Fake sale promotions deceive consumers and can lead to stiff penalties for firms—yet the practice persists. Why?

Join host Adithya Pattabhiramaiah (Georgia Tech) as he interviews special guests Joe Urbany (University of Notre Dame), Donald Lichtenstein (University of Colorado), and Murali Mantrala (University of Kansas) about a recent Journal of Marketing study that examines the practice of deceptive pricing and proposes a regulation to protect consumers.

Reference: Richard Staelin, Joel E. Urbany, and Donald Ngwe, “Competition and the Regulation of Fictitious Pricing,” Journal of Marketing, 87 (6), 826–46. doi:10.1177/00222429231164640.

Read a detailed recap of this research: https://www.ama.org/2023/05/02/battling-deceptive-pricing-how-revealing-the-true-normal-price-can-protect-consumers/

Host: Adithya Pattabhiramaiah

Topics: pricing, consumer welfare, marketing, competition, reference prices, FTC, pricing regulation

The JM Buzz Podcast is a production of the American Marketing Association's Journal of Marketing and is produced by ⁠University FM