search query: @author Anderson, E. T. / total: 2
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| Author: | Anderson, E. T. Simester, D. I. |
| Title: | Research Note: Price Discrimination as an Adverse Signal: Why an Offer to Spread Payments May Hurt Demand |
| Journal: | Marketing Science
2001 : SUMMER, VOL. 20:3, p. 315-327 |
| Index terms: | RESEARCH PRICE DISCRIMINATION DEMAND |
| Language: | eng |
| Abstract: | The authors develop a general game-theoretic model, illustrate how the model extends to installment billing, and conduct a large-scale field test. The general model illustrates how selling to multiple segments may lead to an adverse quality signal. The authors illustrate how the model extends to installment-billing offers in a direct- mail catalog. Installment-billing offers allow customers to spread the total payment over a series of payments. All customers have the option of using installment billing, and customers who use the plan receive an economic benefit (an interest-free loan). The authors would normally expect this type of offer to increase demand or, at a minimum, leave demand unchanged. |
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