Interactive Technologies and Retailing Strategy: A Review,Conceptual Framework and Future Research Directions

During the past decade, a number of interactive technologies, including the Internet, have fundamentally transformed how retailers compete in the marketplace. In a similar vein, emerging interactive technologies can be expected to significantly alter the retailing landscape through their impact on retailing strategy and operations. Furthermore, it is conceivable that certain emerging interactive technologies will be perceived by some retailers as enablers (tools to more effectively compete in the marketplace) and by other retailers as disruptors of the present ways of doing business. Interactive technologies can either be generic, a technology that is readily available from an information technology (IT) vendor and is widely adopted by retailers, or proprietary. An interactive technology that is proprietary can enable a firm to generate economic rents from the innovation for an extended duration of time. Investing in a generic interactive technology, however, may be perceived as a cost of doing business for a retailer, and not a potential source of sustainable competitive advantage. However, a retailer's complementary resource endowments may enable the retailer to more effectively leverage a generic technology relative to its competitors and thereby achieve a sustainable competitive advantage. In this paper, we review the related literature, develop a process model delineating the mechanisms by which an interactive technology can affect and necessitate changes in retailers' strategies and identify directions for future research.     

Accessing and affording sustainability: the experience of fashion consumption within young families

Despite the ever increasing levels of fashion consumption, neither retailers nor consumers have as yet implemented sustainability principles to a significant degree. This is despite the fact that sustainability principles are increasingly understood and will be applied by consumers, as long as affordable alternatives in mainstream fashions are available. In a highly competitive fashion retail sector, there exists an opportunity for UK high street fashion retailers to differentiate their brand image through aligning products with consumers' moral frameworks. Using phenomenological interviews, this research explores the fashion consumption experiences of professional women with young children and living in or near Edinburgh, with particular focus on their expression of their own sustainability concerns in their day‐to‐day practices. The findings reveal that in the absence of suitable products, information and labelling, consumers apply heuristics to their choices, especially price. They refer to the more familiar ethical food market which serves as a metaphor for fashion‐related practices. They talk about trustworthy retailers and about how they deal with and rationalize their own practices where they reveal an obvious attitude‐behaviour gap. The women's role of providing for the family adds further complexity in a sector which provides affordable alternative options.     

The Asian economic recession and retail change: the implications for retailer strategies in Asia

For almost three years the Asian Economic Crisis has been one of the most talked about influences on the retail sector in the region. This paper argues that the economic crisis has hidden or diverted attention away from the underlying changes in retailing that have been proceeding for much longer.A more dynamic and proactive retail sector appears to be evolving, one which is now less of a 'taker' of the strategies of manufacturers and more of a 'setter' of trends in product development and logistics. European and American retailers often appear to be major catalysts in this process, but this is not to say that the Asian retail sector will not develop in its own way, matched to local needs. What does now appear to be clear is that as economies in the region recover, most of their retail sectors will not go back to 'business as usual'.     

Corporate Social Responsibility and Marketing Communications Within Stores: A Case Study of U.K. Food Retailers

ABSTRACT

The U.K. Government has argued that more transparency in the ways that companies address and manage environmental, economic, and social issues can help improve relationships with employees, customers, and other stakeholders and U.K.'s large food retailers are increasingly keen to report their commitment to CSR. This paper offers a preliminary examination of the extent to which the U.K.'s major food retailers currently use CSR as a means of communicating with customers within their stores.     

