The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
Market Segmentation, Self-Selection, and Product Line Design
Abstract
The purpose of this paper is to develop a theory of market segmentation based on consumer self-selection. The extant theory is based on the third-degree price discrimination model of Pigou, central assumptions of which are that the firm can directly address individual segments and isolate them. By using consumer self-selection, I am relaxing these assumptions. In the context of a monopolist designing a product line, I show that this relaxation has significant implications for how the products and prices are chosen and what they look like. In particular, segments may be aggregated even though there are no economies of scale. Furthermore, consumer self-selection enables us to model “cannibalization” and competition among firms.
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Citations
Cites
The Market for "Lemons": Quality Uncertainty and the Market Mechanism
Akerlof, G. A. (1970) · The Quarterly Journal of Economics · doi:10.2307/1879431 · Cited by 23,016
Mussa, M., & Rosen, S. (1978) · Journal of Economic Theory · doi:10.1016/0022-0531(78)90085-6 · Cited by 3,306
Cited by
The Internet-of-Things: Review and research directions
Ng, I. C. L., & Wakenshaw, S. Y. L. (2017) · International Journal of Research in Marketing · doi:10.1016/j.ijresmar.2016.11.003 · Cited by 621
Inventory Record Inaccuracy: An Empirical Analysis
DeHoratius, N., & Raman, A. (2008) · Management Science · doi:10.1287/mnsc.1070.0789 · Cited by 432
How Does Product Recovery Affect Quality Choice?
Atasu, A., & Souza, G. C. (2013) · Production and Operations Management · doi:10.1111/j.1937-5956.2011.01290.x · Cited by 323
E-retailing versus physical retailing
Lee, K. S., & Tan, S. J. (2003) · Journal of Business Research · doi:10.1016/s0148-2963(01)00274-0 · Cited by 232
On the monetization of mobile apps
Appel, G., Libai, B., Muller, E., & Shachar, R. (2020) · International Journal of Research in Marketing · doi:10.1016/j.ijresmar.2019.07.007 · Cited by 90
“Our work is also relevant to the literature on product line design (Biyalogorsky & Koenigsberg, 2014; Gu et al., 2018; Kannan, 2013; Moorthy, 1984; Moorthy & Png, 1992).”
Metadata
- Authors
- Moorthy, K. S.
- Venue
- Marketing Science
- Published
- 1984-11
- Volume
- 3
- Issue
- 4
- Pages
- 288-307
- ISSN
- 0732-2399 (ISSN-L)
- 1526-548X
- OpenAlex
- W2104852617
- Cited by
- 703
- References
- 2
- FWCI
- 12.79
- Type
- journal article
- Language
- en
- Open access
- closed
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
