Public Policy and Shopping Effectiveness: The Case of Item-Price Removal

Abstract

The removal of item prices in scanner equipped grocery stores is an important public policy issue, as it relates to the ability of consumers to engage in effective shopping in the face of decreased price information. This study analyzed the possible role of public policy in this area by investigating the likely impact of item-price removal in scanner-equipped grocery stores. A number of factors that bear on the role of public policy were analyzed, including consumers’ use of price information, their general attitudes toward retailers, and their experience with and attitudes toward scanner technology. Particular emphasis was paid to the likely impact of item-price removal on the shopping effectiveness of the disadvantaged elderly and minorities. The findings of the study point to a number of possible directions for public policy decision making in this area.