Analyzing Coupled and Decoupled Pricing Strategies in the Retail Industries

This study investigates channel pricing strategies of retailers, specifically the difference between coupled (uniform pricing across channels) and decoupled (non-uniform pricing across channels) statuses and their effects on retail divisions. Based on extensive data gathered from different retail divisions, this research uses statistical techniques like Chi-Square tests and ANOVA to analyze the occurrence and effects of price differences within stores, of a retailer. The study detects strong discrepancies in some categories, such as Groceries & Refreshments and Digital Appliances, indicating product category influence on pricing strategies. The research further explores the effects of these pricing strategies on customer satisfaction and perception, finding that discrepancies tend to cause customer inconvenience and possible brand loyalty erosion. Suggested strategies for improving pricing strategy are the implementation of more advanced pricing models and the optimization of the price-matching process to provide an enhanced customer experience. The research presents insights useful to retailers wishing to improve their pricing strategy in a competitive market in order to strike a balance between customer satisfaction and business needs.