HUI Working Papers, HUI Research
Defining the links between retail price strategies and price tactics
() and Sabine Gebert-Persson
Abstract: Retailers’ tend to become trapped in a price-promotion war
where price issues are dealt with on a short-term basis, indicating almost
solely tactical choices. Since price is the only part of the marketing mix
providing direct revenues to the organisation, it should also be of
strategic importance for the retailer. Not only in practice are price
tactics often separated from pricing strategies, it is also the case in
research where these are often studied in isolation from each other
probably due to their individual complexity. This paper contributes to both
the research area and practice by discussing these two complex areas
together, and the essence of both strategy and tactics are defined. By
considering the planning horizon for the retailer this paper further
contributes by defining the links between price strategy and price tactic.
The conclusion shows the importance of clearly establishing which
analytical level is being analysed.
Keywords: retailing; price; strategy; tactic; analytical levels; (follow links to similar papers)
JEL-Codes: M00; M10; M19; M30; M31; M37; (follow links to similar papers)
17 pages, March 20, 2015
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