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The Price We Pay

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The Price We Pay

The Autonomy of Store Managers in Making Price Decisions The Case of Grocery Retailing

av

Madelen Lagin

Akademisk avhandling

Avhandling för ekonomie doktorsexamen i Företagsekonomi, som kommer att försvaras offentligt

Fredagen den 26 Oktorber 2018 kl. 10.00, Hörsal L2, Örebro universitet Opponent: Professor Ulf Johansson

Lunds universitet Lund, Sverige

Örebro universitet Handelshögskolan 701 82 ÖREBRO

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Abstract

Madelen Lagin (2018): The Price We Pay - The Autonomy of Store Manag-ers in Making Price Decisions. Örebro studies in Business 13.

In this dissertation, the store manager’s autonomy in making price deci-sions is explored to further our understanding of this actor. As a result, the store manager’s embeddedness in the manufacturer-retailer-consumer triad provides a more holistic view of the price decisions made in grocery retailing. In both the scientific literature and the grey literature, discus-sions of whom it is who actually makes the price decidiscus-sions within grocery retailing are diverse and point to all three actors in the triad, including the store manager.

Through a theoretical departure in which price decisions and autonomy is discussed, it is possible to explore the store manager’s ability to make price decisions in relation to the manufacturer-retailer-consumer triad. As an embedded actor in the triad, the store managers can, theoretically and speculatively, face restrictions in relation to all actors.

The context in which this dissertation is placed is that of the grocery retail branch in Sweden, where the three largest retail organisations have participated in the dissertation. This dissertation consists of the cover pa-per and five appended papa-pers, where autonomy is discussed from a qual-itative perspective within the frame of a mixed method approach. By look-ing at price decisions from the store manager’s perspective, and his/her freedom in making price decisions, the dissertation contributes to the area of micro-foundations of pricing.

It is concluded that while store managers might not be formally auton-omous in making price decisions, and that connected restrictions, due to the relationship and position of the actors in the original triad are in place, the store managers have enough freedom in relation to the store to implic-itly and operationally influence price decisions. As a result, it is concluded that the possibility to resist decisions by acting as if they are autonomous, store managers become important actors to be taken into account when price decisions are made and evaluated.

Keywords: price decisions, relationships, triad, strategy, tactic, connected

au-tonomy, connected restrictions

Madelen Lagin, Business Administration

References

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