The Dilemma of Pull and Push-Price Promotions

Should manufacturers of products such as automobiles and household appliances offer cash rebates to all consumers at the time of purchase, or offer trade deals to retailers? The authors conduct an analytical inquiry that shows that choosing between these two types of price promotion critically depends on the consumer sensitivity to both regular and promotional prices. More specifically, when consumers are more (less) sensitive to promotions than to regular prices, manufacturers are better (worse) off offering trade deals (consumer rebates) rather than consumer rebates (trade deals). Consistent with traditional predictions found in the economic literature, either of the two promotions can be offered indiscriminately if consumers make no difference between promotional offers and regular-price reductions. The theoretical and managerial implications of these findings are discussed.     

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AN AFRICAN MIRACLE: STATE AND CLASS LEADERSHIP AND COLONIAL LEGACY IN BOTSWANA DEVELOPMENT. Abdi Ismail Samatar. Portsmouth, NH: Heinemann, 1999, 240 pp., cloth $59.95, paper $24.95. ISBN 0-325-0068-9. For credit card orders in the USA, call 1-800-225-5800. Reviewed by Anne Stringfellow.     

Influence Strategies and Channel Member Satisfaction in Cameroon

Researchers have called for increased understanding of channel member satisfaction as a bidimensional construct comprising economic and social elements. In addition to responding to this call, the view that threats and punishments are natural necessities in the African context by reason of cultural preponderances is examined. The study was conducted among brewers and their retailers. The authors found that the brewers' use of threats and indirect influence strategies respectively decreases and increases both economic and social satisfaction of their less powerful retailers, whereas the use of promises contributes to retailers' economic satisfaction. Contrary to theory, however, the use of promises does not undermine channel members' autonomy and intrinsic motivation as will be expected in some Western countries.