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| Author: | Drèze, X. Bell, D.R. |
| Title: | Creating win-win trade promotions: theory and empirical analysis of scan-back trade deals |
| Journal: | Marketing Science
2003 : WINTER, VOL. 22:1, p. 16-39 |
| Index terms: | Profitability Retail pricing Sales promotion |
| Freeterms: | Scan-back |
| Language: | eng |
| Abstract: | Manufacturer trade promotion spending is second only to cost of goods sold as a profit-and-loss item, yet manufacturers often lose money on these deals as a result of forward-buying by retailers. The search for more effective forms of trade promotion and the availability of scanners at cash registers that has led to the emergence of a new type of trade deal - the scan-back - that gives a discount on units sold during the promotion rather than on units bought. The authors develop a theory to compare pricing decisions and profitability under scan-back and traditional off-invoice trade deals. |
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