Marketing Models
Detailed Course Outline and Reading List

Marketing Mix (1) - Price and Promotion - February 12


Readings

Historical Perpectives

Text Chapter 15: Pricing by Russell S. Winer.

 

Text Chapter 17: Sales Promotions by Kusum L. Ailawadi and Sunil Gupta.

                  

Recent Contributions

Mela, Carl F., Sunil Gupta, and Donald R. Lehmann (1997), "The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice,” Journal of Marketing Research, 34 2), 248-61. 1998 Paul E. Green Award and 2002 William F. O’Dell Award. [O’Dell Award winners write a commentary that is published in JMR. You may wish to look them up.]

 

Pauwels, Koen, Dominique Hanssens, and S. Siddarth (2002),"The Long-Term Effects of Price Promotions on Category Incidence, Brand Choice, and Purchase Quantity," Journal of Marketing Research, 39 (4), 421-439. William F. O’Dell Award (2007).

Zauberman, Gal, et al. (2009), "Discounting time and time discounting: Subjective time perception and intertemporal preferences." Journal of Marketing Research 46 (4), 543-556. 2014 William F. O’Dell Award.

Discussion
Questions
  1. The economic literature has had a profound influence on how marketers think about price. Beginning with Kent Monroe's seminal work, the specification of models describing market place reactions to price have primarily relied on cognitive theories of price perception that involve different comparison standards (expectations, fairness).  Are other psychological theories relevant? Discuss. What are some opportunities to incorporate psychological constructs into models of market place reactions to deals?

  2. Industrial buyer behavior is significantly different from consumer behavior.  There are differences in the research questions relevant to B2B versus B2C research on pricing strategies and tactics, as well as buyer response to price. For example, initial purchases may be much different from routinized purchases in a B2B environment, and negotiating and bidding strategies are frequently important.  Identify some fruitful areas for research in a B2B context.