Article ID: | iaor199961 |
Country: | United States |
Volume: | 44 |
Issue: | 2 |
Start Page Number: | 276 |
End Page Number: | 283 |
Publication Date: | Feb 1998 |
Journal: | Management Science |
Authors: | Gilbert Stephen M., Emmons Hamilton |
Keywords: | marketing, manufacturing industries, retailing |
Manufacturers often use returns policies to encourage retailers to stock and price items more aggressively. We focus on the effect that such policies have on both a retailer's and a manufacturer's profits when the retailer must commit prior to the selling season to both a stocking quantity and a price at which to sell an item. Such a commitment is often necessary for retailers who sell primarily through catalogues.