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Trade promotions are manufacturer incentives directed to retailers rather than to consumers, aiming at influencing retailer's sales, prices and merchandising practices. Although they are a growing element in the promotional mix of food manufacturers worldwide, trade promotions often raise concerns about their impacts on performance and coordination in the food supply chain, which in turn affect retail food prices. This paper aims to measure the influence of market power on the outcomes of trade promotions negotiated between food manufacturers and supermarkets.

The paper employs Rangan's conceptual model to develop hypotheses about the links between three dimensions of market power (size, brand and institutional power) and trade promotion budgets and their allocation between discount‐ and performance‐based types. The paper employs trade promotion data collected from 36 supermarkets in the USA to statistically test these links.

The results suggest that brand, size, and institutional power of food manufacturers and retailers affect trade promotion budgets and their allocation among discount‐ and performance‐based types. Food manufacturers have relatively more control over their trade promotion budgets whereas retailers may have more influence on the allocation decisions.

The findings can help food manufacturers and retailers identify institutional, brand and size variables that may help them leverage trade promotion negotiations. The results are relevant to policymakers, in particular for the study of antitrust and performance issues in the food distribution system.

This research aims to examine whether shopping orientation (experiential vs task-focused) influences how consumers react toward nonmonetary and monetary promotions. It was predicted that promotions are more effective if the promotional benefits are congruent with consumers’ shopping orientation. Moreover, consumers’ financial budget was assumed to moderate the influence of shopping orientation on promotion effectiveness.

The hypotheses were tested in three experiments. Study 1 used a measure of shopping orientation as a consumer disposition and examined its influence on promotion attractiveness. Two further studies used an experimental manipulation of shopping orientation and examined its influence on promotions attractiveness and retailer choice.

The results supported the hypotheses. Task-focused shoppers evaluated monetary promotions as more attractive than nonmonetary promotions. Experiential shoppers evaluated both types of promotions as comparably attractive. Furthermore, experiential shoppers were more likely than task-focused shoppers to choose a retailer offering a nonmonetary promotion over a retailer offering a monetary promotion. Low financial budget, however, reduced the influence of shopping orientation on retailer choice.

To effectively use promotions as a tool, marketers and retailers need to know when and how to use them, as well as understand which type of promotion is the most effective. This research implies that retailers will benefit from customizing promotions to fit consumers’ shopping orientations. Furthermore, the findings show that the advantage of such a tailored approach is reduced if consumers’ financial budget is limited.

Since 2016, organized retailers in Colombia have struggled against a new retail format: Hard-discount stores. This sales channel fulfills essential shopping basket products with consistent low prices. To be competitive and preserve their market position, organized retailers must improve their processes and their pricing decisions. Promotions and discounts have been considered as an effective alternative to compete. This study analyzes the impact of joint prices decisions over the individual and global financial key performance indicators when a collaborative strategy is adopted. Our case study comprises a supermarket chain Colombian retailer and a consumer packaged-goods manufacturer to analyze its supply chain performance. The analysis considers different product categories (food, personal care, and cosmetics) and country regions. The results highlight that benefits are unequally distributed along different echelons and supply chain performance is affected when pricing decisions are made independently.

As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become complicated in the presence of different retail format strategies (generalist vs specialist) and channel structures (direct to retailer vs distributors). Building on trade promotion literature, this study aims to show the main effect of value-related and experience-related trade promotions on retailers’ sales and the moderating role of different retail strategies and channel structures.

The authors use unique panel data from 8 personal care brands with 1,920 observations to test the hypotheses. The authors investigate how consumer goods manufacturer sells products using different channels structures and retail strategies. Estimated panel regressions provide the empirical evidence and robustness analyzes provide extra confidence to the findings.

Results reveal higher retail sales when the manufacturer invests in value-related trade promotions rather than experience-related trade promotions. The results also demonstrate how the manufacturer successfully invests in trade promotion by adequately accounting for channel structure and retail strategy. While temporary price reduction’s positive effect on retail sales is enhanced in generalist retailers (e.g. supermarket stores), shelf display’s positive impact is enhanced in specialist retailers (drug stores).

