Free Riding in Retail Stores: An Investigation of Its Perceived Prevalence and Costs

Abstract

The incidence of free riding, where customers use information and services from a full-service retail store to allow for later purchase from limited-service stores, presents many potential problems for the full-service retailer. To the extent that free riding occurs, this form of consumer behavior has the potential to reduce both the productivity and profits of full-service retailers. In addition to the loss of store revenues, evidence from this study supports a negative influence on the productivity of sales personnel due to the impact of consumer free riding. This manuscript explores the prevalence of free riding as perceived by retail store managers and salespeople. Further detail is presented concerning the means by which free riding is perceived to occur and its perceived impact on full-service retailers.