search query: @author Srinivasan, K. / total: 17
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| Author: | Balachander, S. Srinivasan, K. |
| Title: | Quantity discounts, manufacturer and channel profit maximization: Impact of retailer heterogeneity |
| Journal: | Marketing Letters
1998 : APR, VOL. 9:2, p. 169-179 |
| Index terms: | PRICING MARKETING CHANNELS RETAILING |
| Language: | eng |
| Abstract: | In the paper, it is investigated if a manufacturer can simultaneously maximize own and channel profit with any quantity-based pricing policy, including a quantity-discount policy, when selling through heterogeneous retailers. It is shown that the manufacturer's best possible pricing policy, when retailers self-select quantities, is a quantity discount. However, this policy does not maximize channel profit. Driven by the manufacturer's inclination to reduce the quantity sold through a high-cost or low-demand retailer, this result holds whether or not retailers compete. Implications of the analysis for the manufacturer are discussed upon. |
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