Grocery Retailers Need Not Fear 'Cherry Pickers'

Sep 19, 2007
Grocery Retailers Need Not Fear 'Cherry Pickers'
Sale shoppers don´t hurt grocery stores´ bottom lines, according to a study conducted by marketing professor Debabrata Talukdar.

"Extreme cherry pickers," grocery shoppers who buy only sale items and nothing else, do not harm retailer profits significantly as generally is believed, according to a forthcoming study in the Journal of Marketing Research.

The study by Debabrata (Debu) Talukdar, associate professor of marketing in the University at Buffalo School of Management, K. Sudhir, professor of marketing at the Yale School of Management, and Dinesh K. Gauri, assistant professor of marketing in Syracuse University's Whitman School of Business, explored several variations of cherry picking to determine how retailer profits and consumer savings were impacted.

Extreme cherry pickers barely affected profits, the study found.

"Grocery retailers' fear of extreme cherry pickers is overblown," says UB's Talukdar. "Extreme cherry pickers make up only 1.2 percent of grocery store customers and they only reduce profits less than one percent."

It is a common practice for grocery stores to put certain items on sale in order to entice customers to shop at their stores, with the assumption that customers will buy others items once they are there.

Some cherry-picking shoppers buy sale items at only one store over a period of time, while others visit different stores across an area to buy sales items.

The researchers found that cherry pickers indeed saved more money than shoppers who were not actively searching for promotions. Store-loyal cherry pickers obtained 68 percent of potential savings in the marketplace. Cross-store cherry pickers over time obtained 66 percent of potential savings. Extreme cherry pickers obtained 76 percent of potential savings.

Even shoppers who were not searching for promotions were able to capture 54 percent of potential savings by sheer chance, the study found.

An expert on product marketing and shopping behaviors, Talukdar's next study will focus on supermarket retailers' product assortment.

Source: University at Buffalo

Explore further: Best of Last Week–Can space travel faster than light, another planet behind the Sun and should we allow head transplants

add to favorites email to friend print save as pdf

Related Stories

Luring deer away from livestock feed with fall cover crops

19 minutes ago

Fall cover crops, such as clover, turnips and peas, can provide nutrient-rich winter forage and help lure hungry deer away from hay and other stored livestock feed, according to Distinguished Professor Jonathan ...

Why a latte is less likely to spill than a coffee

47 minutes ago

Carrying a full cup of coffee from the kitchen to the dining room can be precarious for a sleepy-eyed caffeine addict who might accidentally send a wave of java sloshing over the rim. But add a bit of foam ...

Recommended for you

Bribery 'hits 1.6 billion people a year'

Feb 27, 2015

A total of 1.6 billion people worldwide – nearly a quarter of the global population – are forced to pay bribes to gain access to everyday public services, according to a new book by academics at the Universities of Birmingham ...

How music listening programmes can be easily fooled

Feb 26, 2015

For well over two decades, researchers have sought to build music listening software that can address the deluge of music growing faster than our Spotify-spoilt appetites. From software that can tell you ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.