Determinants of Merchandising Proposals by Vendors: Influence of the Recognition of Transaction Costs

ABSTRACT

This study discusses customized merchandising proposals in retailer-vendor relationships, based on transaction cost theory. The theoretical model suggests that trust relationships and the centralization of merchandising authority promote the activeness of customized merchandising proposals. The results from structural equation modeling analysis reveal that customized merchandising proposals by a vendor are actively executed when (a) a trust relationship between a retailer and a vendor becomes long term and stable and (b) the merchandising authority of a retailer's merchandising division becomes centralized.     

A good deal online: The Impacts of acquisition and transaction value on E-satisfaction and E-loyalty

Relying on Thaler's exchange theory, this research examines the unique effects of perceived transaction and acquisition values on consumer e-satisfaction and e-loyalty in an e-commerce setting, along with the moderating role of product/ service category. Overall, consumers' perceptions of transaction value lead to their e-dissatisfaction. Hence, obtaining a good deal does not have the same meaning and influence depending on the type of buying trip (exploratory or goal-directed). These results confirm Thaler's exchange theory's usefulness to analyzing the impact of perceived value on e-satisfaction and e-loyalty. Additionally, in a managerial perspective, this research underlines the importance of adapting promotional strategies to online contexts, since online purchase experience improves when there is an alignment between the customer's goals and the e-tailer’s online offering.     

Shopping motives as antecedents of e-satisfaction and e-loyalty

Abstract

Customer loyalty is fundamental to the profitability and survival of e-tailers. Yet research on antecedents of e-loyalty is relatively limited. This study contributes to the literature by investigating the effect of motives for online shopping on e-satisfaction and e-loyalty. A structural equations model is developed and tested through data from an online survey involving 797 customers of two UK-based e-tailers focussing on hedonic products. The results suggest that convenience, variety seeking, and social interaction help predict e-satisfaction, and that social interaction is the only shopping motive examined with a direct relationship to e-loyalty. Data also show that e-satisfaction is a strong determinant of e-loyalty. These findings are discussed in the light of previous research and avenues of future research are proposed.     

中国工商关系的演变历程与特点

本文通过对中国工商关系演变的考察,发现中国工商关系经历了从批发商主导到制造商主导再到零售商主导的演变过程,同时对目前的中国工商关系进行了初步的分析和判断。     

Measuring the antecedents of e-loyalty and the effect of switching costs on website

This paper deals with the process by which electronic customer loyalty (e-loyalty) is formed. The twofold aim is to analyse e-loyalty, describing its development in terms of how it is influenced by several determinants and to study potential barriers to switching which significantly affect the repeat purchase decision. In particular, an integrating theoretical framework is proposed to determine the e-loyalty dependency of electronic service quality and perceived value, and how this last relationship can be moderated by switching costs. Results offer evidence for the important role of customer's perceptions of e-service quality and value in e-loyalty. Proposals are made of how companies that are online can use this knowledge to build marketing strategies.     

An Empirical Investigation of Bilateral Investments and Opportunism in Buyer-Supplier Relationships

Collaboration between buyers and their suppliers often requires both parties to dedicate specialized investments to the relationship. These bilateral idiosyncratic investments serve as mutual hostages and signal commitment to the relationship, yet they are susceptible to expropriation. Drawing on research in social psychology and transaction cost economics, we argue that the nature of the bilateral idiosyncratic investments influences perceptions of a supplier's opportunism that in turn influences retailer opportunism and relationship outcomes. Data collected from 120 Norwegian managers of consumer electronics retail stores provide an assessment of the proposed model. The results indicate that the total and asymmetrical nature of the bilateral idiosyncratic investments influence perceptions of supplier opportunism and these perceptions, in turn, influence the retailer's opportunism and commitment to the relationship. Implications of these findings and future research are discussed.     

How does a new institution spread? Travel agencies' adoption of the service quality assurance programme

Despite the recognition of service quality as a major advantage in service industries, the travel agency sector in Taiwan has lacked any service quality certification regime that could optimize service provision or reduce customers' transaction costs. Since the introduction of such a quality-assurance programme in Taiwan in mid-2003, local travel agencies have responded differently. With a sample of 167 uncertified Taiwanese travel service operators, this study argues that firm responsiveness to a new institution depends on two distinct motives, rational and normative, and that such relationships are contingent upon CEO's background and market conditions. The results detail the varied responses as a result of rational and normative considerations and highlight the context-dependent nature of the motivation–behaviour relationships. This study yields important implications for quality credentialing bodies regarding how a new institution may diffuse in a field.     

