Advanced Search
MyIDEAS: Login to save this paper or follow this series

Preisschwellen und Deckungsbeitrag - Verschenkt der Handel große Potentiale?

Contents:

Author Info

  • Karen Gedenk
  • Henrik Sattler
Registered author(s):

    Abstract

    Retailers have been criticized for heavily relying on odd prices although their advantage over even prices has not been convincingly proven. In this paper we argue that such behavior does not have to stem solely from tradition, but may be seen as a rational way of dealing with uncertainty. We review 21 empirical studies on the effects of odd versus even prices and find that the results are inconclusive as to whether threshold effects exist. In an analysis of profit contributions we then show that in the light of such uncertainty it is rational to set odd prices. The reason is that only small losses in profit contribution are incurred when odd prices are set although no thresholds exist. In the opposite case, however, losses can be quite substantial. Results of a simulation show the size of the two errors for a realistic range of response parameters.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.wiwi.uni-jena.de/Papers/wp-a9704.ps
    Download Restriction: no

    Bibliographic Info

    Paper provided by Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät in its series Working Paper Series A with number 1997-04.

    as in new window
    Length:
    Date of creation: 15 Jul 1997
    Date of revision:
    Handle: RePEc:jen:jenabe:1997-04

    Contact details of provider:
    Postal: Carl-Zeiss-Strasse 3, 07743 JENA
    Phone: +049 3641/ 9 43000
    Fax: +049 3641/ 9 43000
    Web page: http://www.wiwi.uni-jena.de/
    More information through EDIRC

    Order Information:
    Postal: If a paper is not downloadable, please contact the author(s) or the library of University of Jena, not the archive maintainer.

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Pradeep K. Chintagunta, 1993. "Investigating the Sensitivity of Equilibrium Profits to Advertising Dynamics and Competitive Effects," Management Science, INFORMS, vol. 39(9), pages 1146-1162, September.
    2. Schindler, Robert M. & Wiman, Alan R., 1989. "Effects of odd pricing on price recall," Journal of Business Research, Elsevier, vol. 19(3), pages 165-177, November.
    3. Wesley A. Magat & John M. McCann & Richard C. Morey, 1986. "When Does Lag Structure Really Matter in Optimizing Advertising Expenditures?," Management Science, INFORMS, vol. 32(2), pages 182-193, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:jen:jenabe:1997-04. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.