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Storeowner compliance to the performance allowance strategy was monitored throughout the program through process evaluation.
In exchange for discounts, the pricing group storeowners (Groups 1 & 3) agreed to the terms of the performance allowance: to stock the promoted foods, to provide retail pass-through to customers, and to display communications materials (combined group only).
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The feasibility of using performance allowances and communications will be evaluated through process evaluation.
Some benefits, such as professional allowances (duty fees, performance allowances), were omitted from the study to save effort.
One positive effect are the so-called "primes de performance" (performance allowances), which are paid for good indicator results.
An alternative way to reduce consumer costs of healthier foods is through performance allowances (also known as trade promotions or promotion allowances), a standard food industry marketing practice.
With performance allowances, manufacturers pay downstream distributors and/or retailers for a certain performance, such as slotting allowances to acquire prime shelf space or advertising allowances paid from the marketer to the retailer for advertising a certain product.
Most research on trade promotions, including performance allowances, remains theoretical and overly simplified, using simulations and modeling to determine effects [ 27].
In contrast, performance allowances are deals offered (i.e., discounts, rebates, coupons) to retailers with the expectation that retailers pass them through trade deals to consumers [ 27].
Monetary performance allowances were provided as incentives for wholesalers and retailers to stock and discount healthier foods and thereby increase supply and demand.
Trade promotions, including performance allowances, are used to increase sales and stocking of certain foods during specific periods of time [ 27].
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