In addition to selling through the traditional supply chain of manufacturer and retailer, this paper discusses that manufacturer sales its product through both high-end retailer and low-end retailer. This paper use a Stackelberg game to explain the role of manufacturer's paying slotting allowance to the high-end retailers. Based on the analysis of this case, this paper finds the results that paying slotting allowance to the high-end retailers is manufacturer's marketing strategies for increasing its profits. And manufacturer is not intended to profit from the high-end market, but to advertise its products and give a guiding role of price.
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