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Price-matching guarantees: Influences on pricing strategy in a market with asymmetric firms
- Authors
- Koh, Dong-Hee; Moon, Junyean; Schellhase, Ralf
- Issue Date
- Nov-2012
- Publisher
- Elsevier BV
- Keywords
- Price-matching guarantees; Price discrimination; Consumer loyalty
- Citation
- Journal of Business Research, v.65, no.11, pp.1551 - 1557
- Indexed
- SSCI
SCOPUS
- Journal Title
- Journal of Business Research
- Volume
- 65
- Number
- 11
- Start Page
- 1551
- End Page
- 1557
- ISSN
- 0148-2963
- Abstract
- This study analyzes the price effects of price-matching guarantees in a duopoly where consumers are heterogeneous with respect to firm loyalty, and a firm has more loyal customers than the other firm. The results show that equilibrium matching policy and pricing strategy depend on market conditions. Price-matching guarantees can result either in the form of price collusion or price discrimination. (C) 2011 Published by Elsevier Inc.
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Related Researcher
- Moon, Jun yean
- COLLEGE OF BUSINESS AND ECONOMICS (DIVISION OF BUSINESS ADMINISTRATION)