Pricing Issues

Overview:  This section contains manuscripts examining issues related to pricing in retailing.

Ash, William D., “The Extent of Usage of Superficial Discounting By Selected Retailers in Los Angeles and Orange Counties in California”,ACRA, Spring 1984.A pricing study of 150 items in 16 stores in the Los Angeles area indicates that many stores, particularly the "better department stores" have a policy of inflated prices and superficial price reductions to levels that are still above the reasonable price for the area. The author raises the legal and moral issues in this artificial pricing. The study was conducted as part of a retailing course and would be interesting to replicate in other areas.

Berry, Dr. Leonard L. “Reflections on Retailing's Price War”.This paper analyzes the overuse of "Sales" in today's marketplace. It examines the effects; lessening the impact of a sale, sacrificing the trust of customers, and competing on a basis that can easily be matched by competitors. It also discusses alternative options to the sale.

Carlson, Phillip, “Fashion Retailing - Effect of Markdown on the Rate of Sale”,ACRA, Winter 1983.A visual and graphic presentation of implications of a consistent markdown policy upon control, profits, inventory, turnover, cash needs, and decisions in the retailing environments. These are the overheads to accompany "A Systems View Retail Fashion Planning and Operations." Item #RCarP 83.

Clodfelter, Richard “Pricing Accuracy at Stores That Use Scanners in the USA: An Analysis of Three National Studies” ,ACRA Spring 2000  Toronto (May 2000).Three national studies aimed at gauging the accuracy of scanners with regard to price have been conducted in recent years. The FTC presented an initial study in 1996 as well as a follow-up study in 1998. Meanwhile, the University of South Carolina was conducting a similar study that was released in 1997. This study is an analysis of these three studies that should provide detailed description of pricing accuracy by scanners in the United States. Included are recommendations that could have a "direct implications for retailers."

Dickinson, Roger , Myron Gable,Marvin Rothenberg and Julian Yudelson, “Price Compatibility: The Department Store” ,ACRA, Winter 1986.A working paper on the concept of Price Compatibility as a tool for relating merchandise classifications within a broader offering. The problem of defining and measuring market share in a complex scrambled, retail environment is discussed.

Dickman, Roger , “Pricing at Retail”,ACRA, April 1992 Dallas.In this paper the author covers such things as strategy and price, characteristics and basics of pricing, passive pricing methods, aggressive pricing methods, neutral pricing methods, special pricing considerations, and possible ramifications. This is all done with respect to price.

Frazier, Robert M, “Reducing Markdowns by Measuring Sell-Through: A Plea for Improving Merchandising Productivity in Retail Stores”,NRMA, 1985.The speech delivered by Robert M. Frazier, Executive Vice President of Kurt Salmon Associates, at National Retail Merchants Association Convention in 1985. The speech supports the sell-through approach, and compares it to the traditional method of markdowns.

Kwon, Kyoung-nan and Lee, Jinkook, “Retail Card Usage: In Relation with Other Credit Lines Available and Credit Need”,ACRA, Winter 1999.This study discusses consumers’ use of store credit cards by investigating how the use of bank cards influences activity or inactivity of store cards. Both store and bank cards provide distinctive functions for consumers: payment instrument and financing source, yet this paper investigates how the two types of cards compete with one another.

Laroche, Michel,“Effects of Coupons on Brand Categorization”,ACRA Spring  Montreal 2003.The objective of this study is to explore the effects of coupons on consumers' brand categorization and choice processes using fast-food restaurants in China.  Results are discussed in light of the important implications they have for brand management in multibrand situations and international management of sales promotions.

Marquardt, Ray and Robert Roe, “Should Management of Department Stores or Small General Merchandise Outlets Use a Price Reduction Strategy to Generate Sales Volume?”,ACRA, Winter 1983 .A study that attempts to determine the impact that an overall price reduction policy is likely to have upon profits for department stores. Discusses and exhibits calculations from data incorporated into a breakeven model for both specialty store and sporting goods store.

Marquardt, Raymond and Robert Roe, “An Investigation of the Unit Pricing System in Three Supermarket Chains”,ACRA, Winter 1983.A study that investigates the types and numbers of discrepancies inherent in unit pricing systems, based on observations in three major supermarket chains. Utilizes the results of this study to make a case for establishment of national standards and consumer education programs relating to the mechanics of unit pricing.

Owens, Jan, “Hidden, Missing and Vague Prices: Consumer Reactions and Managerial Implications”,ICSC / ACRA Las Vegas,  May, 2002,This exploratory study examines consumers' cognitive and behavioral reactions to missing price information across a range of retail contexts. (grocery, convenience, discount, department stores)

Robicheaux, Robert A. , Richard Flight and John R. Henley, “Gasoline Retailing: The Impact of Motor Fuel Marketing Legislation on Prices and Distribution Gross Margins”, ACRA, Winter 2004, New York The purpose of this paper is to determine if the Alabama Motor Fuel Marketing Act AMFMA has affected any changes in gasoline retail prices, retail margins and wholesale margins in Alabama. We focus on how distribution channels for gasoline have changed and how the changes are affecting gasoline retailers. We examine how one state’s attempt to protect its independent gasoline retailers may have led to some unique structural changes in the distribution channel which seem to have penalized retailers and favored wholesalers.  The findings in this paper are based exclusively on valid and reliable data which is comparable across the four states examined.