Research Demonstrates That Shop Owners Control Pricing

1 min read
To a certain extent, shop owners are limited when it comes to the pricing in their shops, but a recent thesis by Madelen Lagin, doctoral student from the field of Business Studies, demonstrates that they do have freedom to influence price decisions.

In her recently defended doctoral thesis, Madelen Lagin examines the independence of shop owners when it comes to deciding on prices in grocery retail.

"At the end of the day, it is shop owners who are in charge of their businesses. This may mean that they adjust pricing to the local market even though they may feel that pricing decisions are made elsewhere within an organisation," states Madelen Lagin.

Madelen Lagin worked with three of the biggest grocery retailers in Sweden throughout the course of her thesis work. She was able to note that in some cases, shop owners chose to depart from decisions made elsewhere and this in turn led to Madelen examining how shop owners themselves perceive their capacity to make decisions on pricing.

Madelen Lagin defended her thesis on October 26, 2018 at Örebro University. Her thesis was entitled "“The Price We Pay: The Autonomy of Store Managers in Making Price Decisions: The Case of Grocery Retailing”.

Link to Thesis

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