Essay on Price Discrimination in Retailing - Essay Prowess

Essay on Price Discrimination in Retailing

Essay on Price Discrimination in Retailing

Abstract

Rondán Cataluña, (2004) study examines how retailers in various geographical areas in Spain use the discrimination of prices. The store level pricing approach is turning out to be increasingly essential to key retailers. The researcher used data provided by electronic scanners from different retailers and supermarkets in the regions of study. Data of goods previously sold was applied in the study. Moreover, multivariate ANOVA was used to determine the statistical difference of prices between various zones of the study. The study noted that pricing practices change between various metropolitan regions. The study revealed the statistical significant difference between various geographical areas in the use of promotional sales and price discounts. For instance, Barcelona metropolitan areas recorded higher rates of price discounts as compared to centre-east parts of the country. In this regard, the Barcelona metropolitan demonstrate higher competition intensity for various products. Similarly, the area may also illustrate the superior consumer’s sensitivity to prices of the products.

Keywords: Price discrimination, MANOVA, consumer, prices, products

Background

The article by Rondán Cataluña, (2004) examines the way discrimination of prices is useful in retailing. Precisely, it tested the variations of promotional and price selling for non-durable items in Spain. The researcher explored three mechanisms to integrate pricing strategy in various geographical areas, which include p

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