TY - JOUR
T1 - The accuracy of scanned prices
AU - Hardesty, David M.
AU - Goodstein, Ronald C.
AU - Grewal, Dhruv
AU - Miyazaki, Anthony D.
AU - Kopalle, Praveen
PY - 2014/6
Y1 - 2014/6
N2 - Nearly all retailers use price scanning systems to process transactions quickly, and presumably, accurately. Inaccuracies in scanned prices have important implications for retailers in that undercharges may impact retail profitability while overcharges could result in negative consumer perceptions of retailers and continued legal action. Here, we investigate the overall State of accuracy of scanned prices and develop certain empirical generalizations. To do so, we begin with a review of what is known regarding the accuracy of scanned prices and conduct a reanalysis of FTC data and compare the results with those from more recent cross-sectional data from the State of Washington. We then conduct a thorough analysis of a large longitudinal price scanner data set, with 231,760 products screened over a 15-year period. We investigate accuracy across different retailer characteristics, merchandise locations, and promotional activities. Implications of these results for retailers are discussed.
AB - Nearly all retailers use price scanning systems to process transactions quickly, and presumably, accurately. Inaccuracies in scanned prices have important implications for retailers in that undercharges may impact retail profitability while overcharges could result in negative consumer perceptions of retailers and continued legal action. Here, we investigate the overall State of accuracy of scanned prices and develop certain empirical generalizations. To do so, we begin with a review of what is known regarding the accuracy of scanned prices and conduct a reanalysis of FTC data and compare the results with those from more recent cross-sectional data from the State of Washington. We then conduct a thorough analysis of a large longitudinal price scanner data set, with 231,760 products screened over a 15-year period. We investigate accuracy across different retailer characteristics, merchandise locations, and promotional activities. Implications of these results for retailers are discussed.
KW - Empirical generalizations
KW - Federal Trade Commission
KW - Price accuracy
KW - Scanner data
UR - http://www.scopus.com/inward/record.url?scp=84902551162&partnerID=8YFLogxK
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U2 - 10.1016/j.jretai.2014.03.006
DO - 10.1016/j.jretai.2014.03.006
M3 - Article
AN - SCOPUS:84902551162
SN - 0022-4359
VL - 90
SP - 291
EP - 300
JO - Journal of Retailing
JF - Journal of Retailing
IS - 2
ER -