Channel Intermediaries and Manufacturer Performance: An Exploratory Investigation in an Emerging Market

Channel intermediaries (hereafter, intermediaries) are among the most critical elements of any supply chain as the bulk of manufacturing output is transported through them. However, we have a limited understanding of the approach a manufacturer should take to achieve the dual goal of increasing profitability and intermediary satisfaction. To provide manufacturers with practical strategies to boost their performance and their intermediaries’ satisfaction, we rely on three related studies. In Study 1, through interviews with managers and intermediaries, we find that distribution alignment across intermediary, market, and product types may be a practical strategy for both manufacturers and intermediaries. In Study 2, by using a robust empirical methodology with data from a construction product manufacturer operating in an emerging market, we find that various combinations of intermediary, market, and product types affect the manufacturer’s performance differently. Accordingly, through a supply-side examination, we quantify the revenue impact of reallocating the studied manufacturer’s retail distribution resources among different intermediary-, market-, and product-type combinations. In Study 3, through a field implementation, we find that our recommended intermediary alignment strategy from Study 2 substantially boosts both the manufacturer’s performance (by fourteen percent in revenue and thirteen percent in profit) and intermediaries’ satisfaction (by 7.71%). Thus, with our qualitative, empirical, and field studies, we contribute to the existing research in channel management, emerging market retailing, retail distribution, and marketing strategy.     

The Evolution of Marketing Channels: Trends and Research Directions

Despite the vast increase in marketing channels research published in the past decade, few contemporary analyses review or synthesize the domain. This article provides a comprehensive review of marketing channels research from 1980 to 2014. To present a multidimensional view of marketing channels, the authors evaluate extant literature from four perspectives: (1) key theories and constructs, (2) marketing channel strategies, (3) units of analyses, and (4) substantive topics in channels research. A content analysis of the relevant topics within each perspective that have had the greatest impact on channel research provides insights into research trends. This multidimensional analysis offers an integrated guide to extant literature, as well as an outline of promising directions for research, in light of the most significant trends.     

Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research

The authors review 50 empirical retailing research papers that have appeared over the last 20 years to take stock of what we know, need to know better, and do not know yet about within-retailer cross-channel effects of omnichannel retail marketing strategies on (a) consumer responses over their purchase journeys, i.e., online and/or offline search, purchase intention, frequency, amount, returns, loyalty, and (b) the retail firm's aggregate outcomes (e.g., sales, costs, profits, product returns) by channel and overall. Specifically, the authors focus on five strategies: (1) the addition of online channel by an offline retailer; (2) the addition (or subtraction) of offline channels by an online retailer; (3) addition of mobile shopping channel (website and/or app) by offline and/or online retailer; (4) cross-channel integration strategies; and (5) retail marketing mix strategies. The author/s integrate findings from empirical research on these strategies into a number of ‘insights’ about ‘what we know’. Prominent among these are the following: Adding a transactional online channel to an offline channel improves the retailer's overall sales even though offline channel sales can be cannibalized to some degree. Adding an offline channel by an online retailer, however, boosts online channel sales as well as overall sales of the retailer. Similarly, adding a mobile shopping channel usually increases customer purchase frequency and amount and overall sales of the retailer in the long-term. Strategies for greater cross-channel integration generally have a positive effect on a retailer's overall performance while online advertising has positive effects on offline channel consideration and sales as well as overall sales of a multichannel retailer. Other insights or findings that need further study or open questions are also identified. The paper closes with managerial implications of the derived empirical insights, and suggestions for future research.     

Conceptual and empirical developments of marketing channel conflict

Managers regularly have to struggle with conflict within the marketing channel and it is therefore important that marketing managers should have an understanding of conflict and its meaning in the channel setting. This paper attempts to provide a background to this understanding by reviewing the conceptual and empirical developments in the field of marketing channel conflict. These developments are drawn together into an integrated model of current research into channel conflict.     

