TITLE

Retail-Price Drivers and Retailer Profits

AUTHOR(S)
Nijs, Vincent R.; Srinivasan, Shuba; Pauwels, Koen
PUB. DATE
July 2007
SOURCE
Marketing Science;Jul/Aug2007, Vol. 26 Issue 4, p473
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
What are the drivers of retailer pricing tactics over time? Based on multivariate time-series analysis of two rich data sets, we quantify the relative importance of competitive retailer prices, pricing history, brand demand, wholesale prices, and retailer category-management considerations as drivers of retail prices. Interestingly, competitive retailer prices account for less than 10% of the over-time variation in retail prices. Instead, pricing history, wholesale price, and brand demand are the main drivers of retail-price variation over time. Moreover, the influence of these price drivers on retailer pricing tactics is linked to retailer category margin. We find that demand-based pricing and category-management considerations are associated with higher retailer margins. In contrast, dependence on pricing history and pricing based on store traffic considerations imply lower retailer margins.
ACCESSION #
26915327

 

Related Articles

  • Shock treatment needed to revive brands in '90s. Baum, Herbert // Marketing News;12/10/1990, Vol. 24 Issue 25, p12 

    The article offers tips to revive brands. Manufacturers and retailers must provide quality products with point of difference. To revive brands, companies can create new brands, build and strengthen existing brands and extend brands into new categories. The things to consider in building existing...

  • RETAIL CHALLENGES WITH A PRODUCT FOCUSED STRATEGY. Capobianco, Enzo // Images Retail;Oct2014, Vol. 13 Issue 10, p36 

    The article presents some solutions to the challenges being experienced by retailers with a product-based model. It mentions the challenges of excess stock of unsolicited merchandise and stock outs on requested merchandise, the need for retailers to consider customer satisfaction, market...

  • Boost performance through brand scorecard. Smith, Sherwood Badger // Natural Foods Merchandiser;Mar2006, Vol. 27 Issue 3, p74 

    The article discusses the ways on how to boost consumer satisfaction using a brand scorecard. The author said that store owners should listen to their customers in a detailed way. Operational branding effort functions best when led by a senior management and possessed by everyone within the...

  • Brand and be counted. Payne, Lindsay // Cabinet Maker;8/12/2005, Issue 5451, p28 

    Explains the value of a brand as business tool to help retailers communicate with their customers and encourage their loyalty. Reasons for creating a brand; Distinguishing between a brand name and a brand mark; Choosing a brand name that is easy to say, spell and remember. INSETS: Register to...

  • Who Benefits from Store Brand Entry? Pauwels, Koen; Srinivasan, Shuba // Marketing Science;Summer2004, Vol. 23 Issue 3, p364 

    Store brand entry has become a key issue in marketing as it may structurally change the performance of and the interactions among all market players. Based on their multivariate time-series analysis, the authors demonstrate permanent performance effects of store brand entry, typically benefiting...

  • Superbrands extends judging to consumers. Shaw, Sharon Desker // Media: Asia's Media & Marketing Newspaper;9/19/2003, p10 

    Superbrands, the Asia-Pacific region brand recognition awards, will open the brand selection process to consumers as part of a new two-stage evaluation process. Asian Integrated Media (AIM), which runs the Superbrands awards in six markets, has teamed up with Discovery Channel and Synovate to...

  • Strategic effects of private labels. Bontems, Philippe; Monier-Dilhan, Sylvette; Réquillart, Vincent // European Review of Agricultural Economics;Jun1999, Vol. 26 Issue 2, p147 

    This paper presents a model of retailer-manufacturer interaction that focuses on retail competition between national brands and private labels positioned by retailers to compete with them. The final demand side involves vertical differentiation between the private label (low quality) and the...

  • Products with branded components: An approach for premium pricing and partner selection. Venkatesh, R.; Mahajan, Vijay // Marketing Science;1997, Vol. 16 Issue 2, p146 

    An increasing number of products are being sold with components that themselves are brand names. Examples are personal computers with Intel microprocessors and diet soft drinks that use the NutraSweet formulation. Branded components may alter consumers' valuation of the bundle, necessitating...

  • El Abc de dirigir la experiencia del cliente.  // MK - Marketing más Ventas;Mar2011, Vol. 25 Issue 266, p16 

    No abstract available.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sign out of this library

Other Topics