POCKETING THE TRADE DEAL

Marcia K. Armstrong, Eitan Gerstner and James D. Hess

No 279598, Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada from Regional Research Projects > NECC-63: Research Committee on Commodity Promotion

Abstract: Retailers frequently pocketed trade deals but magnified them when they passed ?nything through. Nothing other than anecdotal evidence has been published in intervening two decades since Chevalier and Curhan's study to document changes occurring in trade promotion offers and retail response. Filling this void, the paper begins with an empirical analysis of all trade promotion offers over a recent two year Period to one retail chain and its response. The paper concludes with a simple model that identifies the forces that break down channel coordination when trade promotions are relied upon. These include consumer difference in willingness to pay and retailer differences in the importance of store traffic draw from the promoted brand.

Keywords: Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 9
Date: 1994-04
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:rr6394:279598

DOI: 10.22004/ag.econ.279598

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