Does Demand Fall When Customers Perceive That Prices Are Unfair: The Case Of Premium Pricing for Large Sizes
نویسنده
چکیده
W analyze a large-scale field test conducted with a mail-order catalog firm to investigate how customers react to premium prices for larger sizes of women’s apparel. We find that customers who demand large sizes react unfavorably to paying a higher price than customers for small sizes. Further investigation suggests that these consumers perceive that the price premium is unfair. Overall, premium pricing led to a 6% to 8% decrease in gross profits.
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Research Note - Does Demand Fall When Customers Perceive That Prices Are Unfair? The Case of Premium Pricing for Large Sizes
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تاریخ انتشار 2006