Title

New product introductions, slotting allowances, and retailer discretion

Authors

Authors

R. Desiraju

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

J. Retail.

Keywords

PRICE; Business

Abstract

Retailers are increasingly demanding slotting allowances for new product introductions. We study two methods of determining the magnitude of such allowances: In the first, the retailer sets the allowance on a "brand-by-brand" basis. In the second, all introductions are asked the same "uniform" allowance. Using a mathematical model, we address the question "which is the preferred method?" This analysis reveals an important tradeoff. While the brand-by-brand method lets the retailer benefit from any successful introduction, the uniform method lets the retailer demand higher allowances. We identify the conditions favoring the use of these methods. (C) 2001 by New York University. All rights reserved.

Journal Title

Journal of Retailing

Volume

77

Issue/Number

3

Publication Date

1-1-2001

Document Type

Article

Language

English

First Page

335

Last Page

358

WOS Identifier

WOS:000170952800003

ISSN

0022-4359

Share

COinS