Deborah Fowler and Richard Clodfelter
Past research has shown that consumers believe there is a strong relationship between price and quality; they also believe there is a strong relationship between brand and…
Abstract
Past research has shown that consumers believe there is a strong relationship between price and quality; they also believe there is a strong relationship between brand and quality. Therefore, when comparing similar pieces of apparel, items with a designer brand or a higher price are perceived, by most customers, to be of higher quality. The purpose of this study was to compare the pricing and quality of identical designer merchandise sold in department stores and manufacturers’ outlet stores. The researchers found no significant differences in the quality of apparel sold in the two retail formats; however, there was a significant difference in the price. The department store merchandise was 31 per cent higher in price than the outlet store merchandise.
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This study examined the pricing accuracy at retail stores using scanners. Reports from weights and measures inspectors in nine states were analyzed over a four‐year period…
Abstract
This study examined the pricing accuracy at retail stores using scanners. Reports from weights and measures inspectors in nine states were analyzed over a four‐year period. Findings are reported on the number of pricing errors, the number and percentage of overcharges, and the number and percentage of undercharges. The results revealed an error rate of 3.86 percent. Undercharges represented 2.21 percent of the total errors, while overcharges represented 1.65 percent. In addition, the research found that error rates declined over the four‐year period. The implications of these findings for retailers and consumers are discussed.
In recent years there have been many inquiries and studies by government agencies, media reporters, and academic institutions about pricing accuracy at retail stores that use…
Abstract
In recent years there have been many inquiries and studies by government agencies, media reporters, and academic institutions about pricing accuracy at retail stores that use scanners. Some of these reports have even accused retailers of using scanners to intentionally overcharge customers. This study is based on checking 146,518 items in over 2,000 stores in nine states. Analysis of these data found a price accuracy rate of 96.13 per cent with undercharges occurring more frequently than overcharges. In addition, there was a statistically significant difference between pricing accuracy at grocery stores and other retail stores. Grocery stores recorded a higher accuracy level. There is still room for improvement. Only 58 per cent of the stores inspected reached a 98 per cent pricing accuracy standard recommended by the National Conference of Weights and Measures.
The research paper examines the commercial evolution of retail tenants within the UK factory outlet sector. The research aims to identify the key characteristics of…
Abstract
Purpose
The research paper examines the commercial evolution of retail tenants within the UK factory outlet sector. The research aims to identify the key characteristics of commercialisation and the resulting strategic positions occupied by tenants.
Design/methodology/approach
The paucity of research surrounding the research objectives necessitated exploratory research based on 32 in‐depth interviews conducted with factory outlet tenants, managers and owners.
Findings
The research presents four tenant segments used to analyse commercial evolution. Although many tenants are initially pushed into the channel to solve a physical stock problem they invariably increase their level of commercialisation as they apply the experience curve, economies of scale and opportunism. Ultimately, the key to commercialisation lies in the ability of a factory outlet tenant to make adjustments to their retail business model, through sales productivities and improved cost ratios. The single biggest adjustment lies in the potential of made for outlet merchandise which secures both product continuity and enhanced margin.
Originality/value
The research provides a conceptual framework for evaluating the relevance of current factory outlet leasing and performance management programmes. Practical application of the framework will require a correlation to be established between the stages of commercialisation and actual sales performance across a wider sample of tenants. The finding provide possible stepping stones to further research within the sector, not least the evolutionary pattern of factory outlet tenants across Europe. The findings provoke many questions related to the role of outlets within a tenant's overall multi‐channel distribution strategy. The sophistication of certain tenants' outlet business models and the high level of integration across channel of distribution suggest factory outlet centres are becoming increasingly accepted as part of mainstream growth strategies.