Demarketing as a differentiation strategy |
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| Authors: | Eitan Gerstner James Hess Wujin Chu |
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| Institution: | (1) Department of Business Management, North Carolina State University, 27695-7229 Raleigh, North Carolina;(2) University of Haifa, Israel;(3) John M. Olin School of Business, Washington University, One Brookings Drive, Campus Box 1133, 63130-4899 St. Louis, MO;(4) Sloan School of Management, MIT, 50 Memorial Drive, 02139 Cambridge, MA;(5) Massachusetts Institute of Technology, USA |
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| Abstract: | Demarketing discourages consumers from buying. This paper shows that demarketing can be a profitable alternative when differentiation through product improvements is not cost effective. The impact of differentiating demarketing on profit, market share, consumers, and total welfare is investigated.This research began while Hess was visiting MIT's Sloan School of Management and was finished while visiting University of Haifa; he thanks both for their support. |
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| Keywords: | Demarketing Product Differentiation Pricing |
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