Wholesalers as Global Marketers

ABSTRACT

The notion of wholesalers as global marketers is almost an oxymoron in marketing thought. Yet, in fact, wholesalers as an institutional type have for thousands of years been involved in what today we refer to as global marketing. Wholesalers of many types have performed numerous activities or functions that have always been necessary for connecting distant buyers and sellers so that transactions can be consummated across international boundaries. In fact, by performing many distribution tasks or functions, wholesaling intermediaries of all types create the channel flows that link buyers and sellers together on a global scale. These flows, of which there are eight (product, ownership, promotion, negotiation, financing, risking, ordering, and payment), do not automatically appear out of thin air. Rather, the eight flows are created and sustained by many types of organizations that perform all of the myriad distribution tasks needed to connect sellers and buyers. Wholesale distributive institutions of all kinds, from the traditional so-called full-function merchant wholesaler to the more narrowly focused wholesaling intermediaries such as freight forwarders and export desk jobbers, all make a contribution by creating and sustaining channel flows. In recent years, as these flows increasingly extend to an international or global level, wholesaling intermediaries will likely play an even larger role in global marketing.     

The Linkage of Trades in Terms of Wholesale Business Formats in Japanese Distribution Systems

Abstract

Japanese distribution and particularly wholesaling are often suggested as having complex channel structures. This can provide difficulties for international retailers who wish to develop direct links with manufacturers and agricultural producers. Wholesalers, in this system, attempt to synchronize their buying and selling functions that gives rise to different types of wholesale business format. Unlike retail formats, wholesale formats seldom have relationships with the final consumer. Results of a survey of wholesalers are presented. The results show that the buying and selling trade relationships are driven by different factors depending on the business format of the wholesaler.     

The Internet and International Consumer Markets

ABSTRACT

The Internet provides consumers around the world with a new mechanism for expanding and enhancing the information used to evaluate products and a new channel for making purchases. The purpose of this paper is to explore the implications of this new information environment for global markets. The critical role that information access plays in shaping global markets is examined. Implications for research on consumers in global markets are drawn.     

An examination of the use of legitimate power in marketing channels

The importance of understanding and managing the channel conflict process has been well discussed, however little research has been conducted to examine the relationship between channel conflict and channel structure. In order to provide the focus for an in-depth research effort, this investigation was restricted to one type of channel structure, a retailer-owned co-operative wholesaling-retailing system, and to an examination of the role and importance of legitimate power as it contributes to channel conflict. A cross-sectional study was conducted of management and boards of directors of the wholesaler and 165 member-retailers of the Co-operative Retailing System. Results from correlational analysis of the aggregated data from sixty-four retail outlets indicated that a co-operative retailing-wholesaling system offers a model of distribution where the benefits of independence and co-ordination have been melded. From the retailers' perspective, autonomy for the independent retailers and a degree of control over channel decisions is offered. For the wholesaler, the decision-making structure provides a model for managing relations between large and small organizations which incorporates a mechanism for conflict resolution, while maintaining standardized delivery of products and services.     

Rural Retailing: Challenges to Traditional Handicrafts

ABSTRACT

The expansion of tourism into villages has provided craft traders of Kerala with significant opportunities in rural retailing. However, village artisans with limited resources fail to reach global consumers. This study aims to clarify the challenges faced by rural craft cooperatives in selecting retail channels for their products. Testing the hypotheses at two levels using primary and secondary data, the author identifies the retail channel that offers the maximum returns to producers and satisfaction to consumers. The results indicate that those cooperatives owning exclusive retail channels guarantee sustainable market relationships for rural artisans.     

Retailers’ coalition and quantity discounts under demand uncertainty

Coalition of retailers is a nowadays phenomenon in retailing channels (RCs) that makes it possible for the retailers to enhance their business performance and respond to the consumers' needs more effectively. This paper discusses the retailers' coalition advantages and challenges in a two-echelon retailing channel consist of one wholesaler and two non-competing retailers who serve the consumers. The model is developed under a classic newsvendor problem where an all-unit quantity discount is offered by the wholesaler. Our investigations are conducted for both homogeneous/heterogeneous retailers under three different scenarios. In the developed models, the retailers start to make a coalition and make a joint order in order to gain more from the offered discount by the wholesaler, and then using a heuristic procedure they allocate the received order to serve their individual markets. The main objective of this study is to analyze and resolve challenges of the retailers' coalition when a quantity discount is offered in order to make them capable to meet consumers' needs in the best possible manner. Three models are developed: (1) no-coalition decentralized scheme, (2) decentralized coalition where the retailers coalesce, and (3) centralized coalition where not only the retailers but the wholesaler participate in the coalition scheme. Our paper contributes to the RC management literature by analyzing the benefits of the retail coalition in taking most advantage from an offered quantity discount. Results demonstrate that the optimal configuration of the retailers' coalition increases profits of both the retailers and the RC in comparison with the no-coalition scenario. Our findings help procurement managers to rethink their ordering policy toward forming coalition to gain more profits and enhance their service level to meet consumers’ needs.     