Supermarkets in China: the case of Shanghai

Supermarkets have established a visible presence in Shanghai with some 1,000 stores and an estimated 5 per cent of market share. Local chains dominate the sector but well-known international retailers are very active. Studies indicate that a large proportion of consumers regularly shop in supermarkets but they use them 'selectively', mostly for packaged and processed foods, and continue to purchase fresh food in traditional outlets. The author uses a variety of data types and a number of research methods to analyse supermarkets' penetration into Shanghai. A background discussion of the food retail system in Shanghai highlights the traditional formats, the local and foreign supermarket chains, and the independent supermarkets. The data from a consumer shopping behaviour study is then used to assess supermarkets' penetration. Supermarkets' fast penetration into Shanghai is surprising given the findings of earlier studies, which identified the existence of serious limitations on the format's penetration into less developed countries (LDCs). Consequently, the focus in the second part of the paper is on explaining the reasons for the success of supermarkets. The impact of the factors identified in the earlier studies as constraining supermarkets' advance were evaluated and it was found that in Shanghai three of these factors (consumers, traditional retailers and government) did not cause serious problems for supermarkets. Only the supply-side conditions negatively affected their operations. The Shanghai example highlights the need to update our thinking regarding the LDCs' food retail modernization process in a number of directions. First local supermarket chains, not foreign ones, drive the process. Second, supply-side factors, not the demand-side ones that were emphasized in earlier studies, pose the major difficulties. Third, this analysis affirms the importance of the 'selective' adoption phenomenon where LDC consumers who regularly shop in supermarkets continue to purchase fresh food in traditional outlets. The implications of this analysis for food retail modernization theory and for practice are discussed and the prospects for further development of the supermarket sector in Shanghai are assessed.     

Organizational culture as differentiator in international retailing

Much of the international retailing literature echoes major retailers' assertions that inimitable organizational cultures can create competitive advantage. However, the culture concept remains ill-defined and systematic international empirical analysis is lacking. Based on website analyses of nine international retailers, the paper investigates how organizations define their cultures, codify and transfer them into practice, and aim to homogenize them across borders. Although some evidence for organization-specific cultural aspirations is identified, findings suggest that retailers' cultures become homogenized within and between countries. This supports previous work on the existence of industry-specific macro cultures and challenges the resource-based view, which sees culture as a source of competitive advantage.     

The New Change Process

Abstract

This paper reports on the empirical testing of two key propositions using a study of apparel retailers in Eastern Australia. The first proposition states that small retailers have an advantage in personal service compared lo large retailers. The second proposition states that human resource capabilities contribute to a competitive advantage in personal service.

The key contributions of the research include the identification of the incidence of a competitive advantage in personal service among retailers; the testing of theoretical propositions, and the recognition of the implications of the research for the more successful management of retail businesses. The final contribution is the exploration of managerial implications. Employee training emerges as the key to improved performance in personal service.

The findings are significant for the survival of SME retailing as we know it and there is scope to test the status of the propositions in other industries and in other countries.     

Determinants of Poland's Competitive Advantage in the Logistics Sector

Abstract

This paper discusses the transformation within the distribution and logistics sector in Poland. The privatization process and business growth, in conjunction with foreign direct investment, have created a very competitive environment. A modified version of Porter's determinants of the competitive advantage model is used to illustrate changes in this industry. Models are presented depicting business logistics in Poland before and after the transformation. Twelve firms operating in this sector were studied. Problems and opportunities are discussed as they relate to business logistics in Poland. Eventual membership in the European Union will further expand markets, as well as modernize Poland's infrastructure and business logistics systems.     

An Empirical Analysis of Danish Companies' Experiences in the People's Republic of China

In the last ten years or so, the People's Republic of China has been the subject of increasing attention on the part of researchers and practicioners alike, not least because of the potential trading implications for Western firms (and economies) of China's "open door policy." This paper examines the business experience of small and medium-sized Danish companies in dealing with the People's Republic of China. Based on information provided by 49 companies responding to a mail questionnaire, the study provides empirical evidence relating to (1) the motivation underlying the firms' decision to enter the Chinese market, (2) the forms of initial market contact and modes of market entry, (3) the bases of competitive advantage, (4) the specific difficulties/problems associated with setting up and operating in this market, and (6)the perception of the companies as to the success of their efforts. The results are placed in the context of previous analyses of the peculiarities of China as a trading partner for Western firms and their managerial implications are considered in terms of highlighting issues of practical importance for companies contemplating the establishment of links with what has come to be known as "the world's largest untapped market."     

Power,policy networks and planning: the involvement of major grocery retailers in the formulation of Planning Policy Guidance Note 6 since 1988

This paper explores a neglected issue in the study of retail strategy and store location by considering the nature of policy networks operating at the interface between retailers and central government. It argues that informal networks, coupled with the economic power of retailers and the legitimization of their activities with reference to the 'consumer interest', have served to provide retailers with an influential avenue through which they can exert power over the nature of the regulatory environment within which they operate. The paper considers the limited extant 'evidence' of the operation of such networks before moving on to outline the results of a case study. The case study reflects on new store development in the UK grocery sector since 1988 as a backdrop to an analysis of the form of policy networks operating at the interface between government departments and retail organizations. It also explores the role of other stakeholders in this process. The existence of a number of such networks is described and their role explored with reference to the involvement of retailers in the formulation and evolution of Planning Policy Guidance Note 6 on retail development.     

