About
Contact
Help
Sending publications
How to publish
Advanced Search
View Item 
  •   Home
  • Facultad de Ciencias Físicas y Matemáticas
  • Artículos de revistas
  • View Item
  •   Home
  • Facultad de Ciencias Físicas y Matemáticas
  • Artículos de revistas
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse byCommunities and CollectionsDateAuthorsTitlesSubjectsThis CollectionDateAuthorsTitlesSubjects

My Account

Login to my accountRegister
Biblioteca Digital - Universidad de Chile
Revistas Chilenas
Repositorios Latinoamericanos
Tesis LatinoAmericanas
Tesis chilenas
Related linksRegistry of Open Access RepositoriesOpenDOARGoogle scholarCOREBASE
My Account
Login to my accountRegister

Cross-Market Discounts

Artículo
Thumbnail
Open/Download
IconGoic_Marcel.pdf (365.8Kb)
Publication date
2011-02
Metadata
Show full item record
Cómo citar
Goic Figueroa, Marcel
Cómo citar
Cross-Market Discounts
.
Copiar
Cerrar

Author
  • Goic Figueroa, Marcel;
  • Jerath, Kinshuk;
  • Srinivasan, Kannan;
Abstract
Firms in several markets attract consumers by offering discounts in other unrelated markets. This promotion strategy, which we call “cross-market discounts,” has been successfully adopted in the last few years by many grocery retailers in partnership with gasoline retailers across North America, Europe, and Australia. In this paper, we use an analytical model to investigate the major forces driving the profitability of this novel promotion strategy. We consider a generalized scenario in which purchases in a source market lead to price discounts redeemable in a target market. Our analysis shows that this strategy can be a revenue driver by simultaneously increasing prices as well as sales in the source market, even though we assume the demand curve to be downward sloping in price. Moreover, it distributes additional consumption (motivated by the discount) in two markets, and under diminishing marginal returns from consumption, this can simultaneously increase firm profits and consumer welfare more effectively than traditional nonlinear pricing strategies. Our study provides many other interesting insights as well, and our key results are in accordance with anecdotal evidence obtained from managers and industry publications.
General note
Artículo de publicación ISI
Identifier
URI: https://repositorio.uchile.cl/handle/2250/125509
DOI: doi 10.1287/mksc.1100.0603
ISSN: 0732-2399
Quote Item
Vol. 30, No. 1, January–February 2011, pp. 134–148
Collections
  • Artículos de revistas
xmlui.footer.title
31 participating institutions
More than 73,000 publications
More than 110,000 topics
More than 75,000 authors
Published in the repository
  • How to publish
  • Definitions
  • Copyright
  • Frequent questions
Documents
  • Dating Guide
  • Thesis authorization
  • Document authorization
  • How to prepare a thesis (PDF)
Services
  • Digital library
  • Chilean academic journals portal
  • Latin American Repository Network
  • Latin American theses
  • Chilean theses
Dirección de Servicios de Información y Bibliotecas (SISIB)
Universidad de Chile

© 2020 DSpace
  • Access my account