The authors used unique panel data accounting for 15 months, limiting the findings. The results supported the investment allocation decisions in each period. However, future research may evaluate the effectiveness over a longer period and thoroughly address each investment’s seasonal effects.

The authors unveil how retailers achieve higher sales with value-related trade promotions when compared to experience-related trade promotions. The authors also shed light on the way manufacturers design their relationships with generalist and specialist retailers by working in direct and indirect channels. Trade promotions yield better results when the direct channel structure couples with a retailer’s generalist strategy.

The empirical findings help manufacturers achieve success in trade promotions by developing an equitable evaluation to contrast value- and experience-related promotions accounting for generalist and specialist retail strategies and direct and indirect channels.

This paper investigates a dual-channel supply chain in which a manufacturer offers coupons in the online channel and the retailer in the offline channel. The optimal pricing and coupon promotion policies are explored, and the brand image under different promotion scenarios is studied.

Three differential game models, namely no coupon is offered, coupons offered by the manufacturer and coupons offered by the retailer, are constructed.

The results show that the manufacturer and retailer intend to conduct coupon promotions under a large coupon redemption rate. Coupon promotion derives a higher price and profit for the issuers, and the manufacturer can free-ride on the retailer's coupon promotion. The retailer's profit in the retailer-promotion scenario may be lower than that in the manufacturer-promotion scenario in some special conditions. Besides, price, coupon face value, brand image and profit increase over time. After multiple cycles game, the operational strategy evolves to an optimal equilibrium status.

This paper provides guidance and advice for dual-channel supply enterprises to implement joint pricing and coupon promotion strategies under multiple sales seasons.

The exponential growth of organised retail has led to competition among mall retailers with the use of promotions to increase traffic to the stores. The footfall in the malls is dependent on the sales generated by various retail stores located in the malls. The current research analyses the role of promotions used by the retailers located in Indian malls in improving consumers’ commitment towards the mall. The purpose of this paper is to examine the influence of culture, personality traits like value consciousness, price consciousness and coupon proneness, and promotions used by retailers in malls on consumers’ commitment towards the malls.

Eight malls from six cities were selected by popularity and footfall. Mall-intercept technique along with systematic sampling was used to collect data from 453 mall shoppers using a self-administered questionnaire. Structural equation modelling was used to analyse the data.

Retailer promotions were categorised under discounts, promotional offers and loyalty cards. The findings suggest that cultural values of long-term orientation and masculinity have an impact on consumers’ perceptions towards discounts, promotional offers and loyalty programmes. Different promotional strategies had varied responses from consumers.

Mall retailers can use the findings to design promotions according to the cultural values of masculinity and long-term orientation. Loyalty programmes can symbolise status and long-term relationship with retailer. Commitment towards retailers and consequently malls could be enhanced through discounts and promotional offers. Different promotional strategies can be used to target price-conscious consumers and increase footfall in the stores. The linkages between cultural dimensions and promotional techniques would be helpful in targeting different consumer groups by designing promotions which are in line with cultural values.

The research extends the existing literature on mall retailing by analysing the importance of cultural dimensions on sales promotions strategies used by retailers in malls. The study establishes that perceptions towards retailer promotions differ across cultures. Different promotions offered by retailers generate varied response from consumers across different cultures which would influence their commitment towards malls.

The current research aims to explore influence of shopping motives and price perceptions on Indian consumers' attitude towards mall retailer promotions. Effect of price discounts, gifts, coupons, and rebates offered by mall retailers to attract store traffic were examined.

Data were collected through mall intercept technique in six cities across India. Convenience sampling method was used to target metropolitan and non-metropolitan cities for data collection.

Results suggest that consumers' attitude towards mall retailers' promotional strategies is influenced by shopping values and price consciousness, deal proneness, and coupon proneness. Age, education, and income influence consumers' attitude towards promotions.

Only three constructs of price perception scale were used for the research. Future research can include all the items of price perception scale to understand its applicability on Indian sample. Promotions offered by branded and non-branded retailers in malls were not examined.

