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Retailer Pricing and Competitive Effects

Praveen Kopalle, Dipayan Biswas, Pradeep Chintagunta (), Jia Fan, Koen Pauwels, Brian T. Ratchford and James A. Sills

Journal of Retailing, 2009, vol. 85, issue 1, 56-70

Abstract: Until recently, retailers have taken an either/or approach to competition: either reacting fiercely to competitive price changes or ignoring them altogether. Today, however, firms make a concerted effort to determine and quantify competitive effects. In this paper, we focus on how pricing and competitive effects interact as a general phenomenon, particularly as it applies to retailing. We attempt to construct a general framework that enhances our understanding of the emerging research issues in the area of pricing and competitive effects, and we examine their implications for practice. The areas that show high promise/opportunity are in the online setting for all types of goods—fashion, perishable and packaged staples, and durables—particularly with respect to pricing for profitability and understanding the impact of competition. Other opportunities include understanding the pricing and competitive effects in the perishable goods category sold in specialty, discount, and convenience stores.

Keywords: In-channel competition; Cross-channel competition; Price and product customization; Product type and complementarity; Manufacturer interaction; Cross-price effects; Retailer pricing; Competitive effects (search for similar items in EconPapers)
Date: 2009
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Handle: RePEc:eee:jouret:v:85:y:2009:i:1:p:56-70