Managers often state that they are reluctant to vary prices for fear of "antagonizing customers." However, there is no empirical evidence that antagonizing customers through price adjustments reduces demand or profits. We use a 28-month randomized field experiment involving over 50,000 customers...

We analyze data from a variety of sources, including historical data from a women's clothing catalog, a field study in that catalog, survey responses to catalog stimuli, and grocery store data for frozen juice, toothpaste, and tuna. The analysis yields three conclusions. First, sale signs are...

We use the results of three large-scale field experiments to investigate how the depth of a current price promotion affects future purchasing of first-time and established customers. While most previous studies have focused on packaged goods sold in grocery stores, we consider durable goods sold...

Sale signs increase demand. The apparent effectiveness of this simple strategy is surprising; sale signs are inexpensive to produce and stores generally make no commitment when using them. As a result, they can be placed on any products, and as many products, as stores prefer. If stores can...

We analyze a large-scale field test conducted with a mail-order catalog firm to investigate how customers react to premium prices for larger sizes of women's apparel. We find that customers who demand large sizes react unfavorably to paying a higher price than customers for small sizes. Further...