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Author: Anna Bottasso
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We analyze a sample of consumer-electronics products sold by the US NewEgg online-retailer to study the impact of Price Matching Guarantees (PMGs) policies on prices. By applying aDifference-in-Differences approach,we find that prices of the policy-adopting retailer increase by 4.7% during the policy validity period and up to five days after the treatment, while those of the major non-adopting competitor are not affected. Results are mainly driven by highlyrated, visible and expensive products, while the policy does not affect low-rated, less visible and cheaper ones. Overall findings are consistent with the hypothesis that PMGs act as price discrimination tools.
Author: Anna Bottasso
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We analyze a sample of consumer-electronics products sold by the US NewEgg online-retailer to study the impact of Price Matching Guarantees (PMGs) policies on prices. By applying aDifference-in-Differences approach,we find that prices of the policy-adopting retailer increase by 4.7% during the policy validity period and up to five days after the treatment, while those of the major non-adopting competitor are not affected. Results are mainly driven by highlyrated, visible and expensive products, while the policy does not affect low-rated, less visible and cheaper ones. Overall findings are consistent with the hypothesis that PMGs act as price discrimination tools.
Author: Arcan Nalca
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
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Book Description
Price matching has become a ubiquitous strategy for retailers both in product and service industries, especially with the growing ease of checking prices online. With this strategy, retailers promise not to be undersold and match competitor's lower price (if any). Price-sensitive consumers tend to be happy with this since they potentially can get the lowest price at their "favourite" retailer. A relatively under-researched topic in this context is the fact that this price convenience normally comes with a number of conditions.We analyze two of the most common ones - the product must be available at the lower priced retailer (availability condition) and the price match extends only to a competing retailer and not to a direct-to-consumer manufacturer (channel condition) - and investigate their implications for the channel and consumers. We show that if consumers consider the fact that they might be denied the price matching benefit based on verification of availability at the competitor's location while making a purchase decision, then they will benefit from a lower price by increasing the competition between the retailers; on the other hand, not considering this fact would allow the retailers to price discriminate and might harm consumers. As regards channel structure, we prove that if the upstream partner has the power to set the wholesale price, then it does not make sense for a retail channel to price match with a manufacturer selling directly to consumers. But, in sectors where there are dominant retailers who has a say in determination of the wholesale price, price matching can be an equilibrium strategy for the retail channel, even when manufacturers are directly selling to consumers. Furthermore, price matching is also the equilibrium strategy for upstream manufacturers as it redirects demand from the retail to their direct channel.
Author: Chunhua Wu
Publisher:
ISBN:
Category :
Languages : en
Pages : 47
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Book Description
Consumer showrooming - the behavior of examining a product in a brick-andmortar store and later buying it from an online retailer - is seen as a major threat to brick-and-mortar retailers. To combat showrooming, Best Buy announced a price-matching policy in 2012 to compete with major online retailers. In this paper, we examine the impact of Best Buy's price-matching policy on the price competition between Best Buy and Amazon across a wide variety of product categories. We empirically explore Best Buy's and Amazon's pricing patterns using unique datasets collected from different sources, and find robust results that the competitive effect of the price-matching policy depends on the showrooming value of a product. For those products that offer consumers large value from physical store experiences - i.e., the “showrooming products” - the policy led to more intense price competition. Moreover, Amazon cut prices more aggressively than Best Buy. For those products that offer relatively small showrooming value - i.e., the “non-showrooming products” - it alleviated price competition. We also provide theoretical explanations for the findings and illustrate why the price matching policy did not reduce the price gaps between Amazon and BestBuy.
Author: Kiran Gange
Publisher: Taylor & Francis
ISBN: 100091111X
Category : Business & Economics
Languages : en
Pages : 207
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Book Description
Going under the hood of retail strategy, this book provides in-depth coverage of how retailers can leverage the latest in data analytics and technology to improve profitability and customer value through pricing. Retail pricing is not about dollars, pounds or euros, but the value a customer associates with a product, which can and does change over time. To maximize revenues and profits, pricing must be dynamic, strategic, and in today’s hyper-connected and -competitive world, scientific. Using technology to gather customer insights and create data-driven pricing approaches can also enhance the customer experience, improve vendor management, help monitor competitors, and ensure market efficiency – including the much-needed reduction of waste in the food sector. This book uses case studies from around the globe to illustrate the evolution of retailing and offers takeaways with each chapter to enable retailers to manage the future of pricing. Retail and pricing managers, retail sector consultants, and students of sales and marketing will welcome this book’s innovative solutions to one of bricks-and-mortar retailing’s most critical challenges.
Author: Utpal Dholakia
Publisher: Utpal Dholakia
ISBN: 0999186736
Category : Business & Economics
Languages : en
Pages : 229
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Book Description
Pricing holds the key to business success. The greatest challenge in pricing is the human factor. To price effectively, customer psychology usually trumps rational microeconomic thinking. * How did Subway turn one accidentally discovered price promotion into a multi-billion dollar success story? * How much knowledge of prices do customers really have? * Why do most people spend two months’ salary to buy an engagement ring? * Does Pay What You Want pricing really work? * How can you get your customers to trade up? * Why do Supreme t-shirts sell for $1,500 or more? * Why do so many consumers hate Uber’s surge pricing even though economists love it? In Priced to Influence, Sell & Satisfy, you will find answers to these and many more questions. The book introduces the latest thinking about Psychological Pricing, the science of designing effective pricing strategies using behavioral economics principles. You will learn how customers search for, evaluate, share, and use prices in their buying decisions, how they participate in setting prices, and what managers can do to understand and influence these processes. Psychological pricing actions are levered. Many of them require relatively small investments and produce disproportionately large returns to the business.
