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AbstractPricing is a critically important management activity with major strategic and operational implications. However, pricing is a much-neglected and ineptly administered marketing responsibility, and numerous errors are made. A prime reason for this is that firms are preoccupied with the use of convenient, often singularly cost-based, pricing methods that fail to assimilate the impact of the full range of effective pricing determinants. This article introduces the concept of the pricing wheel that is a multistage process for effective price management. It provides a systematic means for analyzing and incorporating into decision making the strategic role of price, pricing objectives, the plethora of internal and external pricing determinants, pricing strategy, the pricing technique, and the necessary implementation and control procedures. As a key element of the pricing process, the article advocates utilization of an integrative pricing technique, and it proposes a logical sequence in which it can be applied.
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CitationJobber, D. and Shipley, D. (2001). Integrative pricing via the pricing wheel. Industrial Marketing Management. Vol. 30, No. 3, pp. 301-314.
Link to publisher’s versionhttp://dx.doi.org/10.1016/S0019-8501(99)00098-X
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Online expansion: is it another kind of strategic manufacturer response to a dominant retailer?He, R.; Xiong, Y.; Cheng, Y.; Hou, Jiachen (2016)The issues of channel conflict and channel power have received widespread research attention, including Geylani et al.’s (2007) work on channel relations in an asymmetric retail setting. Specifically, these authors suggest that a manufacturer can respond to a dominant retailer’s pricing pressure by raising the wholesale price for a weak retailer over that for the dominant retailer while transferring demand to the weak retailer channel via cooperative advertising. But, is online expansion another kind of strategic manufacturer’s optimal response to a dominant retailer? In this paper, we extend this work by adding a direct online selling channel to illustrate the impact of the manufacturer’s internet entry on firms’ demands, profits, and pricing strategies and on consumer welfare. Our analysis thus includes a condition in which the manufacturer can add an online channel. If such an online channel is opened, the channel-supported network externality will always benefit the manufacturer but hurt the retailers. Consumers, however, will only benefit from the network externality when a dominant retailer is present and will be hurt when both retailers are symmetric.
Systematic Liquidity Risk and Stock Price Reaction to Large One-Day Price Changes: Evidence from London Stock Exchange.Mazouz, Khelifa; Alrabadi, Dima W.H. (University of BradfordSchool of Management, 2010-06-04)This thesis investigates systematic liquidity risk and short-term stock price reaction to large one-day price changes. We study 642 constituents of the FTSALL share index over the period from 1st July 1992 to 29th June 2007. We show that the US evidence of a priced systematic liquidity risk of Pastor and Stambaugh (2003) and Liu (2006) is not country-specific. Particularly, systematic liquidity risk is priced in the London Stock Exchange when Amihud's (2002) illiquidity ratio is used as a liquidity proxy. Given the importance of systematic liquidity risk in the asset pricing literature, we are interested in testing whether the different levels of systematic liquidity risk across stocks can explain the anomaly following large one-day price changes. Specifically, we expect that the stocks with high sensitivity to the fluctuations in aggregate market liquidity to be more affected by price shocks. We find that most liquid stocks react efficiently to price shocks, while the reactions of the least liquid stocks support the uncertain information hypothesis. However, we show that time-varying risk is more important than systematic liquidity risk in explaining the price reaction of stocks in different liquidity portfolios. Indeed, the time varying risk explains nearly all of the documented overreaction and underreaction following large one-day price changes. Our evidence suggests that the observed anomalies following large one-day price shocks are caused by the pricing errors arising from the use of static asset pricing models. In particular, the conditional asset pricing model of Harris et al. (2007), which allow both risk and return to vary systematically over time, explain most of the observed anomalies. This evidence supports the Brown et al. (1988) findings that both risk and return increase in a systematic fashion following price shocks.
Impact of oil revenue volatility on the real exchange rate and the structure of economy: Empirical evidence of “Dutch disease” in IraqJalilian, Hossein; Shepotylo, Oleksandr; Yaqub, Kamaran Q.This thesis analyses the extent to which a boom in a particular export commodity sector (i.e., oil) affects relative price of non-tradable goods against tradable goods, the real exchange rate and competitiveness in the rest of the economy: This problem has been analysed in the early stage by (Corden and Neary 1982) with the so-called ‘Dutch-disease’. As a result, booming sector (oil Sector) the country’s currency appreciates, thereby reducing the competitiveness of the country’s traditional export sector in international market. This thesis examines whether Dutch Disease is present in Iraq in the light of having not study about Dutch Disease phenomena. It evaluates the impact of growing oil revenues on non-oil sectors of the Iraqi economy. It produces some empirical evidence for the explanation non-tradable goods and contraction of tradable goods sector due to booming oil sector and appreciation real exchange rate and made tradable goods sector become uncompetitive for export. The main findings form this thesis that the Iraqi economy was subject to have the Dutch disease phenomena during the boom. Some of the indications of the disease, remarkably the increase of relative prices, the real exchange rate appreciation, contraction tradable goods sector and expansion of nontraded goods output were applicable. The study uses annual time series data sourced from home and international agencies from 1970 to 2013. Due to problem with endogeneity, the data are analysed through the use of two stages least square. Finally, the thesis discusses briefly some policy measures that will help avoid the issue of appreciation real exchange rate and changing the structure of economy out of tradable goods to non-tradable goods sector.