Flanking In A Price War
Article Main Points Summary
This article was written to analyze a pricing experiment in the Quebec, Canada grocery industry. The "Hometown Prowd" IGA supermarket chain was the pioneer and facilitator of the experiment.
The article's main focus is on the Steinberg grocery chain. Steinberg's was the market leader until approximately 1980. The beginning of the article also explains and provides a summary of each retailer's history. Steinberg's became notorious for slashing prices and creating many obstacles for competitors in the industry. Thus, the president of IGA used academic resources from the United States and Canada to help comprehend the price relationship between goods and price modifications. This research was performed so IGA could form the most effective pricing strategy for the market. Hudon and Deaudelin (owners of the IGA name in Quebec) did not want to utilize the normal, typical price reduction scheme used by most grocers.
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Approximate Word Count: 1996
Approximate Pages: 8 (250 words per double-spaced page)
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