Highlow pricing audit evidence and consumer preferences

In spite of their importance within pricing strategies, seasonal sales have received little attention within the literature. The recent interest in highlow pricing has, however, increased the attention given to temporal shifts in storewide, rather than item level, prices. Following a brief review, t...

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Bibliographic Details
Published in:Journal of Product & Brand Management 2000, Vol.9 (5), p.316-331
Main Authors: McGoldrick, Peter J., Betts, Erica J., Keeling, Kathy A.
Format: Report
Language:English
Subjects:
Consumer behaviour
Pricing
Retailing
Sales promotion
Seasonal trends
Online Access:Get full text
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Summary:In spite of their importance within pricing strategies, seasonal sales have received little attention within the literature. The recent interest in highlow pricing has, however, increased the attention given to temporal shifts in storewide, rather than item level, prices. Following a brief review, this paper draws upon two case studies of leading retailers of apparel in the UK. Evidence is also presented from audits of pricing and markdown activities over a threeyear period, illustrating some contrasts between stated strategies and actual pricing activities. A costbenefit analysis of highlow pricing requires knowledge of consumer preferences and attitudes. Results are drawn from a study of over 2,600 sale shoppers, indicating stated preferences for markdown frequency, depth and coverage. In general sale shoppers appear to prefer a variety of markdown levels, increasing their scope to succeed as bargain hunters.
ISSN:1061-0421
DOI:10.1108/10610420010347119