dc.contributor.author | Simester, Duncan | |
dc.contributor.author | Anderson, Eric T. | |
dc.date.accessioned | 2010-09-30T19:43:08Z | |
dc.date.available | 2010-09-30T19:43:08Z | |
dc.date.issued | 2010-05 | |
dc.date.submitted | 2010-04 | |
dc.identifier.issn | 0033-5533 | |
dc.identifier.issn | 1531-4650 | |
dc.identifier.uri | http://hdl.handle.net/1721.1/58801 | |
dc.description.abstract | Managers often state that they are reluctant to vary prices for fear of “antagonizing customers.” However, there is no empirical evidence that antagonizing customers through price adjustments reduces demand or profits. We use a 28-month randomized field experiment involving over 50,000 customers to investigate how customers react if they buy a product and later observe the same retailer selling it for less. We find that customers react by making fewer subsequent purchases from the firm. The effect is largest among the firm's most valuable customers: those whose prior purchases were most recent and at the highest prices. | en_US |
dc.language.iso | en_US | |
dc.publisher | MIT Press | en_US |
dc.relation.isversionof | http://dx.doi.org/10.1162/qjec.2010.125.2.729 | en_US |
dc.rights | Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. | en_US |
dc.source | MIT Press | en_US |
dc.title | PRICE STICKINESS AND CUSTOMER ANTAGONISM | en_US |
dc.type | Article | en_US |
dc.identifier.citation | Anderson, Eric T., and Duncan I. Simester. “Price Stickiness and Customer Antagonism*.” Quarterly Journal of Economics 125.2 (2010): 729-765. © 2010 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology. | en_US |
dc.contributor.department | Sloan School of Management | en_US |
dc.contributor.approver | Simester, Duncan | |
dc.contributor.mitauthor | Simester, Duncan | |
dc.contributor.mitauthor | Anderson, Eric T. | |
dc.relation.journal | Quarterly Journal of Economics | en_US |
dc.eprint.version | Final published version | en_US |
dc.type.uri | http://purl.org/eprint/type/JournalArticle | en_US |
eprint.status | http://purl.org/eprint/status/PeerReviewed | en_US |
dspace.orderedauthors | Anderson, Eric T.; Simester, Duncan I. | en |
dc.identifier.orcid | https://orcid.org/0000-0003-2758-0116 | |
mit.license | PUBLISHER_POLICY | en_US |
mit.metadata.status | Complete | |