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Author: | Kumar, N. Rajiv, S. Jeuland, A. |
Title: | Effectiveness of Trade Promotions: Analyzing the Determinants of Retail Pass Through |
Journal: | Marketing Science
2001 : VOL. 20:4, p. 382-404 |
Index terms: | EFFECTIVENESS TRADE PROMOTION |
Language: | eng |
Abstract: | The authors' objective is to develop a simple game- theoretic framework to examine the strategic considerations that underlie a retailer's decision to pass through a trade deal. In particular, the authors are interested in answering the following questions: (i) What and how product-market characteristics impact the extent of retail opportunism; (ii) How the manufacturer can alleviate the retail pass- through problem by strategically supplementing trade promotions with advertising trade deals directly to consumers. To address these issues, the authors consider a stylized channel with a single manufacturer who serves two customer segments through a single (focal) retailer. |
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