Concentration in food retailing

How free is the market for the retail distribution of food and household products? Harper Boyd, Jr., Henry Claycamp, and Ronald Frank have probed this interesting question through a detailed study of the strength of a small number of corporate and contract chains in the Chicago Metropolitan Area in fifty-nine food and household product classes. Their study shows that, in fifty-five of the fifty-nine categories, the ten leading organizations accounted for more than two-thirds of the volume purchased by consumers. This article reveals several important implications for the manufacturer who wishes to bring his product into a highly concentrated market.     

Entry barriers in retailing

The main purpose of the present research is to compare the impact of exogenous and endogenous market entry barriers in the retail setting. To clarify this issue, potential reactions by existing retailers to prospective competitors are studied. The results indicate that the major entry barriers are capital requirements, availability of store locations, and availability of qualified personnel: all exogeneous variables. In addition, the endogenous barriers most highly ranked, on the assumption that entry would occur, are those designed to reinforce exogenous barriers. Further, collateral issues are addressed. The results are discussed within the context of the research, and directions for future research are given.     

The demand for and the supply of distribution services: A basis for the analysis of customer satisfaction in retailing

This paper brings together two bodies of literature. One of them is a literature on the special role of the consumer in retailing. The other one is the literature on customer satisfaction. This joining of literatures is accomplished by identifying distribution services as outputs of retail firms and fixed inputs into the production functions of consumers and relaxing the standard assumption that the demand for these services is always equal to the supply of these services. The result is a new conceptual framework for the analysis of customer satisfaction in retailing. This framework extends the basic ideas on customer satisfaction developed for manufacturing in a homogeneous single product setting to the heterogeneous multi-product setting relevant for many retailers. The paper illustrates one approach to the implementation of this framework with data for a set of supermarkets in Pamplona, Spain, that measure distribution services by asking consumers questions explicitly identifying these services. The five main categories of distribution services identified by the conceptual framework and measured in the data are economically important and statistically robust determinants of customer satisfaction with supermarkets. These results are obtained controlling for other variables typical of the customer satisfaction literature and measuring customer satisfaction in a manner consistent with that literature. The results are robust to corrections for sample selection and alternative estimation methods. Perhaps our most interesting novel result is that the effect of the determinants of customer satisfaction on future purchase intentions in the supermarket case is different when measured directly in a one stage process than when measured indirectly in a two stage process through the attributes/satisfaction/ purchase intentions chain.

Cross-buying in retailing: Drivers and consequences

The phenomenon of cross-buying by consumers enables retailers to cross-sell their products and increase revenue contribution from existing customers. The effectiveness of cross-selling can be greatly improved by identifying the drivers of cross-buy and using them to target the right customers. In this study we identify exchange characteristics such as average interpurchase time, ratio of product returns, and focused buying, and product characteristics such as category of first purchase, as important drivers of cross-buy. The impact of marketing efforts of the firm on cross-buy is also identified. The results of the study have important implications for academicians in understanding what drives cross-buying as well as practitioners to help design more effective cross-selling strategies.     

Linking corporate reputation and shareholder value using the publication of reputation rankings

Good corporate reputation is one of the most valuable assets and causes a multitude of favorable impacts within different stakeholder groups. As a consequence, a lot of studies analyze the relationship between corporate reputation and financial performance. However, most of them raise the question of causation due to their methodology. In order to isolate the causal impact of corporate reputation on financial performance, some authors conduct event studies, but without remarkable success. Therefore, this study provides initially a comprehensive theoretical background for why reputation should affect financial performance. According to the resulting hypotheses, an event study is conducted to analyze the impact of the publication of reputation rankings by the German Manager Magazin on share prices. As hypothesized, positive and negative announcement effects exist regarding upgraded or downgraded companies respectively. Consequently, investors gain new information from the published rankings (increases or decreases in reputation) to adjust share prices.     

Interformat competition in the grocery retailing

In the last few years, we have seen significant changes in the Italian retail environment which suggest that the patterns of retailing competition are more complex than in the past. In order to expand their target market in a context of economic recession, retailers are implementing new strategies aimed to stimulate the switching between different store formats. As a result, store formats are getting similar and new "hybrid" formats are emerging.This paper investigates the interformat competition between grocery store formats in the Italian retail market in order to understand which formats are converging and which, otherwise, are maintaining their distinctiveness. Our findings show that the rivalry between store formats (interformat) is becoming more intense than the competition within store formats (intraformat). These results have significant implication on both retailers and trade marketing strategies.     