Global retailers and logalization: ‘thinking locally and acting globally’

Abstract

This research provides theoretical rationale to explain how global retailers are able to harvest multiple ideas from diverse host-markets and add relevant new ideas into a standardized retail mix that is rolled out globally. To capture this bottom-up harvesting of local information embedded in host-markets, this study adopted the term ‘logalization’ from the economics literature and applied the absorptive capacity framework. Under the activation of absorptive capacity, host-market subsidiaries play a critical role in acquiring and assimilating relevant knowledge from the host market and disseminating it to headquarters. The home-country headquarters (HQ) then transforms relevant knowledge into an innovative standardized retail mix to exploit at the global level. The concept of ‘logalization’ differs from ‘glocalization’ found in the literature; glocalization incorporates the local context to establish a strategy at the local level, while logalization uses local information as a resource to develop a standardized strategy at the global level. The development of propositions is informed by semi-structured interviews with 10 managers employed by global retailers. By illustrating the logalization orientation, this research describes how global retailers can create an innovative retail mix by exploiting heterogeneous information from various host-markets to create and sustain a competitive advantage in the global market.     

Currency Substitution and Price Endings: Right Digit Effect

ABSTRACT

The strategic manipulation of prices. rightmost digits has been a tactic used by retailers in the western world for decades. By studying the internationalization of pricing tactics in a global economy, our research adds a much needed contribution to the literature of price endings and pricing tactics in global markets. We find that at lower price levels, consumers exposed to a 99 ending price in a currency substitution market are more likely to purchase the product compared to consumers in the US market. At higher price levels, on the other hand, consumers in either market situation exhibit no change in purchase intentions. Thus, the 99 ending tactic has no effect on consumers when the product is expensive. The use of the right digit effect by managers in a currency substitution/ dollarized economy as a way of persuading consumers to buy is still likely to be more successful compared to the USA market. As such, firms in a dollarized economy should structure their pricing strategies while taking into consideration the type of product they are offering and the consumer market they are dealing with.     

互联网时代批发商的的“再中介化”——价值链整合视角

文章从价值链整合视角探讨批发商在互联网时代实现“再中介化”的可能形式。首先,通过构建数理模型研究发现,批发商通过互联网途径前向整合零售商价值链将改善所有渠道成员的福利水平,且在批发商在某些价值环节上比零售商更具成本优势的前提下,福利改善水平随着整合程度的提升而提升。其次,通过具体案例分析了批发商前向整合零售商价值链的过程与方式。研究发现,批发商可以通过构建互联网平台形式,凭借专业化优势前向整合零售商的价值链中某些弱势环节,与零售商形成价值创造共同体,实现整体价值创造能力的最大化,完成“再中介化”目的。     

Best Practice Channel Management

Abstract

In this article, a global marketing channels consultant identifies and discusses the best practices in channel management. The author argues that a channel effectiveness is largely predicated on both the channel system and the channel partner effectiveness. A framework is posited that includes dimensions of systemic costs, controls and coverage, as well as channel member competencies and commitment. The author suggests that channels management practices ultimately increase stakeholder value.     

Industry,Organizational Age,and Size as Predictors of Organizational Values in the Context of a Transition Society: The Case of Estonian Organizations

ABSTRACT

Over the past 20 years, China and India have emerged as the fastest growing economies in the world. In this context, the authors review, examine, and list the factors that have contributed to the emergence of China and India (referred to as Chindia). The authors compare the antecedents, characteristics, and consequences of their emergence in the global market. This article provides insights for the researchers and multinational enterprises from rest of the world to carry out studies on country analysis as well as foreign market entry modes. Besides, we posit theoretical and testable propositions for future research.     

Commitment and Trust in Cross-National Channel Relationships

Abstract

Cross-national channel relationships are becoming increasingly important, so it is time for research in the channels literature to continue beyond a focus of channel relationships within a single country or channel design for market entry. The author presents a model of commitment in cross-national manufacturer-distributor relationshipsthat extends the commitment-trust theory of relationship marketing by incorporating four constructs conceptualized to represent the influence of a firm's current and prospective partners on the focal relationship: resource transferability-to partner; resource transferabil-ity-from partner; resource particularity-adaptation and resource particularity-consumption. Data collected from 143 U.S. manufacturers, 106 Mexican manufacturers, and 97 Mexican distributors show that the model generalizes across this national boundary. In particular, a similar influence of mutuality on trust and trust on commitment was observed for both manufacturers and distributors. The influence of resource transferability, particularity on the relationship, was also observed. The findings provide strong support for extending the commitment-trust theory to aid the study and management of cross-national channel relationships.     