Author: Joydeep Srivastava
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Many retailers offer a price-matching guarantee that promises to pay consumers the difference if they find a lower price elsewhere. This article proposes that the effectiveness of a price-matching guarantee as a signal of low store prices depends on individuals' beliefs about the degree to which other consumers in the market engage in price search, enforce price-matching guarantees, or both. Consistent with signaling theory, results of a survey and two experimental studies demonstrate that market level factors affect consumer beliefs about the extent to which others engage in price search and thereby the effectiveness of price-matching guarantees in lowering perceptions of store prices. The implications of the findings for retail strategy are discussed along with directions for future research.
Author: Saibal Ray
Publisher: Springer Nature
ISBN: 3030317331
Category : Business & Economics
Languages : en
Pages : 282
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Book Description
This book aims to revisit the “traditional” interaction between channel strategies and the marketing mix in a connected world. In particular, it focuses on the following four dimensions in this context: Consumers, Products, Value Proposition and Sustainability. Keeping in mind the growing digitalization of business processes in the retail world and the move towards omni-channel retailing, the book introduces the state-of-the-art academic and practitioner studies along these dimensions that could enhance the understanding of the potential impact that new technologies and strategies can have on practice in the near future. When launching a new product/service to market, firms usually consider various components of the marketing mix to influence consumers’ purchase behaviors, such as product design, convenience, value proposition, promotions, sustainability initiatives, etc. This mix varies depending on the specific channel and consumer niche that the firm is targeting. But this book shows how channel strategy also influences the effectiveness in utilizing the marketing mix to attract potential customers.
Author: Jean-Paul Rodrigue
Publisher: Routledge
ISBN: 1136777326
Category : Science
Languages : en
Pages : 432
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Book Description
Mobility is fundamental to economic and social activities such as commuting, manufacturing, or supplying energy. Each movement has an origin, a potential set of intermediate locations, a destination, and a nature which is linked with geographical attributes. Transport systems composed of infrastructures, modes and terminals are so embedded in the socio-economic life of individuals, institutions and corporations that they are often invisible to the consumer. This is paradoxical as the perceived invisibility of transportation is derived from its efficiency. Understanding how mobility is linked with geography is main the purpose of this book. The third edition of The Geography of Transport Systems has been revised and updated to provide an overview of the spatial aspects of transportation. This text provides greater discussion of security, energy, green logistics, as well as new and updated case studies, a revised content structure, and new figures. Each chapter covers a specific conceptual dimension including networks, modes, terminals, freight transportation, urban transportation and environmental impacts. A final chapter contains core methodologies linked with transport geography such as accessibility, spatial interactions, graph theory and Geographic Information Systems for transportation (GIS-T). This book provides a comprehensive and accessible introduction to the field, with a broad overview of its concepts, methods, and areas of application. The accompanying website for this text contains a useful additional material, including digital maps, PowerPoint slides, databases, and links to further reading and websites. The website can be accessed at: http://people.hofstra.edu/geotrans This text is an essential resource for undergraduates studying transport geography, as well as those interest in economic and urban geography, transport planning and engineering.
Author: Eleonora Pantano
Publisher: Taylor & Francis
ISBN: 1317378776
Category : Business & Economics
Languages : en
Pages : 364
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Book Description
Since the first edition of this landmark textbook, online shopping has grown exponentially to the point that it now threatens to eclipse the high street. With online retail offering both advantages and challenges that are distinct from traditional commerce, this textbook provides new approaches to retailing and as such helps readers to take advantage of new digital technologies. This long-awaited new edition provides a thorough and substantial update to its solid core principle of digital retailing and its relationship with conventional retail methods. These principles are explained clearly and practically to provide students, entrepreneurs and researchers with a reliable guide to the implementation and operation of a successful online retailing business. Updates to this edition include: Search engine marketing and search engine optimization. New and updated case studies, including Tesco’s virtual store, Ray-Ban’s smart mirror, IKEA’s mobile catalogue and Nordstrom’s TextStyle. Social networks and electronic word-of-mouth communication. A new chapter on ubiquitous retailing. A brand new companion website to support tutors. With accessibly written features such as key learning points, questions, think points and further reading, Internet Retailing and Future Perspectives is ideal for anyone using, studying or researching digital commerce.
Author: Rafi Mohammed
Publisher: Harper Collins
ISBN: 0061985279
Category : Business & Economics
Languages : en
Pages : 262
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Book Description
Leading pricing expert Rafi Mohammed shows businesses how to reap a financial windfall and foster growth using the underutilized and often overlooked strategy of setting prices. The 1% Windfall reveals how modest incremental changes to an everyday business practice—pricing—can yield significant rewards. Illustrating the power of pricing, a study of the Global 1200 found that if companies raised prices by just 1%, their average operating profits would increase by 11%. Using a 1% increase in price, some companies would see even more growth in percentage of profit: Sears, 155%; McKesson, 100%; Tyson, 81%; Land O'Lakes, 58%; and Whirlpool, 35%. The good news is that better pricing is more than simply raising prices. Instead, the key is to offer customers a variety of pricing options. This strategy is win-win: profits to companies and choices for consumers. But how do executives and managers set the right price? Underpinned by sound empirical research and real-life anecdotes, The 1% Windfall addresses this fundamental question. This book offers guidelines that any company—whether a multinational conglomerate, a small business, or even a nonprofit—can follow to create a comprehensive pricing strategy for any product or service. In addition, these versatile techniques and tools provide solutions to avert a slump in a recession, offset the impact of inflation, or battle a new competitor. The result is a mind-opening, clear blueprint for com-panies to price for profit and growth.
