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Optimal pricing strategies for an automotive aftermarket retailer

Gopalakrishna, Srinath - ; Mantrala, Murali K. - ; Seetharaman. P.B. - ; Kaul, Rajeeve - ; Stam, Antonie - ;

The extant literature on retail category pricing optimization concentrates on grocery retailing. In contrast, this article focuses on the problem of determining profit-improving, store-level prices of failure-related "hard-part" product categories at a US specialty automotive part retailer with 3400 stores. Using two years of weekly sales histories from 800 stores, the authors develop store-level demand models for 23 subclasses of a hard part and employ these with available product cost data to set prices of variants of each subclass at each store that better satisfy demand and increase profit. Taking advantage of the rare access to a national, store-level database and product cost data, the empirical analysis also yields new insights into (1) asymmetric price competition across quality variants, (2) deviations of actual from optimal prices, and (3) the impact of observable store characteristics on estimated price response parameters of demand that run counter to previous grocery retailing-based findings..Printed Journal


Ketersediaan

Call NumberLocationAvailable
PSB lt.dasar - Pascasarjana1
Penerbit: American Marketing Association
Edisi-
SubjekRetailing
Data analysis
Product costing
Automotive parts
Pricing policies
studies
Grocery stores
ISBN/ISSN222437
Klasifikasi-
Deskripsi Fisik-
Info Detail Spesifik-
Other Version/RelatedTidak tersedia versi lain
Lampiran BerkasTidak Ada Data

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