The Influences of Price Dispersion and the Manufacturer`s Suggested Price on Consumers` Boundaries of Acceptable Price: Expected Price as a Mediator

Abstract

The article presents a study on the influences of price dispersion which is defined as the price variability across stores for a certain product or brand. It notes on the effect of price dispersion particularly on the manufacturers and use the manufacturer`s suggested price (MSP) to hinder retailers from excessive mark ups and to counteract with negative impact of the unanticipated retailing prices. The aim of the study is to examine the joint effects of price dispersion, MSP, and brand image.