Central to the development of any model of retail and supplier price determination, therefore, is an understanding of how pricing strategies influence, how and where, prices are determined. This report describes the price formation in semi-perishable produce markets. This report summarizes that fresh fruit prices tend to be formed at...
Using monthly data from the 48 contiguous states except Nevada for the 1988-2002 period, the paper shows that retail gasoline prices respond faster to wholesale price increases than to equivalent wholesale price decreases. Since gasoline is the only variable input, one could reasonably assume that average margins in a state...
This paper examines dynamic pricing behavior in retail gasoline markets for cities over 574 weeks. The paper finds three distinct retail pricing patterns: standard cost-based pricing, sticky pricing, and steep, asymmetric retail price cycles that, while seldom documented empirically, resemble those of Maskin & Tirole [1988]. This paper uses a...
In 1996, the government of California approved a law purporting to deregulate the electricity market. The legislation, however, deregulated only the wholesale price, the amount power generators could charge California utilities. The retail price to consumers continued to be regulated by government price caps. This all worked fine as long...
This paper studies the determinants of sensitivity to the promotional activities of temporary price reductions, displays, and feature advertisements. Both the theoretical and empirical literatures on price promotions suggest that retailer competition and the demographic composition of the shopping population should be linked to response to temporary price cuts. However,...
Application of price bundling strategies in retail banking in Europe is a report based on an empirical study of price bundling practices. The current report defines three core price bundling models that are in one form or another applied by the interviewed banks. The models are cost efficiency bundling, cross-selling...
FLORHAM PARK, N.J. -- KSS Retail, a global leader in price optimization solutions, announced today that ABC Fine Wine and Spirits, the country's largest privately owned fine wine and spirits merchant, has selected KSS Retail as its solution provider for regular and promotional price optimization.
This study examines why retail price promotion strategies vary across retail sectors and across firms within sectors. Using hierarchical linear modeling and a sample of 38 firms from 11 retail sectors, the authors investigate how two sector-level characteristics, related to product assortment perishability and heterogeneity, and three firm-level characteristics, related...
In the business-to-business arena, the pricing problem typically involves more dimensions in calculation, process, and politics than in retail, making the search for an “optimal” price extremely difficult and perhaps irrelevant. However, the pursuit of sustained, measurable price improvement can pay big dividends, especially during the current squeeze on corporate...
Conventional wisdom suggests that price cuts are a good way to achieve broader retail distribution. But the real price-penetration story turns out to be a bit more complicated. When we look at the best-selling 3,000 SKUs in PC Data's monthly channel stConventional wisdom suggests that price cuts...
This article exploits a new station-level, twelve-hourly price dataset to examine the strong retail price cycles in the Toronto gasoline market. The cycles are visually similar to the theoretical Edgeworth Cycles of Maskin & Tirole [1988]: strongly asymmetric, tall, rapid, and highly synchronous across stations. The article tests a series...
Many banks believe that their customers are extremely sensitive to changes in fees and interest rates for retail deposit products. But recent research shows that in reality customers are fairly tolerant of such price changes. Contrary to industry folklore, customers are fairly tolerant of changes in the price of retail...
The analysis of vertical price relationship along the supply chain from producers to consumers has become a popular tool of evaluating the efficiency and degree of competition in agri-food systems over recent decades. There is a wealth of literature on the farm-retail price spread for different commodities and countries. However,...
With more products trying to cram into less retail space, marketers have their hands full trying to convince retailers why their brand should take up valuable real estate. Interactive retail tests are not necessarily new, but they have been limited in what they can accomplish. Most tests can show specific...
While retail price wars have received much business press and some research attention, it is unclear how they affect the major components of retailer performance: store incidence and basket size. Based on consumer hand scan and perceptual data, one analyzes the impact of a recent price war with a multivariate...
One goal in introducing retail electricity competition was to reduce retail electricity prices for industrial and residential consumers. In contrast, a just-published study by Cambridge Energy Research Associates CERA finds that consumers have saved billions of dollars from power deregulation. The price-comparison results of Apt and CERA provide a backdrop...
Article asserts that e-retailers must be aware of four "rights": the right product in the right place at the right time at the right price. Article explores the nuances of retail pricing strategies, including the silent messages that pricing and promotions send to customers. Many e-retailers lost sight of during...
WALL, N.J. -- For the fourth straight year, Oil Price Information Service OPIS, has released its award-winning "OPIS Retail Year in Review and 2008 Profit Outlook" [http://www.opisnet.com/retail/yearend2008_pr.asp] which provides an in-depth understanding of the retail fuel markets.
Sony Corp. last week dropped the price for its PlayStation 2 in Europe, followed by Microsoft Corp. reducing the price of its Xbox an hour later. In England, the PS2 will now retail for $260, a reduction of 15% ... Sony Corp. last week...
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