MAT 114 Lecture Notes - Lecture 6: Resale Price Maintenance, Geographical Pricing, Price Discrimination
30 Nov 2017
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Explain how legislation constrains a retailer"s pricing policies. Explain the retailer"s responsibilities regarding the products sold. Discuss the impact of government regulation on a retailer"s behavior with other supply chain members. Describe how various state and local laws, in addition to federal regulations, must be considered in developing retail policies. Explain how a retailer"s code of ethics will influence its behavior. A group of competing retailers (or other channel members operating at a given level of distribution) establish a fixed price at which to sell certain brands of products. A retailer collaborates with the manufacturer or wholesaler to resell an item at an agreed-on price; also called resale price maintenance or fair trade. Two retailers buy an identical amount of like grade and quality"" merchandise from the same supplier but pay different prices. A misleading price is used to lure customers into the store and then hidden charges are added; or the item advertised may be unavailable.