“Service” in Luxury Retailing in the Twenty‐First Century: An Exploratory Look at the Pleasure Boating Sector

This study explores the most effective retailing strategies with which luxury retailers can achieve a competitive advantage. The central role of services in enhancing the consumption experience in the luxury segment has been analyzed considering the pleasure boating sector, with a focus on the role that the dealer may have, both in the integration of different services and in the development of a durable competitive advantage. A qualitative study has been carried out through semistructured, in‐depth, one‐to‐one interviews with representatives of companies that deal with the pleasure boating sector. The results show that in the luxury pleasure boating sector, the introduction of a better‐defined retail strategy focused on services and its integration within the entire distribution channel may be crucial but also difficult to achieve in contexts that lack a marketing orientation. The contribution to extant literature on service in the pleasure boating sector and in luxury retailing in general is outlined. The managerial implications for practitioners in the pleasure boating sector are also discussed.     

Measuring image: shopping centre case studies

The first goal of the paper is to define the concept of micro-marketing, overcoming the 'specialized' perspectives and definitions that have prevailed so far. Micro-marketing relates to ways of controlling environment complexity, facilitated by information technology and required by highly competitive markets. Such control has three forms: segmentation , which reduces complexity to a controllable number of variables; organization , which absorbs a certain amount of complexity by modelling the structure onto the environment; technology , which explores complexity and dominates it through simplification. The second goal is to demonstrate that micro-marketing can build a sustained competitive advantage. Finally, the theoretical implication of the diffusion of a micromarketing approach in the retailing industry is discussed. The areas of strategy, organization, channel relationships, and customer satisfaction are examined. Should micro-marketing become widespread in the retailing industry, we argue that its final result would be increased welfare for the consumer, as long as retailers capitalize on the power of information and stand as a 'countervailing power' to suppliers in the channel.     

Utilitarian,hedonic, collecting,epistemic, and high values as determinants of the attractiveness of premium promotions

Modern retail is fiercely competitive, forcing grocery retailers to enhance promotions including premium redemption to attract customers. Taiwan’s leading convenience store chains have even established an integrated marketing department to develop unique premium rewards and campaigns that seek to induce customers to spend more or switch from other retailers. However, research on premium attractiveness is relatively scarce despite its importance in determining the success of a premium promotion. This empirical study identifies the premium value hierarchy that drives attractiveness from the consumer’s perspective. It finds that epistemic value is the most important driver behind making a premium reward attractive, which in turn, raises customers’ brand attitude toward the retailer and purchase intention in the retailer’s stores. High premium value can also make a customer develop a positive brand attitude. By contrast, utilitarian, hedonic, and collecting values only indirectly affect a customer’s brand attitude via the epistemic value. In addition, the trading stamps promotion only works with frequent customers; it is not effective in enticing VIP customers. This study provides suggestions on how to develop an attractive premium product and successful trading stamps promotion.     

Entrepreneurial leadership in the Meiji cotton spinners' early conceptualisation of global competition

The superior competitiveness of the Japanese cotton industry became so obvious in the interwar period. The sources of the Japanese competitive advantage have thus collected considerable scholarly interest. A series of past studies stressed the significance of planned coordination and managerial innovations within the industry as a whole, and this involved their findings that the leading spinners and trading companies realised the efficient coordination. This paper inquires into the Meiji industrial leaders' conceptualisation of the new nature of entrepreneurial management. This entails an analysis of their early entrepreneurial leadership in the 1880s that provided the developing industry with a long-range plan for exponential growth since then. The essence of industrial competitiveness resided in the noticeable cognitive commonality in their sustainable core competence for the upcoming global competition.     

