The role of returns policies in pricing and inventory decisions for catalogue goods

The role of returns policies in pricing and inventory decisions for catalogue goods

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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: ,
Keywords: marketing, manufacturing industries, retailing
Abstract:

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.

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