We consider a company selling heterogeneous products with prices customized for each customer and the final price is set by negotiations between sales agents and customers. This type of pricing modality is referred to as customized pricing with discretion and commonly used in insurance, consumer...

A gift card promotion provides customers an incentive to spend more than an expenditure level on regularly priced (as opposed to discounted) products, by rewarding customers with a gift card to be redeemed against a future purchase. This type of promotion is widely used by luxury fashion,...

We study and empirically quantify how much, in a markdown pricing situation, customers anticipate regret of paying a high price during the regular season or facing the possibility of a stockout during the markdown season. In addition, we provide a framework to quantify the impact of customer...