search query: @author Gourville, J.T. / total: 2
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| Author: | Gourville, J.T. Moon, Y. |
| Title: | Managing price expectations through product overlap |
| Journal: | Journal of Retailing
2004 : VOL. 80:1, p. 23-35 |
| Index terms: | Retailing Marketing Competition Products Pricing Consumer behaviour |
| Language: | eng |
| Abstract: | How should a retailer think about the decision to carry, price, and promote products overlapping with another store when such overlap is predicted to intensify price competition and drive down product prices? The existing research suggests that retailers ought to look to carry an ever-increasing percentage of unique or non-overlapping products, thereby eliminating the ability to compare prices across stores. This paper challenges this recommendation, arguing that overlapping (hereafter as: o-lapping) products allow one type of retailer—the higher end retailer—to signal the fairness of its prices and foster a more favourable price image than might otherwise exist. It is shown in a laboratory study that, for higher end stores, the existence of o-lapping products can significantly increase perceptions of pricing fairness and subsequent store choice, even when those o-lapping products are no cheaper in the focal store than in a competing store. |
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