A Competitive Pricing Model

This paper is principally concerned with the development of a competitive pricing model aimed at predicting the impact of a vector of price increases on sales of a given brand of a low priced, frequently purchased product. The model has its base in a set of assumptions describing the purchasing behavior of the individual consumer. A method for testing the model against empirical data is described and illustrated. The competitive pricing model is found to perform somewhat better than a simple regression model in the application reported.

• 저널Management Science · 25(11) · 1057–1068
• 토픽Consumer Market Behavior and Pricing · Marketing
• DOI10.1287/mnsc.25.11.1057
• 저자Hani I. Mesak, Richard C. Clelland