Text

Consumer Search, Price Promotions, and Counter-Cyclic Pricing

Previous studies have found that increases in price promotions lead decreases in the average price of seasonal goods in high-demand seasons, countering basic supply and demand predictions. I explain this phenomenon by proposing that price-sensitive consumers are less likely to search in low-demand periods, changing consumer composition and decreasing aggregate price elasticity. Simultaneously, consumer searches allow the firm to use price promotions to attract price-sensitive consumers while maintaining high average prices. I test this and other explanations using a seasonal dynamic structural inventory model where consumers make decisions on whether to search, which reveals price promotions and allows consumers to purchase. I find that price-sensitive consumers make up 14.9% of searching consumers in the low-demand season versus 29% in the high-demand season, resulting in increased price elasticity. The results suggest that consumer composition is changing due to the different search incentives of different segments.

Ketersediaan

Informasi Detail

Judul Seri

MARKETING SCIENCE; Vol.41 No.2 March-April 2022

No. Panggil

-

Penerbit

: .,

Deskripsi Fisik

p. 294-314

Bahasa

English

ISBN/ISSN

-

Klasifikasi

NONE

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

-

Subjek

INVENTORY
PRICE PROMOTIONS
CONSUMER SEARCH
THEORETICAL MODEL
DYNAMIC STRUCTURAL MODEL
MIXED STRATEGY
COUNTER-CYCLIC PRICING
MONOPOLIST

Info Detail Spesifik

https://doi.org/10.1287/mksc.2021.1327

Pernyataan Tanggungjawab

Avery Haviv

Versi lain/terkait

Lampiran Berkas

Komentar