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Grocery price setting and quantity surcharges

Sprott, David E. - ; Manning, Kenneth C. - ; Miyazaki, Anthony D. - ;

Quantity surcharges occur when the unit price of a brand's larger package is higher than the unit price of the same brand's smaller package. The authors examine how price-setting practices in the grocery industry help explain the existence of quantity surcharges. Two studies support the authors' contention that common pricing practices aimed at establishing a favorable store-price image can result in quantity surcharges. First, an experiment shows that consumer demand and the importance price setters place on establishing a low store-price image have an interactive effect on price-setting behavior. Second, and examination of retail sales volume, price, and cost data suggests that such price-setting reactions can result in quantity surcharges when certain asymmetries in demand exist across package sizes. The authors also discuss managerial an public policy implications along with areas for further study..Printed Journal


Ketersediaan

Call NumberLocationAvailable
PSB lt.dasar - Pascasarjana1
Penerbit: American Marketing Association
Edisi-
SubjekBrands
Regression analysis
Image
Pricing policies
studies
Grocery stores
Surcharges
ISBN/ISSN222429
Klasifikasi-
Deskripsi Fisik-
Info Detail Spesifik-
Other Version/RelatedTidak tersedia versi lain
Lampiran BerkasTidak Ada Data

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