'Passivity' A Model of Grocery Retail Price Decision making Practice
Purpose This paper aims to explore the applied context of grocery retail pricing practice to understand how pricing executives approach "regular price" decision making (as opposed to promotional pricing) The study seeks to inductively develop a model of regular price decision making in grocery retailing. Design/methodology/approach The research uses an inductive methodology involving interviews with pricing executives working for grocery retailers that account for approximately 85 per cent of the UK, and 64 per cent of USA, grocery market retail sales. The approach is appropriate given the underdeveloped research insights into regular pricing within food retailers. Findings It is found that regular pricing is undertaken with little sophistication, typically, on the basis of simple, inflexible rules that result in conflicting goals. A typology of three pricing roles was identified, although all share an underdeveloped understanding of the effects of price changes on customer demand and the implicati.