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Abstract

Multi-tiered causal analysis is not really a technique but rather a procedure or process that models the push/pull effects of the supply chain by linking a series of multiple regression models together, based on marketing investment strategies and trade investments to retailers. The conceptual design applies in-depth causal analysis to measure the effects of the marketing mix on consumer demand at retail (pull-consumption/retail sell-through) and links it, via consumer demand, to shipments from the manufacturer (push) to the retailers. This situation is known as a two-tiered model. In the case of more sophisticated distribution systems, a model of three tiers (or more) can be deployed-incorporating, for example, wholesalers (that is, consumer to retailer to wholesaler to manufacturing plant).

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