The Future Scope of Netnography and Social Network Analysis in the Field of Marketing

The marketing landscape has evolved to a great extent with the advent of Internet strategy integration, refined Internet marketing metrics, increase in wireless networking, rising consumer ownership of computers, the era of big data and e-commerce, influencer marketing, and the evolution of the Internet. To tap this virtual environment, newer methods of Internet research are required. This article studies the usage of two Internet research methodologies—Netnography and Social Network Analysis—and explores their potential toward the domain of marketing. An exhaustive literature review was conducted and after analyzing the previously published literature in this domain, it is seen that a clear link between these methodologies and the field of marketing has not been established. With a detailed analysis of previously published research work, using these two methodologies the authors are able to derive correlations with marketing concepts and are able to establish the future potential of the two methodologies of Netnography and Social Network Analysis as marketing research methodologies.     

Global Marketing Channels and the Standardization Controversy

Abstract

Since the early 1960s, standardization has often been viewed as an efficient strategy for global marketers while others have argued for the relative merits of adaptation. A review of the literature reveals two important points: first, relative to other areas of marketing, channels of distribution are given short shrift in the standardization versus adaptation debate; second, of the existing literature on the standardization of global marketing channels, academicians and practitioners generally concur that marketing channels cannot be standardized. This conclusion may be premature. Thus, this paper offers a conceptual framework for the possible standardization of global marketing channels. A schematic model of the domestic marketing channel development process is extended to the global arena and a framework for the evaluation of the standardization alternatives in the international marketing channels development context is presented.     

Connected internationalisation processes: the case of internationalising channel intermediaries

Based on a network approach to internationalisation, the paper presents concepts for analysing companies’ processes of internationalising in a moving context of other firms internationalising. The analytical problem and research question of the study is: How are firms internationalising in a continuously moving context of other, connected firms that are internationalising concurrently? The idea of connected and overlapping network processes is introduced as an analytical tool for approaching the problem. The concept spatial overlapping is applied to analyse geographical aspects of overlapping internationalisation processes.These processes are illustrated with an empirical study of the internationalisation processes of channel intermediaries. The empirical aim of the study is to complement earlier research into the internationalisation of manufacturing firms, service firms, retail chains, etc. with a study that puts channel intermediaries in focus. Connected internationalisation processes are illustrated with a case from the electronic component distribution industry.Two issues are brought up in the analysis of the case: various ways of handling concurrent and connected internationalisation processes, and of handling the resulting spatial overlapping processes, including the redefinition of market regions, regionalisation. In the final implications, the handling of network contradictions and tensions emerging from connected internationalisation processes are elaborated on in a model suggesting further research into this line of internationalisation research.     

The omnichannel continuum: Integrating online and offline channels along the customer journey

This paper provides a framework for conceptualizing omnichannel integration as a continuum, identifies phenomena that determine how firms should position along that continuum, and summarizes empirical research regarding these phenomena. The framework combines the customer journey (search to purchase to aftersales) and channel choice (online vs. offline). This generates a range of omnichannel strategies, anchored by “Unconnected” on one extreme and “Complete” on the other. In between, “Vertical” strategies integrate channels over the customer journey, while “Horizontal” strategies integrate across channels at a given stage in the customer journey. We draw on more than 200 articles to identify 10 consumer and marketing phenomena (“determinants”) that influence where a firm should position along the continuum. This however raises challenges. For example, empirical research surprisingly finds many customers belong to an offline-focused segment. This suggests a Vertical strategy linking offline channels. However, today's turbulent retail environment questions whether the offline-focused segment will endure. Should the retailer cater to offline-focused customers or facilitate their progression to “multichannelism”? Another finding is that consumers strongly prefer consistency across channels. This suggests a Horizontal strategy. However, consistency might create channel cannibalization. How can the retailer avoid this? We discuss these and several other findings regarding the impact of the 10 determinants on omnichannel continuum strategy. We identify issues researchers need to research and managers need to consider when developing omnichannel continuum strategy.     

Cross-border marketing ecosystem orchestration: A conceptualization of its determinants and boundary conditions

The authors propose that the current trends and developments in the international marketplace call for a new theoretical concept-based approach to inform and guide cross-border marketing strategy. Specifically, the authors label this approach marketing ecosystem orchestration (MEO). The marketing ecosystem is defined as connected, interdependent, and co-evolving sets of actors, activities, and institutions enabling the marketing of an offering that has value for customers, clients, partners, and society at large. MEO is a new strategic approach for an internationalizing firm to achieve sustained value creation, value appropriation, and growth in a host market. Orchestration involves developing and/or coordinating the ecosystem’s interdependent – but independent actors, resources, information, processes, and services to create, co-create, and appropriate value from firms’ market-based assets. The authors theorize three components of MEO – the orchestration of supply chains and fulfillment networks, marketing communications, and transactions and payments sub-ecosystems – and develop a conceptual framework and propositions influencing the determinants of MEO adoption by the focal firm. This paper concludes with managerial implications and offers several new directions for international marketing research.     

