Retail merchandising condition executed by retailers and measured using the retailer’s POS system. This measure is calculated (from prices obtained from the POS system) not collected from retailer features or from what is displayed on a shelf price tag. A TPR is a temporary price cut of at least 5% from the regular price. In both IRI and Nielsen data, after 7 weeks, the TPR price becomes the new regular price.
Reference article: Beginner’s Guide to Trade Merchandising Measurement.
How is TPR collected. Thank you Ramesh
TPR is a calculated measure, based purely on the scanned pricing. IRI/Nielsen have an estimate of regular price (they call it Base Price). When the actual scanned price is at least 5% lower than the base price, IRI/Nielsen assume a temporary price reduction (TPR). If the “temporary” price reduction persists for more than 7 or 8 weeks (the exact number varies by vendor) then it will no longer be considered “temporary” and will be the new base price.
what does a decrease in incremental sales due to the promoted price of a temporary price reduction tell me?
I would have to see the exact data to be sure but it’s possible there is less of that type of promotion (and therefore less incremental sales) or the size of the discount could be smaller either on an absolute or percentage basis. And sometimes, if you are looking at a product without much promotion, incremental sales numbers can be wonky and just look weird for no good reason at all!