Application of behavioural economy principles in the grocery market

The article presents the contribution to the research of questions concerning the price concepts from the point of view of the behavioural economy. According to this scientific discipline, contrary to the neo-classical economy, price is not always the most important factor determining the consumer&#...

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Main Authors: J. Stávková, L. Stejskal, Z. Procházková
Format: Article
Language:English
Published: Czech Academy of Agricultural Sciences 2009-07-01
Series:Agricultural Economics (AGRICECON)
Subjects:
Online Access:https://agricecon.agriculturejournals.cz/artkey/age-200907-0002_application-of-behavioural-economy-principles-in-the-grocery-market.php
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author J. Stávková
L. Stejskal
Z. Procházková
author_facet J. Stávková
L. Stejskal
Z. Procházková
author_sort J. Stávková
collection DOAJ
description The article presents the contribution to the research of questions concerning the price concepts from the point of view of the behavioural economy. According to this scientific discipline, contrary to the neo-classical economy, price is not always the most important factor determining the consumer's purchase decision. The traditional spheres of behavioural approach to price perception have long been the analyses of the purchase processes of electronics and financial market products. Against this conception, the authors propose their own thesis on the possibilities of the behavioural approach utilization in the grocery market. Foodstuff is specific in many aspects, which is given by the fact that food products very often satisfy the very basic human needs. The thesis is backed up by the results of the primary inquiry of 3 520 respondents which has unveiled the fact that the consumer's price perception of grocery products should be more likely examined by the means of behavioural economy than the classical theory of rational choice (homo oeconomicus). The conducted survey showed that the price is surprisingly the least important attribute of food products. Furthermore, after divisioning the addressed consumers into groups by their age or by the achieved education level, the percentage share of those who answered that price is very important when choosing grocery products was very fluctuating. The traditional neo-classical approach assumes a consistent or eventually increasing importance (in the case we accept the presumption that the consumer's ability to decide rationally increases with a higher education level achieved). All findings of the primary inquiry then showed to be inconsistent with the traditional theory and in the author's opinion, the behavioural research in the field of food markets has proven to be highly relevant.
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spelling doaj.art-4b02cdc8daf0413ea2f1c8713fd15af12023-02-23T03:23:33ZengCzech Academy of Agricultural SciencesAgricultural Economics (AGRICECON)0139-570X1805-92952009-07-0155731432010.17221/52/2009-AGRICECONage-200907-0002Application of behavioural economy principles in the grocery marketJ. Stávková0L. Stejskal1Z. Procházková2Faculty of Business and Economics, Mendel University of Agriculture and Forestry, Brno, Czech RepublicFaculty of Business and Economics, Mendel University of Agriculture and Forestry, Brno, Czech RepublicFaculty of Business and Economics, Mendel University of Agriculture and Forestry, Brno, Czech RepublicThe article presents the contribution to the research of questions concerning the price concepts from the point of view of the behavioural economy. According to this scientific discipline, contrary to the neo-classical economy, price is not always the most important factor determining the consumer's purchase decision. The traditional spheres of behavioural approach to price perception have long been the analyses of the purchase processes of electronics and financial market products. Against this conception, the authors propose their own thesis on the possibilities of the behavioural approach utilization in the grocery market. Foodstuff is specific in many aspects, which is given by the fact that food products very often satisfy the very basic human needs. The thesis is backed up by the results of the primary inquiry of 3 520 respondents which has unveiled the fact that the consumer's price perception of grocery products should be more likely examined by the means of behavioural economy than the classical theory of rational choice (homo oeconomicus). The conducted survey showed that the price is surprisingly the least important attribute of food products. Furthermore, after divisioning the addressed consumers into groups by their age or by the achieved education level, the percentage share of those who answered that price is very important when choosing grocery products was very fluctuating. The traditional neo-classical approach assumes a consistent or eventually increasing importance (in the case we accept the presumption that the consumer's ability to decide rationally increases with a higher education level achieved). All findings of the primary inquiry then showed to be inconsistent with the traditional theory and in the author's opinion, the behavioural research in the field of food markets has proven to be highly relevant.https://agricecon.agriculturejournals.cz/artkey/age-200907-0002_application-of-behavioural-economy-principles-in-the-grocery-market.phpconsumer behaviourfunctions of pricepurchase of groceriesbehavioural economy
spellingShingle J. Stávková
L. Stejskal
Z. Procházková
Application of behavioural economy principles in the grocery market
Agricultural Economics (AGRICECON)
consumer behaviour
functions of price
purchase of groceries
behavioural economy
title Application of behavioural economy principles in the grocery market
title_full Application of behavioural economy principles in the grocery market
title_fullStr Application of behavioural economy principles in the grocery market
title_full_unstemmed Application of behavioural economy principles in the grocery market
title_short Application of behavioural economy principles in the grocery market
title_sort application of behavioural economy principles in the grocery market
topic consumer behaviour
functions of price
purchase of groceries
behavioural economy
url https://agricecon.agriculturejournals.cz/artkey/age-200907-0002_application-of-behavioural-economy-principles-in-the-grocery-market.php
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