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Published in:
2015 | OriginalPaper | Chapter
Optimal Pricing in Tiered Markets
Author : K. Sivakumar
Published in: Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference
Publisher: Springer International Publishing
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One explanation for the phenomenon of asymmetric inter-tier competition is based on the notion of price–quality trade-offs. In this article, we extend the framework to derive new results for differential pricing strategies for brands in different tiers and demonstrate these results for different market configurations. The article makes two unique and important contributions. First, the article derives and demonstrates several pricing strategy implications that are useful for academic researchers and marketing managers. Second, this research extends the theoretical explanation to realistic market configurations consisting of more than two brands.