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Essay

Flanking ina Price War

Essay specific features

 

Issue:

Business

 

Written by:

Joan C

 

Date added:

October 20, 2015

 

Level:

University

 

Grade:

B

 

No of pages / words:

7 / 1681

 

Was viewed:

5626 times

 

Rating of current essay:

 
Essay content:

This was followed by several examples of how local legislation, and environmental factors kept many of the smaller independent stores and chains in business and clawing for market share. In 1983, it became obvious to most observers that a price war would soon ensue, and most likely be initiated by Steinberg...
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One firm, Hudon and Deaudelin, wanted to be prepared in the face of such a price war and had a study based on pricing experiments performed. To summarize, the experiment was performed and found that different price elasticities existed for differing products. The difference was mainly in the products ability to be stored for long periods of time, and that by raising prices of stock-up items and lowering the prices of non stock-up items, one could minimize the loss to margin and continue to fund the price war...
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