Construction of Preferred Product Profiles and Product Differentiation

Abstract

This paper illustrates a methodology called choice modeling (CM) that allows a comparison between beef quality preference profiles of three different merchandising groups in South Korea. The CM data was collected from three equally proportioned retailer, wholesaler and importer groups in South Korea by a mail survey. Multinomial logit model (MNL) estimation of the CM data showed that all three merchandising groups currently define preferences for imported beef cut with narrow range and specificity. The choice modeling (CM) technique that was applied in this study is found to be effective in eliciting product profile of a beef cut that is preferred specifically by a particular merchandising group. Construction of a preferred product profile of a beef cut for each merchandising group provides a basis for marginal analysis of factor level changes on buyers' purchasing choices. Information on preferred product profiles and marginal analysis of three merchandising groups' beef purchasing behavior can facilitate differentiated product development and marketing programs at different stages of the beef supply chain in Korea.     

从国际比较看我国消费品流通渠道的优化

通过对中国、美国和日本流通渠道的国际比较发现,美国流通渠道以零售商为主导,并以扁平化为特点,日本流通渠道实现了以制造商为主导的纵向一体化,而我国流通渠道尚未与工业化大生产的分销需求相匹配。因此,我国需要遵循流通渠道的演变规律,根据生产发展适时调整渠道结构,顺应消费升级趋势创新流通渠道,维护公平环境构建和谐渠道关系,应用新型技术手段提升渠道效率,从培育批发商主导模式、零售商主导模式和生产企业主导模式三条路径入手,优化我国消费品流通渠道。     

Information Technology Use and Firm's Perceived Performance in Supply Chain Management

Purpose: This article proposes a theoretical model to investigate (a) a positive direct relationship between the specific use of ITs (applied to management) and the firm's performance as perceived by retailers and (b) a positive indirect relationship through information quality and information sharing.

Design/Methodology/Approach: The theoretical model proposed in this paper is contrasted using structural equation modelling of the retail distribution channel for home appliances.

Findings: The research shows that there is no positive direct relationship between the specific use of ITs and the retailer's perceived performance in the relationship with the provider. The results do, however, provide evidence for a positive indirect relationship through both information sharing and satisfaction obtained from the relationship with the provider.

Research Limitations: The analysis has been developed from the retail perspective. We suggest that future research focus on the retailer's and the provider's perspectives.

Practical Implications: In the context of SCM, the competitive advantages achieved through IT use derive from a better network of relationships between the firms involved as a result of greater information quality and information sharing. Specific use of ITs stimulates greater information sharing between retailer and provider and thus greater satisfaction and better perceived performance of the retailer in the relationship with the provider. However, the effect of IT use on information sharing occurs only through the quality of the information shared.

Originality/Value: The study shows that information quality is an antecedent of information sharing and that both information quality and information sharing act as necessary conditions for improving the retailer's perceived performance in the relationship with the provider. This article develops a measurement scale to evaluate the intensity of IT use. Finally, the research confirms that firm performance can be modeled as a second-level latent variable composed of three different dimensions (economic benefits, marketing benefits, and adaptation benefits).     

Effects of web site characteristics on customer loyalty in B2B e-commerce: evidence from Taiwan

This study proposes a model to explain how web site characteristics influence customer e-loyalty and positive word-of-mouth (WOM) via relationship quality (trust, satisfaction, and commitment) in business-to-business e-commerce. Three hundred and twelve online services users of the Market Intelligence Center in Taiwan were recruited and structural equation modeling was used to test the research hypotheses. The result indicates that web site characteristics positively influence relationship quality. A follow-up post-analysis showed how five dimensions of the web site characteristics impacted relationship quality. In addition, both trust and satisfaction have a positive direct effect on e-loyalty, but not on positive WOM. Finally, theoretical and managerial implications of the findings were discussed.     

Determining profitable products in the retail market with consideration of cash limitation and exhibition periods

In the selection of profitable products, consumer preferences and retailer constraints in products supply must be considered. When data mining algorithms are used to discover the consumer's preferences from transaction database, the results may be biased, if the exhibition period of the products has not be considered. In this study a new method is proposed to adjust the support and confidence coefficients of traditional association rule mining algorithms such as Apriori or FP-growth taking into consideration of common exhibition periods. On the supply side, the retailer may have some limitations in terms of buying and supplying products in the store. In the most recent researches, only the shelf space constraint has been considered. In this study, financing as an important constraint in the retail market and the opportunity cost of money are imported in the selection of profitable products.The researcher's experiment on real world data shows that the number of frequent itemsets increases significantly when products exhibition periods are taken into consideration. In this case, if the retailer considers the opportunity cost of money as 1%, the profitable set composition will be changed by 10%. Also, when the opportunity cost is 1% and the retailer faces cash limitation, the number of products is reduced by 21% in the most profitable set, whereas the new set composition is 29.4% different from the base set.     

