Competition in Consumer Shopping Experience

  title={Competition in Consumer Shopping Experience},
  author={Ganesh Iyer and Dmitri Kuksov},
  journal={Mark. Sci.},
This paper analyzes the competitive role of retail shopping experience in markets with consumer search costs. We examine how a retailer's advantage in providing consumer shopping experience affects its equilibrium pricing and price advertising strategies. We find that if the consumer valuation of a shopping experience is sufficiently low, its effect on retailer strategy is similar to that of quality, and the retailer with the advantage in shopping experience then deploys higher levels of price… 

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