Loss leaders and cross-category retailer pass-through: A Bayesian multilevel analysis

Material TypeArticleLanguageEnglish
TitleLoss leaders and cross-category retailer pass-through: A Bayesian multilevel analysis Author(S)Joseph Pancras (Author)
Abstract  Retail pass-through has been extensively analyzed analytically and empirically, and recent empirical work has stressed the importance of appropriate methodology and data for inferring correct retail pass-through. However the literature on retail pass-through has interpreted 'pass-through’ as being confined to a specific product category, and only to brands within that category. This category restriction has been derived from a tradition of modeling retailers as 'category profit maximizers’. Yet it is widely accepted that retailers strive to maximize profits across categories, with several categories specifically functioning as 'loss leaders’. In this paper we argue that this pragmatic view of retailers makes it necessary to reevaluate retailer pass-through from being merely a 'within category’ phenomenon to also a 'cross category phenomenon ...Paginationp 140-157
SubjectCommerceDescriptorsRetail trade
Journal TitleJournal of Retailing  
Permanent Linksclick here