Purpose – The purpose of this paper is to examine how consumers respond differently to “scratch and save (SAS)” promotions versus “tensile price claims (TPC).” SAS promotions provide a possible discount (determined probabilistically) but conceal the exact amount until purchase. Tensile price claims (e.g. “up to 25 percent off on items marked with a red tag”) make imprecise price promotional cla...

Answers how much to order when to order. Reduced price when item is purchased in larger quantities.The first model we will present is called the economic order quantity EOQ. We will discuss two types of quantity discount contracts: all units discounts and.buy the lowest total cost quantity, save the buyer money and, in some cases, receive more goods. quantity discount model example When we buy ...

I propose a theoretical and empirical framework to decompose the price-to-book ratio into a fundamental component and a discount-rate component. Firms with good accounting fundamentals have high price-to-book ratios and high subsequent stock returns, while firms with low discount rates have high price-to-book ratios and low subsequent stock returns. Since the price-to-book ratio is the sum of t...

The existing literaturewhich analyses the relationship between the product differentiation degree and the sustainability of a collusive agreement on price assumes that firms cannot price discriminate, and concludes that there is a negative relationship between the product differentiation degree and the critical discount factor. This paper, in contrast, assumes that firms are able to price discr...

OBJECTIVE Fiscal policies may form a solution in improving dietary intake. This study aimed to examine the effectiveness of varying taxing and subsiding schemes to stimulate healthier food purchases. METHODS A randomized controlled trial with three levels of price reduction on healthy foods (no; 25%; 50%)×three levels of price increase on unhealthy foods (5%; 10%; 25%) factorial design was us...

In this study, the effect of a temporary price discount for a larger order than the regular order offered by the supplier on the retailer’s ordering policy is studied. The demand is assumed to be stock-dependent. The units in inventory deteriorate at a constant rate. This study will help the retailer to take the decision whether to adopt a regular or special order policy. The optimum special qu...

Equity analysts’ target price can be decomposed into two components: the earnings forecast and the price-to-earnings (P/E) ratio forecast, with the former containing shortterm earnings news and the latter containing news about long-term earnings growth and discount rates. Using a large database of target prices from 1997 to 2004, we document that both components are important in driving target ...

The buyer’s trust in seller in consumer to consumer e-commerce plays a critical role in consumer purchase decisions. Thus, this paper aims at analyzing the relationships between buyer’s trust in seller, price discount, and price premium by using product price as a moderator variable. A trust function for sellers was calculated through a questionnaire, by using the feedback mechanism and by appl...

The e↵ectiveness of monetary promotions has been well reported in the literature to a↵ect shopping decisions for products in real life experience [3]. Nowadays, e-commerce retailers are facing more fierce competition on price promotion in that consumers can easily use a search engine to find another merchant selling an identical product for comparing price. We study e-commerce data — shopping r...

The ordering model between single supplier and multi-retailers under the circumstance of non-cooperation supply chain is discussed in this paper, an improved linear price discount strategy is also provided. This strategy considers two situations of incremental discount and decremental discount at the same time. Moreover, Stackelberg game model of both parties’ order on supply and demand is give...