The relative efficiencies of price execution between the Singapore Exchange and the Taiwan Futures Exchange

Both the Singapore Exchange (SGX) and the Taiwan Futures Exchange (TAIFEX) offer future contracts based on Taiwan's stock‐market indices. TAIFEX reduced the transaction tax from 5 basis points to 2.5 basis points on May 1, 2000. Hence, empirical tests are performed on the differences in trading costs and information transmissions between SGX and TAIFEX for the sample periods both before and after the tax reduction. It is shown that the reduction in the transaction tax greatly improves the efficiencies of price execution. Due to the structural differences between these two markets, the trading costs and speed of information transmissions also are different. The results also provide implications for the relative efficiencies of different market structures. © 2002 John Wiley & Sons, Inc. Jrl Fut Mark 22:173–196, 2002     

世界范围内的工商关系演变历程及启示

中国目前的工商关系处于十分紧张的阶段。本文通过对世界范围内的工商关系演变阶段的研究 ,发现工商关系演变经历了从批发商主导到制造商主导再到零售商主导的演变过程。这种演变规律及内在机理 ,对我国政府和企业处理目前的工商关系将提供借鉴意义。     

The effects of store brand loyalty on store loyalty: evidence from the Spanish market

This article studies the impact of retailers' store brands on store performance. Specifically, we analyze the extent to which store brands contribute to store loyalty. On the one hand, a positive relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer should result from the potential of the store brand to differentiate the retailer. On the other hand, an negative relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer may result from store brands' association with more price-sensitive customers, who have a higher propensity to buy at different stores that offer the best bargain. The empirical analysis, conducted with a sample of customers of leading retailers in the Spanish detergent market, shows no relationship between store brand loyalty and loyalty to the retailer. Although the purchase of store brands relates positively to higher loyalty to the retailer, this relationship deteriorates with the degree of exclusivity of store brands within the customer's shopping basket.     

The role of etail quality,e-satisfaction and e-trust in online loyalty development process

The purpose of this study is to propose and test an integrative model of e-loyalty development process by conceptualizing that e-loyalty is influenced by e-satisfaction, e-trust and multi-dimensional aspects of etail quality. In order to capture the full picture of etail quality, we attempt to cover the complete purchase experience by focusing on four dimensions of etail quality that go beyond website functionality or system quality aspects: fulfillment/reliability, website design, security/privacy and responsiveness. From the 182 usable data obtained, hypotheses are tested using structural equation modeling. The results indicate that the e-loyalty development process is influenced by both e-satisfaction and e-trust. The relationship between e-trust and e-satisfaction is found to be significant as well. Components of etail quality have differing effects on e-satisfaction and e-trust. Evaluation of fulfillment/reliability influences e-satisfaction as well as e-trust. Website design positively influences e-satisfaction while security/privacy has a positive effect on e-trust. However, contrary to our expectation, responsiveness affects neither e-satisfaction nor e-trust. Managerial implications are provided following presentation of the findings.     

Modeling e-loyalty: a moderated-mediation model

ABSTRACT

This work proposes a research model that elaborates upon the development of e-loyalty based on the signaling theory and attachment theory. In the model, e-loyalty is indirectly related to both visual appeal and an e-tailer’s service reputation through the full mediation of trust and affection. At the same time, the relationships between trust and e-loyalty and between affection and e-loyalty are hypothetically moderated by an e-tailer’s service reputation. The proposed hypotheses of this research were empirically tested using data from working professionals in high-tech firms in terms of online retailing. This study surveyed the same research participants at two different time points, one month apart, to verify the theoretical inferences. The empirical findings herein complement the previous literature by presenting how visual appeal and an e-tailer’s service reputation simultaneously influence e-loyalty through various mediating and moderating mechanisms.     

Relationships of retail brand manufacturers with retailers

Abstract

Previous researchers have discussed the convenience of manufacturing retail brands. However, they have seldom developed any empirical work. In this article we present an analysis framework to study the impact of the production of retail brands on the manufacturer's relationship with the retailer, depending on the manufacturer's competitive position in the brands they produce. The model presented is empirically tested through a covariance structure model. In order to do this, we use the data from a postal survey aimed at business units manufacturing retail brands in the Spanish market for mass commodity products.     

Does Taiwan's entry into the WTO truly reduce its agricultural output values?

This study has used the time series data of Australia, China, Denmark, India, Japan, the Netherlands, Norway, the Philippines, South Korea, Spain, and the United States from the World Bank to estimate the agricultural economic shock of Taiwan's accession to the World Trade Organization (WTO). We have adopted the recently developed panel data approach for policy evaluation to construct the annual agricultural growth path of Taiwan, which is mainly based on the cross-sectional correlations between the domestic and international agricultural trade markets in the absence of Taiwan's entry into the WTO. Our results have not only revealed the importance of ex post counterfactual analysis, but also provided empirical evidence that the agricultural economic shock is not as severe as predicted by many ex ante studies. Based on these results, we have concluded that the outcome may have arisen from the slow progress of achieving agricultural trade liberalization under the WTO and the Taiwanese Government's effective adoption of phase-in periods and relative adjustment policies.