Increase in Retail Buying Power and its Impact on Pricing Strategies

Authors

  • Mariana Nascimento Bicalho Universidade de São Paulo
  • Kavita Miadaira Hamza Universidade de São Paulo
  • Marcos Roberto Luppe Universidade de São Paulo

DOI:

https://doi.org/10.23925/2178-0080.2017v20i2.36562

Keywords:

Retail, Pricing, Brand Positioning, Buying Power

Abstract

The objective of this study is to analyze the positioning and pricing strategies of certain product categories and conclude if there are discrepancies between the pricing strategies that companies recommend and the price that is practiced in large retail chains, and hence their impact on the positioning of these products in comparison with the competition. Data collection consisted in data on positioning and pricing strategies of two brands of the company analyzed, and collection of secondary data on sales volume and average prices practiced in retail. The results revealed that the incorrect positioning of the products can negatively impact the profitability of some products and categories as well as damage the brand image. Factors identified as determining the impacts of price changes were price elasticity, price-quality relation and brand differentiation.

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Author Biographies

Mariana Nascimento Bicalho, Universidade de São Paulo

Bacharel em Administração pela Universidade de São Paulo

Kavita Miadaira Hamza, Universidade de São Paulo

Professora da Universidade de São Paulo – USP. Doutora em Administração pela Universidade de São Paulo – USP.

Marcos Roberto Luppe, Universidade de São Paulo

Professor da Universidade de São Paulo – USP. Doutor em Administração pela Universidade de São Paulo – USP

Published

2018-05-05

How to Cite

Bicalho, M. N., Hamza, K. M., & Luppe, M. R. (2018). Increase in Retail Buying Power and its Impact on Pricing Strategies. Management in Dialogue Review, 20(2), 70–93. https://doi.org/10.23925/2178-0080.2017v20i2.36562