Commentary on "Indistrial Pricing: Theory and Mangerial Practice"
Marketing Science
Competitive Reactions to Advertising and Promotion Attacks
Marketing Science
Own-Brand and Cross-Brand Retail Pass-Through
Marketing Science
Enabling the Willing: Consumer Rebates for Durable Goods
Marketing Science
Editorial: Who Is Afraid to Give Freedom of Speech to Marketing Folks?
Marketing Science
Idea Generation, Creativity, and Incentives
Marketing Science
Marketing Models of Service and Relationships
Marketing Science
Structural Modeling in Marketing: Review and Assessment
Marketing Science
Research on Innovation: A Review and Agenda for Marketing Science
Marketing Science
Brands and Branding: Research Findings and Future Priorities
Marketing Science
Marketing Science
The Effect of Product Assortment Changes on Customer Retention
Marketing Science
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Questionable methods for increasing nominal wages reduce real wages (i.e., buying power) by creating inflation, shortages, lower quality, and long-term unemployment. To increase real wages (i.e., the ability to buy more), economic principles prescribe increasing productivity (i.e., greater output from less input). In contrast, marketing principles prescribes increasing the value of output (i.e., greater customer benefits) through innovation. Beyond increasing real wages, innovation spawns new occupations better matching individuals with skills and providing greater nonmonetary benefits (i.e., job satisfaction). Unfortunately, threatened entrenched incumbents often solicit protectionist legislation claiming negative externalities (e.g., short-term unemployment, lower wages, and burdens on society). Innovation does require labor to move from inferior to superior organizations (i.e., unemployment). However, protectionism only delays and dramatically aggravates the inevitable trauma associated with progress, as worker skills, firm practices, and buyer welfare fall further behind. Recent attacks demonizing Wal-Mart (e.g., the dubious Vlasic pickle claim) epitomize this situation---they are archaic vanilla protectionism, menacing both imperiled consumers and every consumer-driven business.