Advertising-Pricing Conduct in Meat Retailing*

V. James Rhodes and Ahmed Abou-Bakr

Journal of Agricultural and Applied Economics, 1974, vol. 6, issue 2, 59-63

Abstract: For a decade or longer it has been recognized that pricing of food products in supermarkets is not a matter of competitive price discovery but of intricately interwoven pricing and merchandising strategy. In the search for patterns of that strategy, the more conventional approach has been to apply customary data on market structure. In a further search for conduct patterns, because of the prohibitive expense of a comprehensive multi-city study, the best research course is to build up a library of case studies. This case study of 14 supermarkets in Columbia, Mo., reports two contrasting patterns of advertising-pricing behavior. Prices are not varied as much as the ads imply.

Date: 1974
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