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Cosmetics,” Journal of Economic Psychology 19<br />

(January 1998), pp. 107–31.<br />

23. Mark Stiving and Russell S. Winer, “An Empirical<br />

Analysis of Price Endings with Scanner Data,” Journal<br />

of Consumer Research 24 (June 1997), pp. 57–68.<br />

24. Eric T. Anderson and Duncan Simester, “Effects of $9<br />

Price Endings on Retail Sales: Evidence from Field<br />

Experiments,” Quantitative <strong>Marketing</strong> and Economics 1<br />

(March 2003), pp. 93–110.<br />

25. Eric Anderson and Duncan Simester, “Mind Your<br />

Pricing Cues,” Harvard Business Review, September<br />

2003, pp. 96–103.<br />

26. Robert M. Schindler and Patrick N. Kirby, “Patterns of<br />

Rightmost Digits Used in Advertised Prices:<br />

Implications for Nine-Ending Effects,” Journal of<br />

Consumer Research 24 (September 1997),<br />

pp. 192–201.<br />

27. Anderson and Simester, “Mind Your Pricing Cues,”<br />

Harvard Business Review, September 2003,<br />

pp. 96–103.<br />

28. Ibid.<br />

29. Daniel J. Howard and Roger A. Kerin, “Broadening the<br />

Scope of Reference-Price Advertising Research: A<br />

Field Study of Consumer Shopping Involvement,”<br />

Journal of <strong>Marketing</strong> 70 (October 2006), pp. 185–204.<br />

30. Robert C. Blattberg and Kenneth Wisniewski,<br />

“Price-Induced Patterns of Competition,” <strong>Marketing</strong><br />

Science 8 (Fall 1989), pp. 291–309; Katherine<br />

N. Lemon and Stephen M. Nowlis, “Developing<br />

Synergies between Promotions and Brands in<br />

Different Price-Quality Tiers,” Journal of <strong>Marketing</strong><br />

Research 39 (May 2002), pp. 171–85; but see also,<br />

Serdar Sayman, Stephen J. Hoch, and Jagmohan<br />

S. Raju, “Positioning of Store Brands,” <strong>Marketing</strong><br />

Science 21 (Fall 2002), pp. 378–97.<br />

31. Shantanu Dutta, Mark J. Zbaracki, and Mark Bergen,<br />

“Pricing Process as a Capability: A Resource-Based<br />

Perspective,” Strategic <strong>Management</strong> Journal 24<br />

(July 2003), pp. 615–30.<br />

32. “To All iPhone Customers,” Apple Inc., www.apple.com/<br />

hotnews/openiphoneletter; Gary F. Gebhardt, “Price<br />

Skim<strong>min</strong>g’s Unintended Consequences,” <strong>Marketing</strong><br />

