Does location matters : a case study of pubs in Singapore.

Abstract

This paper focuses its discussion on the pub industry in Singapore, and aims to investigate how and why prices of identical products differ at different establishments. To do so, we recognize that alcoholic beverages are a luxury good, and that the pub industry in Singapore is a monopolistically competitive market. We then determine that the basis for differing prices of identical products at different establishments lie in product differentiation, namely horizontal product differentiation. Following that, we break down the methods of horizontal product differentiation employed by pub owners into five aspects: ambience, service crew, food, amenities and location.