Kellogg on Marketing by Tybout Alice M. & Calder Bobby J. & Philip Kotler

Kellogg on Marketing by Tybout Alice M. & Calder Bobby J. & Philip Kotler

Author:Tybout, Alice M. & Calder, Bobby J. & Philip Kotler [Tybout, Alice M.]
Language: eng
Format: mobi
ISBN: 9780470877388
Publisher: Wiley
Published: 2010-08-04T16:00:00+00:00


Price and Promotional Discrimination Although economists maintain that the ability to charge different prices to different customers promotes efficiency by clearing the market, U.S. law has focused on ensuring the viability of numerous sellers as a means to preserve competition. Consequently, although price discrimination has been unlawful since 1914, the Robinson-Patman Act amended existing legislation in 1936 so that this entire area is commonly referred to by the name of the amendment. This complex Depression-era legislation was enacted to protect small businesses by outlawing discriminatory price and promotional allowances obtained by large ones, while exempting sales to government or “charitable” organizations for their own use. At the same time, the emergence of contemporary power buyers through consolidation and otherwise, as well as heightened marketplace competition in general, has forced sellers to offer account-specific pricing and promotions by creatively finding ways through the Robinson-Patman maze.



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