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Pricing cues and retail competition

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  • Krishnamoorthy, Anand
  • Sainam, Preethika

Abstract

Retailers that do not consistently display pricing cues (e.g., “Save $200″) may face lower demand from consumers who do not benefit from the additional transaction utility, a fact that is well-documented in the extant literature. This study investigates why some retailers choose not to display pricing cues despite these documented benefits, how optimal prices are affected by the display of pricing cues, and which type of retailer – service-focused or price-focused – is more likely to display pricing cues.

Suggested Citation

  • Krishnamoorthy, Anand & Sainam, Preethika, 2025. "Pricing cues and retail competition," Journal of Retailing, Elsevier, vol. 101(1), pages 55-67.
    • Handle: RePEc:eee:jouret:v:101:y:2025:i:1:p:55-67
    DOI: 10.1016/j.jretai.2024.12.002
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    References listed on IDEAS

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