Price discrimination in retailing

Francisco Javier Rondán Cataluña (Department of Business Management and Marketing at the University of Seville, Seville, Spain)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Publication date: 1 April 2004

Abstract

In this paper, price and promotional selling variations for non‐durable goods in Spain are tested. An overview of price discrimination and promotional strategies for non‐durable goods is offered. In this study, the objective is to analyse how prices and promotional sales of different product categories vary between different geographical areas within Spain. An idea of the implementation of geographical price strategies and the application of micro‐marketing in frequent purchase product categories is also offered. The results of the multivariate analysis of the variance indicated that there were no significant differences in mean prices between the areas tested. However, significant differences did exist between promotional selling and promotional selling percentage using only price discounts.