Dependency in Manufacturer-Retailer Relationships: The Potential Implications of Retail Internationalisation for Indigenous Food Manufacturers

This paper explores the sets of trading relationships and interdependencies that existed between British and Irish food retailers and the Irish food manufacturing sector prior to Tesco Stores acquisition of Power Supermarkets in 1997. Power Supermarkets was at that time the largest grocer in Ireland. The paper examines the role played by Irish and British retailers in the development of the Irish food manufacturing sector. It points to some of the ways in which retail internationalisation and growing retail concentration are likely to affect food manufacturers and the sets of power and dependency relationships that exist along the food chain. It demonstrates that the effect of internationalisation is likely to be asymmetric with small and emerging firms more likely to experience adverse consequences. The impact upon manufacturers' brand portfolio and customer portfolio strategies are also highlighted.     

Expansion of Japanese Retailers Overseas

Abstract

There have been a number of studies of foreign retail entry into Japan but few that consider the moves of Japanese retailers to other Asian countries. Nonetheless expansion into Asia of Japanese retailers, notably since the early 1990s, has been considerable. Many have been attracted by the large size of several national markets. Large Japanese trading houses have played a significant direct and indirect role in the international moves of Japanese retailers. China has become the major place of investment for Japanese retailers with 21 retail companies established by Japanese firms. The history of the internationalisation of Japanese retailing shows three phases of development. A first phase is characterised by department stores, a second phase is a slowing of activity in the late 1990s and a third phase of rapid expansion is presently evident. The key to the current phase is the establishment and strength of non-retail supply firms in the same East Asian region into which retailers wish to expand.     

The influence of human resource management in savings bank performance

The aim of this article was to analyse the value of human resources (HR) for competitive advantage and their influence on the firm's performance in the service industry. To achieve our goal, we have first proposed a resource-based framework to discuss the circumstances under which human resources can be a source of competitive advantage. Then, an empirical research was developed in the Spanish savings bank sector to analyse the relationship between HR management and the firm's performance. Our results, suggest that those savings banks which better combine their HR practices to create and to develop a strategic human capital pool have shown better levels of profitability and productivity.     

Consequences of personalized product recommendations and price promotions in online grocery shopping

Shopping convenience can be turned into a competitive advantage for online grocery retailers. Consequently, we study how personalized product recommendations (recommendation agents) and price promotions (algorithmic pricing) compensate for the negative impact that consumer's perceived cognitive effort causes on loyalty. By default, the relationship from perceived cognitive efforts to attitudinal and behavioral loyalty is negative, yet these results demonstrate that personalized price promotions lessen the negative impact, while personalized product recommendations do not have such an influence. The findings contribute to a better understanding of personalized marketing activities in today's data-driven online grocery retailing.     

The Rise of China and East Asian Export Performance: Is the Crowding‐Out Fear Warranted?

This paper examines how China's emergence as a major trading nation is affecting export performance of its East Asian neighbours. Following a stage‐setting overview of trends and patterns of China's export performance, it probes China competition in third country markets and emerging patterns of imports. The East Asian export experience is examined in a wider global context against the backdrop of the ongoing process of global production sharing. The findings indicate that the ‘China threat’ has been vastly exaggerated in the contemporary policy debate. China's rapid market penetration in traditional labour‐intensive manufactured goods has occurred mostly at the expense of the high‐wage East Asian countries, without crowding‐out the export opportunities of low‐wage countries in the region. More importantly, China's rapid integration into global production networks as a major assembly centre has created new opportunities for the other East Asian countries to engage in various segments of the value chain in line with their comparative advantage.     

Applying Choice Based Conjoint Measurement to Forcast Demand for a New Restaurant Category

Discounter operated supercenters are perceived as a major competitive threat to current food retailers. Their selection of both supermarket type merchandise and discounter general merchandise is perceived as an advantage to time pressed consumers. In this study, for consumers living within a five-mile radius of a Super Krnart Center, selection was a primary reason 16 percent of the respondents considered the center as their favorite grocery store but, location was the most important reason. This is one of the first studies to find that location is a primary reason for shopping a supercenter and supports the conjecture of locational importance by some industry observers. The profile of the primary supercenter shopper is a younger more educated shopper who lives close to the supercenter and values selection. Respondents who did not consider the supercenter their primary store still liked its selection but generally found the supercenter's prices high and location inconvenient.