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Fee or free? How much to add on for an add-on

Fruchter, Gila; Gerstner, Eitan; Dobson, Paul - In: Marketing Letters 22 (2011) 1, pp. 65-78

Persistent link: https://www.econbiz.de/10008926151

Profitable Pricing When Market Segments Overlap

Gerstner, Eitan; Holthausen, Duncan - In: Marketing Science 5 (1986) 1, pp. 55-69

In this paper, we analyze profitable pricing strategies when market segments overlap. Overlapping markets are segments … transaction costs across consumers and must choose an optimal pricing strategy. In particular, the monopolist must decide whether … differential pricing to be optimal, and that price differentiation can be optimal even when leakage between markets is substantial …

Persistent link: https://www.econbiz.de/10008787621

Loss Leader Pricing and Rain Check Policy

Hess, James D.; Gerstner, Eitan - In: Marketing Science 6 (1987) 4, pp. 358-374

Loss leader pricing and rain check policies are common in retail markets, yet research on these topics is surprisingly … scarce. In this paper, we study the effects of leader pricing and rain check policy on stores' profits and market outcomes …

Persistent link: https://www.econbiz.de/10008787655

Contingent Pricing to Reduce Price Risks

Biyalogorsky, Eyal; Gerstner, Eitan - In: Marketing Science 23 (2004) 1, pp. 146-155

potential buyers. Contingent pricing can be useful in mitigating these problems. In contingent pricing arrangements, price is … of obtaining the high price is not too high, sellers profit from using contingent pricing while economic efficiency … increases. The optimal contingent pricing structure depends on the buyer's risk attitude—a deep discount is most profitable if …

Persistent link: https://www.econbiz.de/10008787714

Can Bait and Switch Benefit Consumers?

Gerstner, Eitan; Hess, James D. - In: Marketing Science 9 (1990) 2, pp. 114-124

We present a model that leads to an equilibrium with characteristics similar to the following stylized facts observed in retail markets: (a) Retailers advertise only selected brands; (b) Often low priced advertised brands are understocked; (c) In-store promotions are biased towards more expensive...

Persistent link: https://www.econbiz.de/10008787820

Yes, “Bait and Switch” Really Benefits Consumers

Hess, James D.; Gerstner, Eitan - In: Marketing Science 17 (1998) 3, pp. 283-289

In our 1990 paper we demonstrated that a law prohibiting bait and switch may have the surprising consequence of hurting the consumers it was designed to protect. Wilkie, Mela, and Gundlach (1998) postulate that this may be false if upselling is equally effective when the bait brand is available...

Persistent link: https://www.econbiz.de/10008787832

Service Escape: Profiting from Customer Cancellations

Xie, Jinhong; Gerstner, Eitan - In: Marketing Science 26 (2007) 1, pp. 18-30

This paper explores the benefits of letting customers escape from prepurchased service contracts by offering refunds for cancellations. We show that such a policy creates opportunities for in a capacity-constrained service—i.e., collecting cancellation fees from advance buyers who cancel, and...

Persistent link: https://www.econbiz.de/10008787833

For a Few Cents More: Why Supersize Unhealthy Food?

Dobson, Paul W.; Gerstner, Eitan - In: Marketing Science 29 (2010) 4, pp. 770-778

Health-care experts believe that increases in portion sizes served by food vendors contribute to the obesity epidemic. This paper shows that food vendors can profit handsomely by using supersizing strategies where regular portion sizes are priced sufficiently high to discourage price-conscious...

Persistent link: https://www.econbiz.de/10008788097

Could higher fees lead to lower prices?

Ancarani, Fabio; Gerstner, Eitan; Posselt, Thorsten; … - In: Journal of Product & Brand Management 18 (2009) 4, pp. 297-305

Purpose – Supplementary fees such as restocking fees, nonrefundable shipping and handling fees, and cancellation fees have become prevalent in the USA, and customers as well as the popular media have raised serious concerns about them. This paper aims to test whether such fees could benefit...

Persistent link: https://www.econbiz.de/10014896099