Consumer innovativeness and its correlates: A propositional inventory for future research

This article summarizes the results of a systematic review of the literature on consumer innovativeness and its correlates and provides a propositional inventory for future research. The authors identified seventy-nine relevant empirical articles from international journals through a search of multiple databases using specific search terms, a manual search of marketing and consumer behavior journals and a cross-reference search. The results show that innovativeness consists of different levels of conceptualization and operational processes. Based on these different conceptualizations, the authors offer propositions for further empirical exploration on consumer innovativeness.     

基于渠道细分的营销资源最优化分配方案

多渠道营销是通过两种或多种不同渠道同时向客户提供信息、产品、服务和支持的行为。多营销渠道的细分与构建要考虑三个方面的因素:一是营销渠道细分及布局的合理性;二是营销渠道管理的有效性;三是营销渠道效能评估的科学性。本文主要研究的是营销渠道管理的有效性,即营销资源如何正确、合理、有效地分配至每一个渠道,最大化每个渠道的效益,使公司获得最大利润。本文拟通过建立营销资源最优化分配模型,为企业管理人员在进行多渠道营销资源分配决策时提供科学依据。     

研究型购买者消费渠道转换模型研究

多渠道环境下,消费者试图通过增加信息搜索渠道数量,最终选择最为拟合自身需求的购买渠道。消费者特别是研究型购买者在产品既定的情况下会根据自身对消费渠道的感知价值决策是否采取渠道转换行为。本文通过文献回顾,提出感知价值的维度,并以其为自变量,根据期望效用理论设计研究型购买者的渠道转换模型,以及多渠道零售环境下的渠道策略。     

Upstream social marketing strategy: An integrated marketing communications approach

This article provides an organized approach for managers to develop social marketing strategies that target upstream decision and policy makers. A conceptual application model and five-stage process is presented for an upstream social marketing strategy based on integrated marketing communications (IMC). IMC concepts are described in the context of social marketing, as well as specific stages for creating an IMC social marketing strategy; these include target audience research and determination, channel selection and integration, strategic message creation, and measurement and control. A central and novel feature of the IMC social marketing strategy model is the simultaneous targeting of an upstream decision maker and influential peripheral (upstream) audiences in order to triangulate and increase campaign effectiveness. An IMC approach to upstream social marketing ensures consistent, persuasive messages specifically crafted for the selected target audiences and coordinated through precise channels to maximize impact. This multi-channel, multi-audience approach to message creation and channel selection produces synergies that increase the potential to influence an upstream decision/policy maker.     

Review of studies on digital transaction platforms in marketing journals

ABSTRACT

Digital transaction platforms now intermediate a large number of transactions between end-customers and independent sellers and service providers in many parts of the economy. In retail, for example, Amazon.com now intermediates transactions between end-customers and hundreds of thousands of independent sellers worldwide, while Etsy.com connects artists, crafters, and collectors with buyers of a large range of niche and rare products. The growing popularity of digital transaction platforms, therefore, has significant implications for retail, marketing and distribution scholars as the existing interaction patterns in the value-chain are increasingly replaced by new digital intermediaries. The purpose of this review is, therefore, to examine, through an extensive and rigorous review of research on digital transaction platforms in marketing journals, what we know and what opportunities lie ahead to expand the theoretical and empirical understanding of digital transaction platforms. The review shows that despite increasing multi-disciplinary and managerial interest towards digital transaction platforms and the platform economy, they remain largely unexplored in marketing journals, and the existing research and theorizing attempts remain fragmented. Therefore, there are many opportunities for marketing, retail and distribution scholars to, for example, collaborate with industry and practitioners in order to gain new perspectives and access to novel data sources, and for example, meet the emerging funding requirements of many universities and governmental funding agencies for more rigorous multi-disciplinary research on digital markets and digital business models.     

