Asac 2008 Halifax, Nova Scotia Too Much or Too Little? Price Decreases in Multi-component Systems Markets 11
نویسندگان
چکیده
In this paper we investigate price decreases made by sellers of multi-component systems. Price reductions are perhaps the most widely used retail tactic to boost sales, and the desired magnitude of price reductions is of great interest to marketers. On the one hand, small price reductions when large reductions are warranted may only deplete retail margins without any impact on sales volume. On the other hand, large price reductions when they are unwarranted, leaves money on the table that would have boosted the retailer’s bottom line. Price reduction decisions tend to be complex, therefore.
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