search query: @indexterm RETAIL PRICING / total: 107
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| Author: | Shugan, S. M. Desiraju, R. |
| Title: | Retail product-line pricing strategy when costs and products change |
| Journal: | Journal of Retailing
2001 : SPRING, VOL. 77:1, p. 17-38 |
| Index terms: | RETAIL PRICING RETAILING PRODUCTS PRODUCT VARIETY PRICING |
| Language: | eng |
| Abstract: | Rapid changes in technology can have a sudden and differential impact on cost components of variants within product lines such as computers, printers, digital cameras and cellular phones. This paper answers how retailers should react to such changes. The authors address this issue by answering three questions. First, when the costs of specific product components change, how retailers should adapt their prices in the affected product lines. Second, what the impact will be on profit margins, the range of prices and average price of the line. Finally, if a product variant is either added or removed from the line, how the retailer should adjust the other prices in the line. The authors' analysis reveals that the nature of interaction between the variants of the product line plays a central determining the retailer response to cost shocks. |
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