Quantum prices
Many retailers practice an extreme form of discrete pricing defined as quantum prices: differentiated products are priced using few and sparse price buckets. To show this, online data was collected for 350,000 products from over 65 fashion retailers in the U.S. and the U.K. This pricing strategy is...
| Autores: | , |
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| Tipo de documento: | artigo |
| Data de publicação: | 2023 |
| País: | España |
| Recursos: | Universidad de Navarra |
| Repositório: | Dadun. Depósito Académico Digital de la Universidad de Navarra |
| Idioma: | inglês |
| OAI Identifier: | oai:dadun.unav.edu:10171/66791 |
| Acesso em linha: | https://hdl.handle.net/10171/66791 |
| Access Level: | Acceso aberto |
| Palavra-chave: | Behavioral pricing Price frictions Salience Recall Cross-country retail |
| Resumo: | Many retailers practice an extreme form of discrete pricing defined as quantum prices: differentiated products are priced using few and sparse price buckets. To show this, online data was collected for 350,000 products from over 65 fashion retailers in the U.S. and the U.K. This pricing strategy is observed within categories and across categories (i.e., similar or even disparately distinct products like jeans and bags have an identical price), as well as in product introductions, where new products come in at previous price buckets. Normalized indices indicate substantial price clustering after controlling for popular prices, convenient prices, assortment size, or digit endings. Quantum prices have implications for price adjustments through product shares, markdown prices, and for the law-of-one-price. A behavioral model of price salience and recall is discussed. |
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