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- W1985562010 abstract "Rao's paper provides an account of recent research published in the marketing literature on the subject of pricing. The paper contains an impressive bibliographic survey. However, the formal model proposed by the author as a framework for classifying and assessing the advances and needs in this area of marketing science is rather limited. A major shortcoming of this model, which appears to epitomize the marketing literature on pricing, is the treatment of prices and quantities as unidimensional. In other words, the model implicitly assumes that purchases of the product under consideration can be characterized by a scalar quantity denoting the number of units purchased, while the pricing of any such purchase is determined by a uniform unit price. This restriction severely limits the pricing strategies and product types that can be addressed within such a framework. For example, it excludes two-part tariffs and important classes of products involving metered usage, service contracts, etc. In spite of these deficiencies, I found the paper very educational. Its primary value is in highlighting the main research directions of pricing in the marketing literature and in conveying the importance of various pricing issues from the perspective of a leading marketing scientist. Taking Rao's survey as a reference point, I will attempt in the remainder of this discussion to examine the marketing perspective on pricing versus the approach prevailing in the economics literature dealing with pricing issues. In particular, I will try to identify some strengths and weaknesses of these approaches and to suggest possibilities for cross fertilization between the two disciplines. With a few possible exceptions, it is fair to say that the marketing literature on pricing typically focuses on developing pricing strategies for the firm and therefore treats prices as control variables. The economics literature, on the other hand, approaches pricing from the perspective of industrial organization theory. Its primary objectives are to" @default.
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- W1985562010 date "1984-01-01" @default.
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- W1985562010 title "Comments on Pricing Research in Marketing: The State of the Art" @default.
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- W1985562010 doi "https://doi.org/10.1086/296236" @default.
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