VIJ Digital library
Articles

Regional Variations in US Grocery Prices: Causes and Consumer Responses

Published 2024-06-01

Keywords

  • Regional grocery prices, consumer behavior, supply chain issues, local economic conditions, retail competition, price discrepancies, grocery shopping habits, local markets, alternative food sources, price comparison strategies

Abstract

This research article provides an in-depth analysis of the regional differences in grocery prices across the United States and examines how these variations influence consumer behavior. The study identifies and evaluates several key factors contributing to price discrepancies, including supply chain issues, local economic conditions, and the level of competition among retailers. By utilizing a combination of quantitative price data from national and local grocery retailers and qualitative insights from consumer surveys, the research offers a comprehensive understanding of the underlying causes of regional price variations.

Significant findings reveal that regions with frequent supply chain disruptions, such as the West Coast, often experience higher grocery prices due to logistical challenges and increased transportation costs. Conversely, areas with robust retail competition, like the Midwest, benefit from lower prices driven by competitive market forces. Local economic conditions also play a crucial role, with economically depressed regions seeing higher prices as stores compensate for lower sales volumes.

The study further explores how consumers adapt their shopping habits in response to these regional price differences. It highlights the growing reliance on digital tools and apps for price comparisons, especiallkly in high-cost areas. Consumers also tend to shift towards discount stores and bulk purchasing to manage their grocery budgets. In regions with higher grocery prices, there is a noticeable trend towards purchasing from local farmers' markets and co-operatives, which offer fresh produce at competitive prices. Additionally, some consumers adjust their dietary choices to focus on more affordable food items, such as reducing meat consumption and increasing the intake of staple foods.

This research underscores the complexity of regional grocery pricing and its significant impact on consumer behavior. By understanding these dynamics, policymakers can develop strategies to improve supply chain efficiency, foster retail competition, and support local markets, ultimately ensuring more equitable access to affordable groceries across the United States.

