Competitive price-cutting momentum and pricing reactions Article

Urbany, JE, Dickson, PR. (1991). Competitive price-cutting momentum and pricing reactions . MARKETING LETTERS, 2(4), 393-402. 10.1007/BF00664225

cited authors

  • Urbany, JE; Dickson, PR



  • In light of the increasing interest in understanding the behavioral side of competitive decision making, this paper examines how the "price-cutting momentum" (PCM) created by other competiors' reactions to an initiator's price cut influences pricing decisions. We explore the PCM construct and present the results of a study examining the effect of PCM on the price recommendations of retail grocery pricing executives. We find that PCM influences pricing reactions in both low-search and high-search markets. Competing explanations of the results are considered. © 1991 Kluwer Academic Publishers.

publication date

  • November 1, 1991

published in

Digital Object Identifier (DOI)

start page

  • 393

end page

  • 402


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