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Using price discrimination theory to plan promotions
Author(s) -
Larson Ronald B.
Publication year - 1997
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/(sici)1520-6297(199707/08)13:4<401::aid-agr6>3.0.co;2-2
Subject(s) - plan (archaeology) , promotion (chess) , economics , agribusiness , microeconomics , price discrimination , marketing , business , agriculture , law , history , ecology , archaeology , politics , biology , political science
Serious mistakes can be made by agribusiness marketers if they ignore the potential leakages between segments when they plan price promotions. The model illustrated in this paper considers leakages along with communication spending and nonparticipation by potential buyers to find the optimal list and discount prices for a promotion. © 1997 John Wiley & Sons, Inc.