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Management article
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Reference no. AMSJ02-03
Published by: Allied Business Academies
Published in: "Academy of Marketing Studies Journal", 1998
Length: 12 pages

Abstract

Price deals for consumer nondurables may cause consumers to buy larger than normal quantities of a product (stockpiling). Despite the potential importance of stockpiling to the profitability of both retailers and manufacturers, seemingly little can be said with confidence about the phenomenon. Using household-level grocery purchase data, the study finds that deal proneness, the household's level of product inventory, and the level of price cuts are consistently related to the incidence of stockpiling.

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Abstract

Price deals for consumer nondurables may cause consumers to buy larger than normal quantities of a product (stockpiling). Despite the potential importance of stockpiling to the profitability of both retailers and manufacturers, seemingly little can be said with confidence about the phenomenon. Using household-level grocery purchase data, the study finds that deal proneness, the household's level of product inventory, and the level of price cuts are consistently related to the incidence of stockpiling.

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