Effect of Price-Discount Distribution in Multi-Unit Price Promotions on Sales Value and retailers’ revenue: Evidence from Multi-Unit Auctions

Using multi-unit auctions, we examined the effect of different distributions of price discount across multiple units of a relatively new product on consumers’ Willingness to Pay (WTP), sales value and retailers’ revenue. We found that allowing the price discount to be increasing in the number of units largely increases willingness to pay, sales value and retailers’ revenue and that a price discount that is uniformly distributed across units also has the potential to motivate consumers to buy more units of the new product. However, multi-unit price promotions that concentrate all the amount of price discount on the last unit only provides a weak positive effect on sales value.


Issue Date:
2012
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/126487
Page range:
1-2
Total Pages:
2
JEL Codes:
C910; D120; M310
Series Statement:
Poster
14874




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)