Background

1. LKM Chapter 4 (Price) and Chapter 7 (Promotion).

2. Kalyanaram, Gurumurthy and Russell W. Winer (1995), "Empirical Generalizations for Reference Price Research," Marketing Science, 14 (3), Part 2 of 2, G161-169. 

   1. A useful review of the literature is provided by:  Tridib Mazumdar, S.P. Raj, and Indrajit Sinha (2005), "Reference Price Research: Review and Propositions," Journal of Marketing, 69 (4), 84-102. 

   2. There is also an older review of reference price models by some of the same authors:  Briesch, R. A., L. Krishnamurthi, T. Mazumdar, S. P. Raj (1997), "A Comparative Analysis of Reference Price Models," Journal of Consumer Research, 24 (2), 202-214.

   3. There is a conceptually related literature on price fairness, such as: Bolton, Lisa E., Luc Warlop, and Joseph W. Alba (2003), "Perceptions of Price (Un) Fairness," Journal of Consumer Research, 29 (4), 474-491.

3. Grewal, Dhruv and Larry Compeau (2007), "Consumer Responses to Price and Its Contextual Information Cues: A Synthesis of Past Research, a Conceptual Framework, and Avenues for Further Research," Review of Marketing Research, Volume 3, Chapter 4.

Supplier Perspective on Price

4. Varian, Hal R. "A Model of Sales" The American Economic Review 4 (1980): 651-659.

5. Bakos, Yannis and Erik Brynjolfsson (1999), "Bundling Information Goods: Pricing, Profits, and Efficiency," Management Science, 45 (12), 1613-1630. 1999 John D. C. Little Award

Market Place Reaction to Price and Promotion

6. Bell, David R. and James M. Lattin (2000), "Looking for Loss Aversion in Scanner Panel Data," Journal of Marketing Research, 19 (2), 185-200.  1999 Frank M. Bass Dissertation Paper Award Winner

7. Gupta, Sunil (1988), "Impact of Sales Promotions on When, What, and How Much to Buy," Journal of Marketing Research, 25, (4), 342-355.  O'Dell Award Winner.   See also: 

   1. Gupta, Sunil (1993), "Reflections on Impact of Sales Promotions..." Journal of Marketing Research, 30 (4), 522-24.  [This article is an essay written after he won the O'Dell Award for this paper.]

   2. van Heerde, Harald J., Peter S.H. Leeflang, and Dick R. Wittink (2000), "The Estimation of Pre- and Post- Promotion Dips with Store-Level Scanner Data," Journal of Marketing Research, 37 (3), 383-395. Co-winner of the 2004 Paul E. Green Award

   3. Pauwels, Koen, Dominique Hanssens, 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.   2007 William F. O'Dell Award

8. van Heerde, Harald J., Sachin Gupta and Dick R. Wittink (2003), "Is 75% of the Sales Promotion Bump Due to Brand Switching?  No.  Only 33% Is."  Journal of Marketing Research, 40 (4).  2008 William F. O'Dell Award

9. Srinivasan, S., K. Pauwels, D. M. Hanssens, and M. G. Dekimpe. "Do Promotions Benefit Manufacturers, Retailers, or Both?" Management Science 50 (2004): 617-629.

10. Zettelmeyer, Florian, Fiona M. Scott Morton, and Jorge Silva-Risso (2006), "How the Internet Lowers Prices: Evidence from Matched Survey and Automobile Transaction Data," Journal of Marketing Research, 43 (2).  2007 Paul H. Green Award

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.  Are other psychological theories relevant? Discuss.

2. What are some opportunities to incorporate psychological constructs into models of market place reactions to deals?

3. 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.

4. Choose a game theoretic model (e.g., Agarawal's (1996) article on Trade Promotions) and explain how you would rigorously test its propositions.

1. Write a critical review of two articles.

2. Write a two or three page (double-spaced) answer to one of the discussion questions.