The role of design in the future of digital channels: Conceptual insights and future research directions

PurposeIn the past channel literature has looked to other disciplines in developing and refining their theories, models and methods in order to evolve the field. This paper traces such history and highlights the substantial changes caused by the digital age. In light of this, the inclusion of design theory into future channel management is presented to overcome existing concerns.Design/methodology/approachA comprehensive review of literature on the history of channels, the emotional experience (people), limitations of digital innovation (technology) and the role of design (business) has been conducted to create a new approach, built upon the theory of the techno-economic innovation model.FindingsThe findings of this study propose design-led channel management as a new research area, providing novel research questions and future research directions. The inclusion of design and emotion theories indicates that the future of digital channel design requires a deeper understanding of customers and needs to go beyond technological advances.Theoretical implicationsThe findings provide an opportunity to explore dynamic theories and methodologies within the field of design that will broaden the horizons and challenge existing notions in channel literature.Originality/valueThis paper is the first paper that introduces the theory of Emotionate, as the next evolution of channel literature. The value of Emotionate lies in providing a new design-led process of integrating emotion to provide advice to practitioners as well as identifies research areas for academia, thereby extending the reach and richness of this emerging research field.     

Global marketing Myopia

The objective of this paper is to expand the concept of global marketing strategy beyond its current myopic focus on product positioning and branding. Emphasis on these issues lends to lead to the conclusion that standardisation is the most desirable global strategy. However a successful global marketing strategy needs to be developed and evaluated within the broader context of the overall strategy of the firm, rather than being based purely on customer‐market considerations. This calls for examination of resource allocation across countries, market segments and products, the integration of sourcing activities and production, management and logistical systems into global marketing strategy.     

The Compatibility of the Marketing Concept Within the “Classified” Customer Service Culture of Department of Defense National Testing Laboratories

ABSTRACT

The role of national defense research laboratories has dramatically changed since the collapse of the Soviet Union and the relaxation of “Cold War” imperatives. As these organizations are seeking new “market oriented” opportunities, the fundamental philosophy and culture of these organizations must be examined in order to determine if such firms, historically dependent on government awards and contracts, can effectively compete in the highly competitive global economy. The purpose of this study is to examine the relative compatibility of the marketing concept with the attitudes and customer service practices of one such highly confidential organization. By initiating such inquiry, it is hoped that other research and inquiry will be undertaken with the goal being to help transition the power of these basic and applied research facilities into the private sector more efficiently.     

Trajectories for Driving the Diffusion of e-Negotiation Service Providers in Supply Chains: An Action Research Approach

ABSTRACT

The recent proliferation of online-based trade makes negotiations with service providers for global supply networks evermore challenging. The Internet is believed to be a viable means for enabling and facilitating these supply chain interactions. As such, commercial web-based services that support negotiation processes have emerged (i.e., e-negotiation services). Even though these services have promising benefits for supply chain participants, they have not been accepted by most business users. Current e-negotiation studies fail to capture the substantive reasons of this low acceptance as they typically ignore real-world aspects of commercial negotiations. As such, this study argues that an action research approach is a plausible means to study this issue, and to drive changes in the e-negotiations services market. Accordingly, a research plan is outlined with guidelines and recommendations for future action research projects.     

Exploring the international student recruitment industry through the Strategic Orientation Performance Model

Abstract

International education is an important, and expanding, global industry. However, much remains unknown about the international student recruitment (ISR) industry, its key variables, and its performance outcomes. This study addresses this lack of understanding by developing and empirically testing a conceptual model that investigates ISR performance indicators. The Strategic Orientation Performance (SOP) Model is proposed as an investigative framework. The model is a conceptual representation of the relationships proposed to exist between market orientation, learning orientation, innovativeness, perceived external market effects, and perceived organisational performance. The study adopted a quantitative methodology using a self-administered questionnaire delivered to ISR practitioners via e-mail. Analysis, via partial least squares (PLS), provided support for the SOP Model in the ISR context. The SOP Model extends previous orientation-performance models. Additionally, within a discordant body of market orientation literature, this study aligns with one of the dominant paradigms and, thereby, provides a strong impetus for further research. Furthermore, future research will benefit significantly through the use of the SOP Model as a solid foundation for further discovery in this important research domain.     

An Investigation into Potential Moderating Effects of the Relationship Between Actual and Perceived Market Orientation

Abstract

This study examines the gaps between a firm's actual (self-reported) market orientation and the channel partner's perceptions of the firm's market orientation and factors that may moderate that gap. Expected differences between the measures were found, but in an unanticipated direction-perceptions of market orientation received higher ratings than actual market orientation. To gain a fuller understanding of this difference, variables that may moderate the perceptual gap were tested. Communication was found to be an important moderator of this relationship between actual and perceived market orientation.