When the retailer decides to pass through very little of the promotion to customers but purchase in greater quantity during the promotion period to exploit the temporary reduction in price,the result is

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When the retailer decides to purchase in greater quantity during the promotion period to exploit the temporary reduction in price but passes through little of the promotion to customers, it results in an increase in the amount of inventory held at the retailer. This may not necessarily result in a lowering of the price of the product for the end customer, nor does it always lead to increased purchases or sales for the entire supply chain.

When the Retailer Decides to Pass Through Very Little of the Promotion