A PYMNTS Company

Reputation and Multiproduct-firm Behavior: Product line and Price Rivalry Among Retailers

By  |  September 9, 2013

Posted by D. Daniel Sokol

Shaoyan Sun and Henry An (both Department of Resource Economics and Environmental Sociology, University of Alberta) have posted Reputation and Multiproduct-firm Behavior: Product line and Price Rivalry Among Retailers

ABSTRACT: The current consumer demand for healthful and safe foods has become a driving force in the food retail market; for example the continued resistance to genetically modified or genetically engineered foods and the growth of organic foods. A considerable number of studies using stated preference method have shown that consumers have a high willingness-to-pay (WTP) to healthful and high-quality food (i.e. Wang et al., 1997). In this situation, when making policy, retailers should also adjust their strategies to meet the changing nature of consumer preference. However, consumers’ stated demands are not always an accurate reflection of their actual demands.