Influence of country and company characteristics on international business decisions: A review,conceptual model,and propositions

This research advances four propositions and a conceptual model of country and company characteristics influencing key International Business Decisions (IBDs). The IBDs in this study are country selection and evaluation, entry mode, segmentation-targeting-positioning, and the marketing mix – the first two in the international business domain, and the latter two in the international marketing field. The conceptual model and related four propositions are advanced, based on an extensive literature review and subsequent in-depth review of 169 published research papers on major IBDs and their determinants, namely, country characteristics, including opportunities, risks, and various distances between the host country and home country, and company characteristics, which include international business experience, assets/resources, and expansion/growth strategies. Managerial implications and directions for future research are discussed.     

Psychological meaning: Empirical directions for identification and strategy development

Meaning is important in attitude and perception research. Consumers can assign meanings to product attributes that do not conform to standard usage or have not been considered by the researcher, and a misunderstanding of that meaning can result in ineffective marketing strategy. This paper explores different levels of meaning and, through empirical example, presents a methodology for investigating the psychological meaning of attributes. Alternative methodologies for studying psychological meaning are discussed, and techniques for investigating the strategic operationalization of empirical semantic meaning results are illustrated using a mass transit study.     

Cognitive foundations of firm internationalization: A systematic review and agenda for future research

Managerial cognition has a fundamental role in the internationalization of firms. However, there exists no coherent understanding of how prior research has examined and captured the cognitive foundations of internationalization. This paper provides a systematic review of this body of literature. The review identifies three main streams of research that, overall, consists of nine more specific research areas. We show that especially the areas addressing (1) managerial learning, (2) characteristics of upper echelons, (3) intra-organizational perceptions, and (4) external actors’ perceptions provide opportunities for the further advancement of internationalization literature. For harnessing these opportunities, we find that the microfoundational approach could support the empirical examination of the cognitive foundations and would notably contribute to the Uppsala model-based theorization of the firm internationalization process.     

Social Contagion and Customer Adoption of New Sales Channels

We develop and test hypotheses regarding the role of social contagion in customer adoption of new sales channels. We examine two aspects of social contagion (local contagion and homophily) and two channels (Internet and bricks-and-mortar store). Drawing on diffusion theory, we propose a conceptual framework that identifies the factors associated with new channel adoption. Using longitudinal data from a major catalog company and a discrete-time hazard model, we find that (1) social contagion plays a major role in the adoption of new sales channels, (2) both local contagion and homophily influence channel adoption, (3) longer-tenured customers are less influenced by social contagion, and (4) adoption of the Internet channel is more influenced by social contagion than adoption of the bricks-and-mortar store. Managerially, our results suggest that marketing programs that encourage social contagion, for example, word-of-mouth campaigns, be targeted based on both physical and socio-economic proximity, and that such campaigns will play a bigger role in the adoption of new-to-the-world channels.     

电子商务对营销渠道管理的影响

通过对近些年来学术界关于电子商务对营销渠道影响相关文献的总结,本文评述了电子商务在营销渠道设计、营销渠道成员选择和管理、营销渠道评价等方面的影响:在营销渠道设计方面,学者们的研究集中在电子商务作为一种新的营销渠道的特性,与这一个新的渠道和旧渠道之间的关系等方向;在营销渠道成员选择和管理方面,相关研究主要集中在渠道冲突管理上;营销渠道评价方面的研究主要是为新的渠道设计新的绩效评价体系。因此,未来的相关研究应该集中在电子营销渠道和传统营销渠道的协同和替代作用,不同国家、不同经济水平和文化氛围对于渠道间关系的影响,以及多种渠道下企业营销策略研究等方面。     

Assessing customers’ perceived value of the online channel of multichannel retailers: A two country examination

Given the constant and often dramatic technological advancements that facilitate retailing, especially online channel adoption by industry and customers, research focusing on customers perceived value of the online channel of multi-channel retailer’s requires conceptual and empirical elaboration. This study advances understanding of customer perceived online channel value and how customer perceptions of value effect online channel satisfaction and online channel loyalty. Using data from a multi-country study, we provide a deeper understanding for multi-channel retailers of how to balance investments in various value drivers to enhance online channel satisfaction and customer loyalty.