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Discriminatory Trade Promotions in Consumer Search Markets

This paper shows that in consumer search markets, discriminatory trade promotions create more profits for manufacturers than uniform pricing. The mechanism relies on consumers having heterogeneous search cost and applies even if they have identical demand. By giving some, but not all, retailers a trade promotion, manufacturers create more competition between retailers and boost demand. Relative to uniform pricing retailers who receive the trade promotion sell to a disproportionately larger share of low search cost consumers who are more price sensitive, making these retailers compete stronger. Retailers that do not receive the trade promotion lower their margins, serve a smaller customer base, and are keen to prevent more consumers from leaving.

Ketersediaan

Informasi Detail

Judul Seri

MARKETING SCIENCE; Vol.42 No.2 March-April 2023

No. Panggil

-

Penerbit

: .,

Deskripsi Fisik

p. 401-422

Bahasa

English

ISBN/ISSN

-

Klasifikasi

NONE

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

-

Subjek

VERTICAL RELATIONS
CONSUMER SEARCH
TRADE PROMOTIONS

Info Detail Spesifik

https://doi.org/10.1287/mksc.2022.1380

Pernyataan Tanggungjawab

Maarten Janssen, Edona Reshidi

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