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Mark-Down Pricing: The Study of an Indian Fashion Retailer
Abstract
Discount sales have been increasing in Indian retailing due to the growing competition in the sector. In this research the authors analyze the data of a fashion retail store to study the effect of mark-down pricing on the sales. Their store level analysis shows that mark-downs have a positive impact on sales in an aggregate level. At a style level, however, some items showed a negative and significant effect on sales. This negative influence is explained by the predominant focus of the Store to attract high end customers characterized by conspicuous consumption.
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