A Theory of Retailer Price Promotion Using Economic Foundations: It's All Incremental

Kurt Jetta, E. Rengifo
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引用次数: 1

Abstract

This paper presents the Theory of Retailer Price Promotions (TRPP) for consumer packed goods (CPGs). Specifically, the theory states that incremental retail sales generated by promotional price discounts are entirely incremental to the promoting manufacturer, the promoting retailer and the category, overall. In general, this implies that there is no post-period reduction in sales (dip) either in the short or long-term, nor is there a reduction of sales for competing brands, nor is there a reduction of sales for the promoted item in competing retailers. It is a Complete Category Expansion Effect (CCEE). The paper discusses the underlying theories of consumer demand that support the CCEE and the lack of economic rationale offered by prior literature. A calibration-simulation example is offered to support the TRPP.
基于经济学基础的零售商价格提升理论:都是增量的
本文提出了包装消费品零售商价格促销理论(TRPP)。具体来说,该理论指出,促销价格折扣产生的增量零售额对促销制造商、促销零售商和品类来说,总体上完全是增量的。一般来说,这意味着无论是短期还是长期,销售都不会减少(下降),竞争品牌的销售也不会减少,竞争零售商的促销商品也不会减少。这是一种完全类别扩展效应(CCEE)。本文讨论了支持CCEE的消费者需求的基本理论以及先前文献中缺乏的经济理论基础。给出了一个标定仿真实例来支持TRPP。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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