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| Author: | Basu, A. Mazumdar, T. |
| Title: | Using a menu of geographic pricing plans: a theoretical investigation |
| Journal: | Journal of Retailing
1995 : SUMMER, VOL. 71:2, p. 173-202 |
| Index terms: | RETAILING PRICING PLANNING |
| Language: | eng |
| Abstract: | In a menu plan of geographic pricing, the retailer allows a customer to choose either a free on board origin (F.O.B. origin) plan, or a uniform delivered plan. In this article, the authors develop an approach to construct the best menu plan and compare its profitability and market coverage with that of a uniform delivered plan and a F.O.B. origin plan when these are used alone. It is shown that a menu plan can generate at least as much profit as either an F.O.B. origin or a uniform delivered plan used by itself under any demand condition. |
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