilmany (), Jennifer L. Grannis and Edward Sparling

No 36157, 2001 Annual Meeting, July 8-11, 2001, Logan, Utah from Western Agricultural Economics Association

Abstract: Conventional supermarkets concentrate on capturing the largest pool of consumers to generate profits from the industry's low margins. Selling to the largest pool of customers means that marketing, promotion, stocking and service decisions are based on the tastes and preferences of an average consumer. Innovators in the grocery industry, recognizing a shift in consumer tastes and preferences, are changing the industry to attract smaller segments of consumers. The theory presented here demonstrates a method to understand the value of product diversification and a model of the gains from providing products that may not have broad appeal to the average customer base. The increase in retail returns through this approach of developing in-store niches lies not in increased single-item purchases of any one consumer, but through the increased number of items purchased (a larger bundle) by an individual on a single shopping trip.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 24
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.22004/ag.econ.36157

Access Statistics for this paper

More papers in 2001 Annual Meeting, July 8-11, 2001, Logan, Utah from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2022-07-28
Handle: RePEc:ags:waealo:36157