The findings can be useful to mall retailers for designing promotions to increase footfalls and sales. Promotions can be used by retailers to convey value and attract price conscious consumers. Retailers need to match their promotional offers according to price sensitivity and shopping motives of consumers.

There is limited research to examine role of promotions used by mall retailers in attracting footfalls in Indian malls. The influence of price perceptions and shopping motives on promotions offered by retailers in Indian malls has not been examined.

Many studies have examined the short‐term and long‐term effects of price promotions. This study adds to previous research by examining, in some depth, the effects of a massively successful price promotion in a consumer goods category. This study sought to determine if this large price promotion had any: longer‐term effect on brand volume; short‐term effect on total category volume for the retailer; short‐term effect on competing retailers; and longer‐term effect on category sales for the retailer that ran the promotion. The results showed that this promotion did not have any longer‐term (positive or negative) effect on the brand, but it did expand the total category for the retailer, albeit temporarily. Sales dropped slightly for one competing retailer at the time of the promotion, but not for the other two retailers in the market. Finally, the study found that the promotion was followed by a decline in total category volume for the retailer, suggesting some degree of purchase acceleration or stockpiling by consumers. The results suggest that the longer‐term negative effect on category volume cancelled out approximately two thirds of the gains of the price promotion to the retailer.

The purpose of this paper is to present an investigation into the causes of promotional on‐shelf‐availability (on‐shelf‐availability) shortfalls in retailing.

The research follows a multiple‐case study research design involving seven major retailers and four multinational food manufacturers operating in the UK. The data collection took the form of semi‐structured interviews with 110 practitioners across 24 sites. Observations and documentation were used as supporting evidence.

Improving promotional on‐shelf‐availability presents retailers and manufacturers with a complex set of inter‐connected problems distributed across the supply chain. This research identified 32 causes affecting on‐shelf‐availability, grouped into eight themes, six of which are generic (forecasting, collaboration, replenishment, IT, distribution and production), and two which are specific to promotions (timescales and promotional process). This classification provides practitioners with a framework to improve promotional on‐shelf‐availability and academics with a more comprehensive range of the factors affecting on‐shelf‐availability, including two new themes not previously documented.

Although the number of cases does not allow statistical analysis, the size and scope of the organizations involved helps to underpin the generalizability of the findings. The volume of data collected for retailers is significantly higher than for manufacturers, although this only reflects the importance of retailers in ensuring on‐shelf‐availability.

This paper presents a framework designed to provide a steer for further research into promotional on‐shelf‐availability and to help retail professionals to prioritize their actions towards improving promotional on‐shelf‐availability.

While on‐shelf‐availability has been the subject of much research, promotional on‐shelf‐availability has not been investigated in significant depth. This research is, to our knowledge, the first to investigate the causes of poor promotional on‐shelf‐availability and expands the knowledge of the field by highlighting the similarities and differences between traditional on‐shelf‐availability and promotional on‐shelf‐availability. Given the increasing use of promotions as a competitive strategy this area of research is both timely and important.

The purpose of this paper is to examine two key dimensions of in‐store marketing, namely in‐store promotions and price markdowns. These seem to be the two most important aspects of in‐store marketing, though other dimensions such as retail personal service are also worthy of study.

A sample of 287 New Zealand clothing and shoe retailers was studied. Survey questions included the perceived importance of in‐store promotions and price markdowns. The aim was to explain these perceptions in terms of marketing strategies, threat of competition and environmental uncertainty.

The results indicate that a discount marketing strategy, environmental uncertainty and emphasis on price‐promotions are key to explaining retailers' perceptions and use of specific in‐store marketing activities. In addition, seven key marketing activities were found to distinguish high‐ and low‐performance retailers with respect to in‐store promotions.

The study has highlighted strategic aspects of in‐store marketing, by focusing on two key components of in‐store marketing, namely in‐store promotion and price markdowns. The findings should provide much needed advice to retailers on the use of sales promotion tools in different environmental settings.

This paper should prove valuable to academic researchers and retailing managers (particularly to those in smaller countries), owner‐operated retail outlets, and chain stores.