Retailers can manipulate consumer regret to beat competitors

(University of California - Riverside) Markdown retailers can survive the entry of an everyday low price retailer into a highly competitive market by manipulating price, product availability, and the regret consumers feel when they pay too much or wait till a product is unavailable to buy it, according to a new study. The results explain why markdown pricing remains ubiquitous in spite of the simplicity and marketing and operational advantages of everyday low pricing.
Source: EurekAlert! - Social and Behavioral Science - Category: International Medicine & Public Health Source Type: news