Retail pricing and consumer psychology in Serbia

Consumer behavior in the Serbian retail market is heavily influenced by psychological pricing and significant price variations between major drugstore chains. Research indicates that 'free shipping' serves as a powerful marketing mechanism; consumers often perceive a single price including delivery as more attractive than a lower product price plus a separate shipping fee, even when the total cost is identical. This is because shoppers often view shipping fees as a cost for 'nothing' rather than a tangible product.

Furthermore, price comparisons between major retailers dm and Lilly reveal substantial discrepancies for identical products. For instance, NIVEA Soft universal cream (200 ml) shows a price difference of approximately 2.04 EUR between the two stores, with Lilly offering a lower loyalty club price. Similar significant gaps were found in Batiste dry shampoo, where the difference reached about 1.35 EUR. While some products like Garnier micellar water show much smaller price variations, the data suggests that checking prices across different retailers can lead to notable savings for consumers.