Competitive One-to-One Promotions

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Competitive One-to-One Promotions

One-to-one promotions are possible when consumers are individually addressable and firms know something about each customer’s preferences. We explore the competitive effects of one-to-one promotions in a model with two competing firms where the firms differ in size and consumers have heterogeneous brand loyalty. We find that one-to-one promotions always lead to an increase in price competition ...

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ژورنال

عنوان ژورنال: Management Science

سال: 2002

ISSN: 0025-1909,1526-5501

DOI: 10.1287/mnsc.48.9.1143.172