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Was the economics of information approach wrong all the way? Evidence from German grocery r(E)tailing

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  • Fedoseeva, Svetlana
  • Herrmann, Roland
  • Nickolaus, Katharina

Abstract

The economics of information approach suggests that as online retailing matures, information asymmetry will enforce the reduction of price dispersion online as providers will operate in conditions close to perfect competition. The internet has already become a part of our life and shopping experience. In Germany, over 20% of all electronic, media and leisure-related products are bought online. The role of digital channels is expected to increase further, especially in the latecomer sectors. Grocery retailing is one of such sectors still in the making and the share of online players in retail revenues is expected to grow drastically by 2020. Since online food retailing has not been studied thoroughly and little is known about price levels and dispersion between online and offline markets, our study fills this gap by showing that despite the theoretical predictions price dispersion exist both between online and offline grocery providers as well as across online retailers.

Suggested Citation

  • Fedoseeva, Svetlana & Herrmann, Roland & Nickolaus, Katharina, 2017. "Was the economics of information approach wrong all the way? Evidence from German grocery r(E)tailing," Journal of Business Research, Elsevier, vol. 80(C), pages 63-72.
    • Handle: RePEc:eee:jbrese:v:80:y:2017:i:c:p:63-72
    DOI: 10.1016/j.jbusres.2017.07.006
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    2. Erdmann, Anett & Arilla, Ramón & Ponzoa, José M., 2022. "Search engine optimization: The long-term strategy of keyword choice," Journal of Business Research, Elsevier, vol. 144(C), pages 650-662.
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    4. A. V. Lialina & K. A. Morachevskaya, 2022. "Economic Access to Food and COVID-19: New Challenges for the Russian Exclave," Regional Research of Russia, Springer, vol. 12(3), pages 335-349, September.
    5. Fecher, André & Robbert, Thomas & Roth, Stefan, 2020. "Per piece or per kilogram? Default-unit effects in retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    6. Fedoseeva, Svetlana & Van Droogenbroeck, Ellen, 2024. "Temporary VAT rate cuts and food prices in e-commerce," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    7. Svetlana Fedoseeva & Ellen Van Droogenbroeck, 2023. "Pandemic pricing: Evidence from German grocery e‐commerce," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1139-1156, October.
    8. Erdmann, Anett & Ponzoa, José M., 2021. "Digital inbound marketing: Measuring the economic performance of grocery e-commerce in Europe and the USA," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    9. Hillen, Judith & Fedoseeva, Svetlana, 2021. "E-commerce and the end of price rigidity?," Journal of Business Research, Elsevier, vol. 125(C), pages 63-73.

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