Metin Çakir, Joseph V. Balagtas
Highlights: [�] We examine managerial implications of package downsizing. [�] We perform analysis on bulk ice cream purchases for a panel of households. [�] Consumers� differential sensitivity to price and package size is significant. [�] Consumers are about four times as sensitive to price as they are to package size. [�] Downsizing as a hidden price increase can maintain or increase profitability.
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