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Title: Consumer Time Budgets and Grocery Shopping Behavior

Author(s): Bart Bronnenberg, Tobias Klein and Yan Xu

Publication Date: November 2018

Keyword(s): consumer purchase behavior, Household production, retirement and time use

Programme Area(s): Industrial Organization

Abstract: Using a novel household panel data set that combines purchase records with information on labor market status and other demographics, this paper reports that the availability of more discretionary time, due to, e.g., retirement, leads to additional shopping trips across a more diverse set of stores, increased spending on groceries, more diversity in products chosen, and less visits to restaurants. This confirms earlier findings in the literature, which mainly used cross-sectional variation and related shopping behaviors to the age of the household head. Our main results revolve around the question whether the availability of time also changes the types of products households buy. To answer this question we develop an approach to classify products according to the time it takes to turn them into consumption experiences and an empirical approach that builds on this classification. We find that the availability of additional time shifts a household's shopping bundle towards more time intensive market goods. This novel finding implies that product- and retail-innovations aimed at forward-integrating into household production are important drivers of demand in CPG industries.

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Bibliographic Reference

Bronnenberg, B, Klein, T and Xu, Y. 2018. 'Consumer Time Budgets and Grocery Shopping Behavior'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13302