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

Abstract

This paper presents the Theory of Retailer Price Promotions (TRPP) for Consumer Packaged Goods (CPGs). The theory states that under several conditions that completely apply to CPGs, incremental retail sales generated by promotional price discounts are entirely incremental to the promoting manufacturer, the promoting retailer and the category, overall. In… (More)

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