References

  1. Zhao, Huiliang, et al. "Impact of pricing and product information on consumer buying behavior with customer satisfaction in a mediating role." Frontiers in psychology 12 (2021): 720151.
  2. Kwarteng, Michael Adu, et al. "The influence of price comparison wsebsites on online switching behavior: A consumer empowerment perspective." Conference on e-Business, e-Services and e-Society. Cham: Springer International Publishing, 2020.
  3. Chung, Chanjin, and Samuel L. Myers Jr. "Do the poor pay more for food? An analysis of grocery store availability and food price disparities." Journal of consumer affairs 33.2 (1999): 276-296.
  4. Pandya, Sonal S., and Rajkumar Venkatesan. "French roast: consumer response to international conflict—evidence from supermarket scanner data." Review of Economics and Statistics 98.1 (2016): 42-56.
  5. D’Acunto, Francesco, et al. "Exposure to grocery prices and inflation expectations." Journal of Political Economy 129.5 (2021): 1615-1639.
  6. Tuorila, Hely, and Christina Hartmann. "Consumer responses to novel and unfamiliar foods." Current Opinion in Food Science 33 (2020): 1-8.
  7. Ketelsen, Meike, Meike Janssen, and Ulrich Hamm. "Consumers’ response to environmentally-friendly food packaging-A systematic review." Journal of Cleaner Production 254 (2020): 120123.
  8. Colchero, M. Arantxa, et al. "In Mexico, evidence of sustained consumer response two years after implementing a sugar-sweetened beverage tax." Health Affairs 36.3 (2017): 564-571.
  9. Brown, M. E. "Climate change, global food security, and the US food system." (2015).
  10. Aschemann‐Witzel, Jessica, and Stephan Zielke. "Can't buy me green? A review of consumer perceptions of and behavior toward the price of organic food." Journal of Consumer Affairs 51.1 (2017): 211-251.
  11. Chronopoulos, Dimitris K., Marcel Lukas, and John OS Wilson. "Consumer spending responses to the COVID-19 pandemic: An assessment of Great Britain." Available at SSRN 3586723 (2020).
  12. Jiang, Bo, Ming Li, and Ravi Tandon. "Context-aware data aggregation with localized information privacy." 2018 IEEE Conference on Communications and Network Security (CNS). IEEE, 2018.
  13. Laborde, David, Will Martin, and Rob Vos. "Impacts of COVID‐19 on global poverty, food security, and diets: Insights from global model scenario analysis." Agricultural Economics 52.3 (2021): 375-390.
  14. Jiang, Bo, Ming Li, and Ravi Tandon. "Local information privacy and its application to privacy-preserving data aggregation." IEEE Transactions on Dependable and Secure Computing 19.3 (2020): 1918-1935.
  15. DellaVigna, Stefano, and Matthew Gentzkow. "Uniform pricing in us retail chains." The Quarterly Journal of Economics 134.4 (2019): 2011-2084.
  16. Zhang, Wenjing, et al. "Privacy-preserving aggregate mobility data release: An information-theoretic deep reinforcement learning approach." IEEE Transactions on Information Forensics and Security 17 (2022): 849-864.
  17. Baker, Phillip, et al. "Ultra‐processed foods and the nutrition transition: Global, regional and national trends, food systems transformations and political economy drivers." Obesity Reviews 21.12 (2020): e13126.
  18. Aparicio, Diego, Zachary Metzman, and Roberto Rigobon. "The pricing strategies of online grocery retailers." Quantitative Marketing and Economics 22.1 (2024): 1-21.
  19. Wan, Mengting, et al. "Modeling consumer preferences and price sensitivities from large-scale grocery shopping transaction logs." Proceedings of the 26th international conference on world wide web. 2017.
  20. Hallikainen, Heli, et al. "Consequences of personalized product recommendations and price promotions in online grocery shopping." Journal of Retailing and Consumer Services 69 (2022): 103088.
  21. Breugelmans, Els, and Katia Campo. "Cross-channel effects of price promotions: An empirical analysis of the multi-channel grocery retail sector." Journal of Retailing 92.3 (2016): 333-351.
  22. Zheng, Qiujie, et al. "What factors affect Chinese consumers’ online grocery shopping? Product attributes, e-vendor characteristics and consumer perceptions." China Agricultural Economic Review 12.2 (2020): 193-213.
  23. Ajay Chandra. “Privacy-Preserving Data Sharing in Cloud Computing Environments”. Eduzone: International Peer Reviewed/Refereed Multidisciplinary Journal, vol. 13, no. 1, Feb. 2024, pp. 104-11, https://www.eduzonejournal.com/index.php/eiprmj/article/view/557.
  24. Handbury, Jessie, and David E. Weinstein. "Goods prices and availability in cities." The Review of Economic Studies 82.1 (2015): 258-296.
  25. Jiang, Bo, Ming Li, and Ravi Tandon. "Local information privacy with bounded prior." ICC 2019-2019 IEEE International Conference on Communications (ICC). IEEE, 2019.
  26. Bodur, H. Onur, Noreen M. Klein, and Neeraj Arora. "Online price search: Impact of price comparison sites on offline price evaluations." Journal of Retailing 91.1 (2015): 125-139.
  27. Tuorila, Hely, and Christina Hartmann. "Consumer responses to novel and unfamiliar foods." Current Opinion in Food Science 33 (2020): 1-8.
  28. Adeyeri, Toluwani Babatunde. "Blockchain and AI Synergy: Transforming Financial Transactions and Auditing." Blockchain Technology and Distributed Systems 4.1 (2024): 24-44.
  29. Priporas, Constantinos Vasilios, et al. "Technology distraction in Generation Z: The effects on consumer responses, sensory overload, and discomfort." International Journal of Information Management (2024): 102751.
  30. Nadeem, Waqar, and Jari Salo. "Does value co-creation matter? Assessing consumer responses in the sharing economy." Information Technology & People 37.3 (2024): 1279-1304.
  31. Iqbal, Muhammad Waqas, et al. "Consumer response to adjustable price and shelf-life of fresh food products under effective preservation policy." Computers & Industrial Engineering 188 (2024): 109897.
  32. Wang, Lingxiao, Wenying Li, and Yuqing Zheng. "Does the advertising of plant‐based burgers attract meat consumers? The influence of new product advertising on consumer responses." Agribusiness (2024).
  33. Adeyeri, Toluwani Babatunde. "Automating Accounting Processes: How AI is Streamlining Financial Reporting." Journal of Artificial Intelligence Research 4.1 (2024): 72-90.
  34. Chen, Yini, and Ting Chi. "Beyond the storefront: empirical insights into consumers' responses to omnichannel apparel retailers." Marketing Intelligence & Planning 42.2 (2024): 284-303.
  35. Mari, Alex, Andreina Mandelli, and René Algesheimer. "Empathic voice assistants: Enhancing consumer responses in voice commerce." Journal of Business Research 175 (2024): 114566.
  36. Melek, Ceren Gülra, Elena Battini Sönmez, and Songül Varlı. "Datasets and methods of product recognition on grocery shelf images using computer vision and machine learning approaches: An exhaustive literature review." Engineering Applications of Artificial Intelligence 133 (2024): 108452.
  37. Prencipe, Luigi Pio, et al. "Zero-emission vehicle adoption towards sustainable e-grocery last-mile delivery." Research in Transportation Economics 104 (2024): 101429.
  38. Kelly, Lauren. "Supermarket ‘dark jobs’ and rapid grocery delivery: Transformations in labour, technology and logistics." New Media & Society 26.3 (2024): 1227-1248.
  39. Amorim, Pedro, et al. "Customer preferences for delivery service attributes in attended home delivery." Management science (2024).
  40. Mohan Raja Pulicharla, Dr YV. "Neuro-Evolutionary Approaches for Explainable AI (XAI)." Eduzone: International Peer Reviewed/Refereed Multidisciplinary Journal 12.1 (2023): 334-341.
  41. Adeyeri, Toluwani Babatunde. "Enhancing Financial Analysis Through Artificial Intelligence: A Comprehensive Review." Journal of Science & Technology 5.2 (2024): 102-120.