ISSN:
1573-059X
Keywords:
Stockpiling
;
promotion environment
;
deal opportunities
;
deal discounts
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract The objective of this note is to gain new theoretical insights into stockpiling phenomena. The model used to derive our results envisions consumers as responding optimally to uncertainties in the promotion environment. We show that, all else being equal, consumers will stockpile a promoted product more intensely: (i) the lower the availability of deal opportunities, (ii) the smaller the expected deal discount, and (iii) the lower the uncertainty about the deal/regular price, provided that dealing occurs with high/low frequency.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF00994076
Permalink