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Pricing Errors in the Supermarket Who Pays

Pricing Errors in the Supermarket Who Pays Electronic scanning checkout systems now operate in most NewZealand supermarkets, and threequarters of all grocery products boughtby New Zealand households are optically scanned. With the introductionof optical scanning technology at pointofsale comes the debate onprice accuracy. Based on a sample of 18.129 products bought in 86 NewZealand supermarkets, the level of pricing errors and the monetary valueof pricing errors are examined. Previous research in the USA hassuggested that consumers suspect pricing errors may disadvantage themrather than the retailer. However, the monetary consequences of priceinaccuracy resulted in a net average undercharge to the consumer of 31cents in every NZ100 spent half of this net average underchargeresulted from uncharged goods, that is, goods free to the consumer.Price inaccuracy in the New Zealand supermarket industry isdisadvantaging the supermarket retailer. Extrapolation of the results ofthis research shows that this industry could be losing nearlyNZ18 million per annum from pricing errors. Recommends detectionof pricing errors and greater emphasis on staff training and supervisionfor checkout operators and for those responsible for price changes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Logistics Information Management Emerald Publishing

Pricing Errors in the Supermarket Who Pays

Logistics Information Management , Volume 5 (3): 6 – Mar 1, 1992

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0957-6053
DOI
10.1108/09576059210016261
Publisher site
See Article on Publisher Site

Abstract

Electronic scanning checkout systems now operate in most NewZealand supermarkets, and threequarters of all grocery products boughtby New Zealand households are optically scanned. With the introductionof optical scanning technology at pointofsale comes the debate onprice accuracy. Based on a sample of 18.129 products bought in 86 NewZealand supermarkets, the level of pricing errors and the monetary valueof pricing errors are examined. Previous research in the USA hassuggested that consumers suspect pricing errors may disadvantage themrather than the retailer. However, the monetary consequences of priceinaccuracy resulted in a net average undercharge to the consumer of 31cents in every NZ100 spent half of this net average underchargeresulted from uncharged goods, that is, goods free to the consumer.Price inaccuracy in the New Zealand supermarket industry isdisadvantaging the supermarket retailer. Extrapolation of the results ofthis research shows that this industry could be losing nearlyNZ18 million per annum from pricing errors. Recommends detectionof pricing errors and greater emphasis on staff training and supervisionfor checkout operators and for those responsible for price changes.

Journal

Logistics Information ManagementEmerald Publishing

Published: Mar 1, 1992

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