Science Institute Working Paper Series, MSI Report<br />

No. 09-109.<br />

33. Michael Silverstein and Neil Fiske, Trading Up: The<br />

New American Luxury (New York: Portfolio, 2003).<br />

34. Christopher Lawton, “A Liquor Maverick Shakes Up<br />

Industry with Pricey Brands,” Wall Street Journal, May<br />

21, 2003.<br />

35. Timothy Aeppel, “Seeking Perfect Prices, CEO Tears<br />

Up the Rules,” Wall Street Journal, March 27, 2007.<br />

36. Florian Zettelmeyer, Fiona Scott Morton, and Jorge<br />

Silva-Risso, “How the Internet Lowers Prices: Evidence<br />

from Matched Survey and Automobile Transaction<br />

Data,” Journal of <strong>Marketing</strong> Research 43 (May 2006),<br />

pp. 168–81; Jeffrey R. Brown and Austan Goolsbee,<br />

“Does the Internet Make Markets More Competitive?<br />

Evidence from the Life Insurance Industry,” Journal<br />

of Political Economy 110 (October 2002),<br />

pp. 481–507.<br />

37. Joo Heon Park and Douglas L. MacLachlan,<br />

“Estimating Willingness to Pay with Exaggeration Bias-<br />

Corrected Contingent Valuation Method,” <strong>Marketing</strong><br />

Science 27 (July–August 2008), pp. 691–98.<br />

38. Walter Baker, Mike Marn, and Craig Zawada, “Price<br />

Smarter on the Net,” Harvard Business Review,<br />

February 2001, pp. 122–27.<br />

39. Brian Bergstein, “The Price Is Right,” Associated Press,<br />

April 29, 2007.<br />

40. Thomas T. Nagle and Reed K. Holden, The Strategy<br />

and Tactics of Pricing, 3rd ed. (Upper Saddle River,<br />

NJ: Prentice Hall, 2002).<br />

41. For a summary of elasticity studies, see Do<strong>min</strong>ique<br />

M. Hanssens, Leonard J. Parsons, and Randall L.<br />

Schultz, Market Response Models: Econometric<br />

and Time Series Analysis (Boston: Kluwer, 1990),<br />

pp. 187–91.<br />

42. Tammo H. A. Bijmolt, Harald J. Van Heerde, and Rik G.<br />

M. Pieters, “New Empirical Generalizations on the<br />

Deter<strong>min</strong>ants of Price Elasticity,” Journal of <strong>Marketing</strong><br />

Research 42 (May 2005), pp. 141–56.<br />

43. William W. Alberts, “The Experience Curve Doctrine<br />

Reconsidered,” Journal of <strong>Marketing</strong> 53 (July 1989),<br />

pp. 36–49.<br />

44. Michael Sivy, “Japan’s Smart Secret Weapon,”<br />

Fortune, August 12, 1991, p. 75.<br />

45. Joseph Weber, “Over a Buck for Dinner? Outrageous,”<br />

BusinessWeek, March 9, 2009, p. 57.<br />

46. Reena Jane, “From India, the Latest <strong>Management</strong><br />

Fad,” Bloomberg BusinessWeek, December 14, 2009,<br />

p. 57; Julie Jargon, “General Mills Takes Several Steps<br />

to Combat High Commodity Costs,” Wall Street<br />

Journal, September 20, 2007; Mina Kimes, “Cereal<br />

Cost Cutters,” Fortune, November 10, 2008, p. 24.<br />

47. Jack Ewing, “The Next Wal-Mart?” BusinessWeek,<br />

April 26, 2004, pp. 60–62; “German Discounter Aldi<br />

Aims to Profit from Belt-Tightening in US,” DW<br />

World.de, www.dw-world.de, January 15, 2009; Aldi,<br />

www.aldi.com.<br />

48. “Green Works Natural Cleaners and Sierra Club<br />

Celebrate Two Year Anniversary; Doubling of<br />

Natural Cleaning Category,” Green Works,<br />

www.greenworkscleaners.com, June 28, 2010; “This or<br />

That? Clorox Greenworks Cleaning Up in the Market<br />

Tip of the Day,” Green Daily, www.greendaily.com,<br />

January 24, 2009; “Annual GMA Award Recognizes<br />

Clorox and Kettle Foods for Innovation and Creativity,”<br />

GMA, www. gmaonline.org/awardssurvey/cpg.cfm,<br />

August 5, 2008.<br />

49. Kusum L. Ailawadi, Donald R. Lehmann, and Scott A.<br />

Neslin, “Market Response to a Major Policy Change in<br />

the <strong>Marketing</strong> Mix: Learning from Procter & Gamble’s<br />

Value Pricing Strategy,” Journal of <strong>Marketing</strong> 65<br />

(January 2001), pp. 44–61.<br />

50. Timothy Aeppel, “Seeking Perfect Prices, CEO Tears<br />

Up the Rules,” Wall Street Journal, March 27, 2007;<br />

Endnotes<br />

E39

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