Consumer Search: Evidence from Path-tracking Data

Fabio Pinna and Stephan Seiler

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We estimate the effect of consumer search on the price of the purchased product in a physical store environment. We implement the analysis using a unique data set obtained from radio frequency identification tags, which are attached to supermarket shopping carts. This technology allows us to record consumers' purchases as well as the time they spent in front of the shelf when contemplating which product to buy, giving us a direct measure of search effort. Controlling for a host of confounding factors, we estimate that an additional minute spent searching lowers price paid by $2.10 which represents 8 percent of average trip-level expenditure.

Keywords: Consumer search; in-store marketing; path data (search for similar items in EconPapers)
JEL-codes: D12 D83 L11 L15 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-com and nep-mkt
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1296

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