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/lp/emerald-publishing/pricing-strategies-in-highly-competitive-markets-Vk1YW7cm4J
- Publisher
- Emerald Publishing
- Copyright
- Copyright © Emerald Group Publishing Limited
- ISSN
- 0025-1747
- DOI
- 10.1108/00251749210014770
- Publisher site
- See Article on Publisher Site
Abstract
In most highly competitive markets, the use of certain strategicand tactical pricing practices is a key factor in determiningprofitability. Discusses the extent to which these practices can benefita firm. Evidence from research conducted in the markets of two groups ofindustrial distributors paper merchants and engineers distributorssuggests that price wars are inevitable under certain market conditions,and that a strong and defensible position in the market is a necessaryprerequisite for control of price levels. The purchase of market shareby investment, rather than competition, emerges as the preferredstrategy for firms wishing to make a longterm commitment to remainingin a highly competitive market.
Journal
Management Decision – Emerald Publishing
Published: Apr 1, 1992