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Retail trade incentives: How tobacco industry practices compare with those of other industries

Author

Listed:
  • Feighery, E.C.
  • Ribisl, K.M.
  • Achabal, D.D.
  • Tyebjee, T.

Abstract

Objectives. This study compared the incentive payments for premium shelf space and discounts on volume purchases paid to retailers by 5 types of companies. Methods. Merchants were interviewed at 108 randomly selected small retail outlets that sell tobacco in Santa Clara County, California. Results. Significantly more retailers reported receiving slotting/display allowances for tobacco (62.4%) than for any other product type. An average store participating in a retailer incentive program received approximately $3157 annually from all sampled product types, of which approximately $2462 (78%) came from tobacco companies. Conclusions. Future research should assess the impact of tobacco industry incentive programs on the in-store marketing and sales practices of retailers.

Suggested Citation

  • Feighery, E.C. & Ribisl, K.M. & Achabal, D.D. & Tyebjee, T., 1999. "Retail trade incentives: How tobacco industry practices compare with those of other industries," American Journal of Public Health, American Public Health Association, vol. 89(10), pages 1564-1566.
    • Handle: RePEc:aph:ajpbhl:1999:89:10:1564-1566_5
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    Cited by:

    1. Melik Karabiyikoglu, 2012. "Bonus and Rebate: Perception of Exclusive GSM Dealers and Their Salesmen in Turkey," International Review of Management and Marketing, Econjournals, vol. 2(3), pages 192-198.
    2. Adam D. Rennhoff, 2004. "Paying For Shelf Space: An Investigation Of Merchandising Allowances In The Grocery Industry," Food Marketing Policy Center Research Reports 084, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    3. Rennhoff, Adam D., 2004. "Paying For Shelf Space: An Investigation Of Merchandising Allowances In The Grocery Industry," Research Reports 25155, University of Connecticut, Food Marketing Policy Center.
    4. Laska, Melissa N. & Sindberg, Lesley Schmidt & Ayala, Guadalupe X. & D'Angelo, Heather & Horton, Lucy A. & Ribisl, Kurt M. & Kharmats, Anna & Olson, Christina & Gittelsohn, Joel, 2018. "Agreements between small food store retailers and their suppliers: Incentivizing unhealthy foods and beverages in four urban settings," Food Policy, Elsevier, vol. 79(C), pages 324-330.
    5. Rennhoff Adam, 2008. "Paying for Shelf Space: An Investigation of Merchandising Allowances in the Grocery Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(1), pages 1-40, October.
    6. Benjamin Klein & Joshua D. Wright, 2007. "The Economics of Slotting Contracts," Journal of Law and Economics, University of Chicago Press, vol. 50(3), pages 421-454.

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