Research Summary
Research Summary
Pricing and Promotions
Description
Price promotions offered by product manufacturers to channel intermediaries are the subject of much current debate, as well as attempts by packaged goods manufacturers to curb, if not eliminate, their use. Samuel S. Chun's research, which includes the development of models of these so-called trade deals, suggests that they are a natural outcome of brand competition. Strategic application of price discrimination can be used to simultaneously capture additional, and protect existing, market share by luring away and retaining customers. Current extensions of Chun's research include an examination of deals involving multiple package sizes and retailer issues related to forward buying.