Why does a consumer buy from a particular type of store? A study by Yeheskel Bar-Isaac of the University of Toronto and Sandro Shelegia of Barcelona School of Economics finds that it depends on the type of consumer they are.
The study describes "showroomers" as shoppers who research the item they want to buy by going to a physical store to examine it, then buying it elsewhere at a cheaper price. "They know what they want, they already know what that retailer may charge, and they go to stores with more limited or shallow selections in search of a better price," the authors write.
Retailers that offer more choice through a deeper selection tend to keep their prices higher because they know that once a consumer enters the store, its broader offerings will likely help them find the best fit for the item they are searching for, and they will buy there.
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