Gains and losses of exclusivity in grocery retailing

Conventional wisdom dictates that convenience goods should be distributed as intensively as possible. Still, exclusivity arrangements are rapidly gaining way in grocery retailing. We discuss the possible performance outcomes of exclusivity deals, and propose a unified framework (i) to quantify the gains and losses of such arrangements in consumer-packaged-goods markets, and (ii) to decompose the total monetary gains and losses into a variety of sources. Our framework considers both the manufacturer and the retailer granted the exclusivity right, and accounts for the fact that both dyad parties may be active in multiple, inter-related, categories.     

Modelling of customer retention in multi-format retailing

The objective of this study is to offer a model of the formation process of loyalty towards the services provided by retail food companies. Specifically, the case of a Spanish company, which is a leader in the retail food market is taken. The company operates using different retail formats, and it has customers with various levels of loyalty and behavioural patterns. The research tries to determine implications for managing the loyalty towards the company. Different customer groups are analysed. Four working hypotheses are proposed and contrasted through the formulation and estimation of two theoretical models or conceptual maps. After the empirical analysis, the proposed models show a good fit, and the formulated hypotheses are confirmed. By using this kind of modelling, the companies that operate under the considered framework may reach significant conclusions prior to making decisions in the area of customer retention.     

Marketing's reputation and influence in the firm

This study examines whether or not marketing's influence in the firm is fundamentally a reputation issue. Based on a sample of 122 senior executives of Australian firms operating in a wide range of manufacturing industries, empirical findings show that the marketing function's reputation in a firm is an important antecedent of marketing's influence in a firm. Results also show that the reputation-influence link is contingent on a firm's particular strategic stance (cost-leadership strategy and differentiation strategy). Results further show that marketing's reputation was good and marketing's influence was strong in the Australian firms surveyed. Directions for future research are discussed.     

New technology in UK retailing: Issues and responses

Technology application in retailing has a considerable history, with applications for the most part aimed at labour cost reduction. The technologies now being applied in retailing and distribution however differ from these earlier ones in a fundamental way. The new technologies in micro‐electronic based computing and micro‐electronic communications differ by being general purpose and flexible and by developing very rapidly. The new technology is enabling changes to take place in the distribution channel. The areas of applications of the new technology and the applications and reasons of technology introduction are analysed in this paper.     

Antecedents of brand citizenship behavior in retailing

There has been increased interest in retail branding yet there is a dearth of internal branding research in this industry. The purpose of this study is to explore the antecedents of Brand Citizenship Behavior (BCB) in a retail environment. The role that the frequency of employee contact with customers plays will also be examined. A further aim is to give guidance to retailers on how they should develop an internal branding management strategy. A conceptual model provides a foundation for the study. A literature review of the brand citizenship behavior and the related constructs was undertaken to inform the model. The results show support for the hypothesized relationships. Significant differences between managers and associates as well as between full-time and part-time associates were found. Recommendations are presented to retailers.     

Towards understanding network relationships in online retailing

This paper views e-commerce (B2C) as a retail innovation that evolves along with newly emerging technological system around the Internet. In the case of e-commerce, this system consists of retailers as adopters and co-developers of technological solutions invented/commercialized by specialists. As part of 'new economy' business practices, what is needed for establishing successful e-commerce venture in terms of tangible resources and competences is not necessarily acquired internally but are coordinated via network relationships. The paper proposes to identify different e-commerce strategies, and outlines the kinds of actors involved in the networks that seem to go along with each strategy. While suggesting that different e-commerce strategies correspond to different networking strategies it points at the importance of relational competences in varying online retailing contexts.     

Developing competence in retailing: strategic advantages

Since the late 1980s, the UK Government has invested significant levels of funding in the development of national competence-based qualifications in an attempt to improve skill levels and therefore international competitiveness. The paper provides an overview of the progress which has been made by the UK retailing industry and presents the implementation experiences of five major retail companies. The paper concludes with an analysis of the strategic implications.     

Marketing in retailing: a research agenda

Although specific retailing subjects related to marketing have been extensively

researched and presented in academic literature, the overall topic of marketing in

retailing has received little attention. This paper identifies and discusses some

principal marketing in retailing issues that warrant empirical assessment.

Research attention to the questions raised in this paper will provide strategic

Guidelines to retailers seeking to improve the marketing performance of their

organizations.     

Guest editorial: research themes in retailing

This paper is designed to address the differences among competitors in the use of interfirm influence strategies, trying to discover tendencies in the use of each strategy, ranking the use of the different influence strategies and identifying the type of strategy used by each manufacturer. Data were gained by a mail survey of the major computer manufacturers in Spain. Empirical research has been undertaken in order to build the constructs 'coercive influence' and 'noncoercive influence', and they are ranked by level of use. Causal analysis is used to provide such analysis. Type of influence strategy adopted by suppliers is analysed. Grouping of computer manufacturers according to the type of influence strategy adopted is also provided.