Price Promotions and Trade Deals with Multiproduct Retailers
AbstractIn this paper we study retail price promotions and manufacturer trade deals in markets with multiproduct retailers. We find that in situations where retailers carry more than one competing brand, the promotions across brands can be positively or negatively correlated depending on the structure of the market: the relative sizes of the various market segments (in terms of loyalty to manufacturer, retailer, or the pair manufacturer-retailer). We show that sometimes retailers offer the same discount on different products, but at other times they offer a smaller discount on a brand supported by a bigger trade deal. We also present results on the effects of changes in the sizes of the different market segments on the depth of price promotions and trade deals and on pass through.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 44 (1998)
Issue (Month): 7 (July)
Price Promotions; Trade Deals; Multiproduct Retailers; Category Management; Competition;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Konrad, Kai A., 2010. "Merger profitability in industries with brand portfolios and loyal customers," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-08, Social Science Research Center Berlin (WZB).
- Il-Horn Hann & Kai-Lung Hui & Sang-Yong Tom Lee & Ivan P.L. Png, 2005. "Sales and Promotions: A More General Model," Industrial Organization 0508014, EconWPA.
- Timothy J. Richards, 2006. "Sales by multi-product retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 261-277.
- Bakucs, Lajos Zoltan & Ferto, Imre, 2009. "Milk Retail Sales Patterns in a Transition Economy. The Case of Hungary," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 50932, Agricultural Economics Society.
- Juan C. Gázquez-Abad & Manuel Sánchez-Pérez, 2009. "Factors influencing olive oil brand choice in Spain: an empirical analysis using scanner data," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 36-55.
- Bing Jing & Z. Zhang, 2011. "Product line competition and price promotions," Quantitative Marketing and Economics, Springer, vol. 9(3), pages 275-299, September.
- Peter E. Rossi & Judith A. Chevalier & Anil K. Kashyap, 2002.
"Why Don't Prices Rise During Periods of Peak Demand? Evidence from Scanner Data,"
Yale School of Management Working Papers
ysm291, Yale School of Management.
- Judith A. Chevalier & Anil K. Kashyap & Peter E. Rossi, 2003. "Why Don't Prices Rise During Periods of Peak Demand? Evidence from Scanner Data," American Economic Review, American Economic Association, vol. 93(1), pages 15-37, March.
- Judith A. Chevalier & Anil K. Kashyap & Peter E. Rossi, 2000. "Why Don't Prices Rise During Periods of Peak Demand? Evidence from Scanner Data," NBER Working Papers 7981, National Bureau of Economic Research, Inc.
- Michael R. Baye & John Morgan & Patrick Scholten, 2004. "Temporal Price Dispersion: Evidence from an Online Consumer Electronics Market," Working Papers 2004-04, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Villas-Boas, Sofia B. & Villas-Boas, J. Miguel, 2006.
"Learning, forgetting, and sales,"
CUDARE Working Paper Series
1020, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Villas-Boas, Sofia B & Villas-Boas, Miguel, 2006. "Learning, Forgetting, and Sales," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7td275hv, Department of Agricultural & Resource Economics, UC Berkeley.
- Allender, William J. & Richards, Timothy J., 2009. "Measures of Brand Loyalty," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49536, Agricultural and Applied Economics Association.
- Bing Jing, 2007. "Product differentiation under imperfect information: When does offering a lower quality pay?," Quantitative Marketing and Economics, Springer, vol. 5(1), pages 35-61, March.
- Wu, Y. & Zhang, D.Z., 2007. "Demand fluctuation and chaotic behaviour by interaction between customers and suppliers," International Journal of Production Economics, Elsevier, vol. 107(1), pages 250-259, May.
- Hansen, Kristin & Loy, Jens-Peter, 2007. "Multiproduct Food Retail Sales: A Case Study for Germany," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6568, International European Forum on Innovation and System Dynamics in Food Networks.
- Lloyd, Tim A. & Morgan, C. Wyn & McCorriston, Steve & Zgovu, Evious, 2009. "Do Sales Matter? An Exploration of Price Discounting in UK Food Retailing," 2009 Conference, August 16-22, 2009, Beijing, China 51572, International Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.