haku: @indexterm spatial economics / yhteensä: 62
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| Tekijä: | Desai, P. S. |
| Otsikko: | Quality Segmentation in Spatial Markets; When Does Cannibalization Affect Product Line Design? |
| Lehti: | Marketing Science
2001 : SUMMER, VOL. 20:3, p. 265-283 |
| Asiasana: | SEGMENTATION QUALITY SPATIAL ECONOMICS |
| Kieli: | eng |
| Tiivistelmä: | The author develops a model in which the market is made up of two segments, with one segment valuing quality more than the other. Consumers within each segment are distributed over Hotelling's (1929) linear city. Consumers in the two segments can have different taste preferences (transportation costs). Firm locations in the two segments may also be different. The paper begins with an analysis of the monopoly case. The author finds that when both segments are fully covered, the standard self-selection results of the high-valuation segment getting its preferred quality and the low-valuation segment getting less than its preferred quality do hold. Interestingly, when both segments are incompletely covered, under some conditions, the monopolist's price and quality choices are not determined by the cannibalization problem. |
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