Notes

1. Amy E. Cortese, "Good-Bye to Fixed Pricing?" Business Week, May 4, 1998, pp. 71-84.

2. Steve Gelsi, "Spin-Cycle Doctor," Brandweek, March 10, 1997, pp. 38-40; Tim Stevens, "From Reliable to 'Wow,'" Industry Week, June 22, 1998, pp. 22-26.

3. Thomas T. Nagle and Reed K. Holden, The Strategy and Tactics of Pricing 2d ed. (Upper Saddle River, NJ: Prentice-Hall, 1995), ch. 4. This is an excellent reference book for making pricing decisions.

4. Kevin J. Clancy, "At What Profit Price?" Brandweek, June 23, 1997, pp. 24-28; "GreenMountain.com Begins Supplying Cleaner Electricity to Pennsylvania State Government," PRNewswire, January 4, 2000.

5. See Sidney Bennett and J. B. Wilkinson, "Price-Quantity Relationships and Price Elasticity Under In-Store Experimentation," Journal of Business Research, January 1974, pp. 30-34.

6. John R. Nevin, "Laboratory Experiments for Estimating Consumer Demand—A Validation Study," Journal of Marketing Research, August 1974, pp. 261-68; and Jonathan Weiner, "Forecasting Demand: Consumer Electronics Marketer Uses a Conjoint Approach to Configure Its New Product and Set the Right Price," Marketing Resear^ch: A Magazine of Management & Applications, Summer 1994, pp. 6-11.

7. An excellent summary of the various methods for estimating price sensitivity and demand can be found in Nagle and Holden, The Strategy and Tactics of Pricing, ch. 13.

8. For summary of elasticity studies, see Dominique M. Hanssens, Leonard J. Parsons, and Randall L. Schultz, Market Response Models: Econometric and Time Series Analysis (Boston: Kluwer Academic Publishers, 1990), pp. 187-91.

9. See Robin Cooper and Robert S. Kaplan, "Profit Priorities from Activity-Based Costing," Harvard Business Review, May-June 1991, pp. 130-35. For more on ABC, see ch. 24.

10. See "Japan's Smart Secret Weapon," Fortune, August 12, 1991, p. 75.

11. Tung-Zong Chang and Albert R. Wildt, "Price, Product Information, and Purchase Intention: An Empirical Study," Journal of the Academy of Marketing Science, Winter 1994, pp. 16-27. See also G. Dean Kortge and Patrick A. Okonkwo, "Perceived Value Approach to Pricing," Industrial Marketing Management, May 1993, pp. 133-40.

12. For an empirical study of nine methods used by companies to assess customer value, see James C. Anderson, Dipak C. Jain, and Pradeep K. Chintagunta, "Customer Value Assessment in Business Markets: A State-of-Practice Study," Journal ofBusiness-to-Business Marketing 1, no. 1 (1993): 3-29.

13. Roger Crockett, "PC Makers Race to the Bottom," Business Week, October 12, 1998, p. 48; Patricia Fusco, "Emachines, FreePC to Merge," InternetNews.com, November 30, 1999, www.internetnews.com.

14. Stephen J. Hoch, Xavier Dreze, and Mary J. Purk, "EDLP, Hi-Lo, and Margin Arithmetic," Journal of Marketing, October 1994, pp. 16-27; Rajiv Lal and R. Rao, "Supermarket Competition: The Case of Everyday Low Pricing," Marketing Science 16, no. 1 (1997); 60-80.

15. Becky Bull, "No Consensus on Pricing," Progressive Grocer, November 1998, pp. 87-90.

16. Gary M. Erickson and Johny K. Johansson, "The Role of Price in Multi-Attribute Product-Evaluations," Journal ofConsumer Research, September 1985, pp. 195-99.

17. K. N. Rajendran and Gerard J. Tellis, "Contextual and Temporal Components of Reference Price," Journal of Marketing, January 1994, pp. 22-34.

18. Paul W. Farris and David J. Reibstein, "How Prices, Expenditures, and Profits Are Linked," Harvard Business Review, November-December 1979, pp. 173-84. See also Makoto Abe, "Price and Advertising Strategy of a National Brand Against Its Private-Label Clone: A Signaling Game Approach," Journal of Business Research, July 1995, pp. 241-50.

19. See Michael Rowe, Countertrade (London: Euromoney Books, 1989); P. N. Agarwala, Countertrade: A Global Perspective (New Delhi: Vikas Publishing House, 1991); and Christopher M. Korth, ed., International Countertrade (New York: Quorum Books, 1987).

20. See Michael V. Marn and Robert L. Rosiello, "Managing Price, Gaining Profit," Harvard Business Review, September-October 1992, pp. 84-94. See also Gerard J. Tellis, "Tackling the Retailer Decision Maze: Which Brands to Discount, How Much, When, and Why?" Marketing Science 14, no. 3, pt. 2 (1995); 271-99.

21. For more information on specific types of price discrimination that are illegal, see Henry R. Cheeseman, Contemporary Business Law (Upper Saddle River, NJ: Prentice-Hall, 2000).

22. Clint Boulton, "Priceline Unleashes Long Distance Service," E-Commerce News, November 8, 1999, www.internetnews.com; "What Am I Bid for These Old LPs?" Business Week, January 10, 2000, p. 57.

23. See Robert E. Weigand, "Buy In-Follow On Strategies for Profit," Sloan Management Review, Spring 1991, pp. 29-37.

24. Susan Krafft, "Love, Love Me Doo," American Demographics, June 1994, pp. 15-16.

25. See Gerald J. Tellis, "Beyond the Many Faces of Price: An Integration of Pricing Strategies," Journal of Marketing, October 1986, p. 155. This excellent article also analyzes and illustrates other pricing strategies.

26. For an excellent review, see Kent B. Monroe, "Buyers' Subjective Perceptions of Price," Journal of Marketing Research, February 1973, pp. 70-80.

SECTION FIVE

Selecting and Managin Marketin Channels

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