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The Diminishing Marginal Utility Of Draft Beer

Draft beer is highly perishable and offers diminishing marginal utility – a combination that makes discounting larger servings a profitable approach.
  Draft beer is highly perishable and offers diminishing marginal utility – a combination that makes discounting larger servings a profitable approach.   Draft beer is… http://beyondcostplus.com/blog/diminishing-marginal-utility-draft-beer/

Cannibalization

The loss, or cannibalization, of per-unit profit when a product is discounted.
The term cannibalization is used to describe a lot of different things but, for our purposes, it usually refers to a reduction in per-unit profit when the product is discounted.… http://beyondcostplus.com/pricing-resources/pricing-definitions/cannibalization/