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Title: MANAGERIAL AND CUSTOMER COSTS OF PRICE ADJUSTMENT:

Essay Details

Subject: Business
Author: Gregory T
Date: January 24, 2016
Level: University
Grade: A
Length: 64 / 19190
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

In addition to physical costs (menu costs), we identify and measure three types of managerial costs (information gathering, decision-making, and communication costs) and two types of customer costs (communication and negotiation costs). We find that the managerial costs are more than 6 times, and customer costs are more than 20 times, the menu costs...

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We find that the managerial costs are more than 6 times, and customer costs are more than 20 times, the menu costs. In total, the price adjustment costs comprise 1.22% of the company’s revenue and 20.03% of the company’s net margin. We show that many components of the managerial and customer costs are convex, whereas the menu costs are not...

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