Unit Pricing And Electronic Shelf Labels PDF Download

A revolution in retail pricing might be imminent. Dynamic pricing practices, which are usually encountered online, might make their way to stationary retail and challenge the preeminence of fixed prices. Grocery retailers in Germany are currently implementing electronic shelf labels (ESL) to digitally display product prices. This thesis investigates (1)the implications that the introduction of ESL might have on grocery retailers' pricing practices and explores (2)consumer perception of the frequent price changes, associated to dynamic pricing models. An extensive literature review suggested that ESLs enable fast and easy price changes and would therefore complement dynamic pricing practices. The results of a conducted survey imply that consumers have a lack of price knowledge and a tendency to overestimate prices. The results further indicate that price consciousness varies across certain consumer groups, and is especially low for consumers that go grocery shopping in the evening and those, who do not plan their shopping activities. Finally, they indicate that fairness perception of price changes differs significantly between different conditions and product groups. The thesis concludes with implications for theory and practice, as well as future research propositions.