Question: 1. Explain why selling private brands often enables large retail chains to pocket trade deals instead of passing their reduced costs along to consumers in the form of lower product prices.
2. In your own words, explain why EDLP(M) pricing diminishes forward buying and diverting.
3. In your own words, discuss how pay-for-performance programs, or scan downs, would, if widely implemented, virtually eliminate forward buying and diverting.