The effect of time-varying factors on promotional activity in the German milk market

Promotional sales are an essential pricing tool in the marketing mix of food retailers, which induced numerous studies on the topic. However, few studies have considered time-varying factors of promotional activity in retailing. This study analyzes the effect of time-varying factors on promotional activity in German food retailing using an extensive scanner data set of weekly milk prices. I used a zero-truncated negative binomial model to estimate the time that elapsed between promotional sales. The study shows that promotional activity is high in times of peak demand, when recent unit sales are low, and when the regular price has recently been changed. The results provide compelling evidence that time-varying factors influence the retailer's pricing behavior.     

The influence of retailing-mix levers on private label market share: The case of the Italian FMCG market

An in-depth analysis of the impact of retailing-mix levers on private label market share in the Fast Moving Consumer Goods sector in Italy is made. The direction and intensity of the impact of assortment, price and sales promotion is measured for different product categories. OLS and GMM regressions run on an IRI Group dataset indicate a strong positive effect of product range, which can be considered as a proxy of on-shelf brand visibility. Increasing private label assortment share thus appears to constitute the key supply-side factor in augmenting sales share on the Italian grocery retailing market.     

The effects of market orientation on subsidiary performance: Empirical evidence from MNCs in Turkey

Much scholarly work has been devoted to studying the performance implications of market orientation. This study examines the direct and indirect effects of market orientation on financial performance of the subsidiaries of MNCs located in Turkey. The findings indicate that a market orientation affects financial performance of MNC subsidiaries that operate in diverse and complex economic, cultural, and political environments of the Middle East. Moreover, authors demonstrate that the customer-related mechanisms (customer satisfaction and retention) mediate the market orientation–performance relationship. The paper also discusses the theoretical and practical implications of study findings.     

股利政策的股东财富效应:来自中国股市的经验证据

Based on the special separated equity management structure of the listed companies in China and using a sample of the listed companies with distributed dividend in 2003 and 2004, this paper tests the shareholder wealth effects of dividend policy in Chinese separated equity market. Results show that shareholders of non-circulating stock get a high return rate by cash dividends, and circulating shareholders obtain a high short-term return rate by stock dividends. Translated from Nankai Guanli Pinglun 南开管理评论 (Nankai Business Review), 2006, 9(2): 4–10     

The modernization of fresh food retailing in China: The role of consumers

Since 2002, the Chinese government has initiated the “Wet Market Transforming into Food Supermarket (WMTFS)” program that aims to transform the traditional fresh food retailing system into a more efficient system that adopts a supermarket operation mode. However, after years of effort, the process of implementing the WMTFS program has been painfully slow. In addition to several supply side factors, this paper focuses on the consumer demand side using survey data in three large Chinese cities to identify the factors affecting consumers' decisions to buy fresh food from traditional vs modern retail formats. It further explores regional differences in consumers' shopping behavior. We find that freshness, accessibility, and whether buyers can bargain are influencing factors and the effects of socioeconomic factors such as income and storage facility are very limited. In addition, we find regional difference exists in consumers' retail format preferences. We suggested that managers of fresh food supermarket should enhance product freshness and safety in the future. Meanwhile, since traditional retail formats are still preferred by many consumers, the policy-makers should give a further thinking on the specific way of transformation.     

我国在稀有金属出口市场的市场势力研究——以钨矿、稀土金属为例

本文针对我国在稀有金属市场拥有资源优势而无话语权的现状,提出了"中国大市场悖论"这一论点,并以钨矿、稀土这两大稀有金属市场为考察对象,证实了这一悖论的存在。实证研究表明,随着钨矿的过度开采,我国钨矿生产的边际成本逐年上升。我国稀土生产已初具规模化生产特征。钨矿、稀土等出口市场都是非完全竞争市场。我国在20个钨矿出口市场中,仅在孟加拉、印尼、巴基斯坦、瑞士等少数市场拥有一定的市场势力。我国在17个稀土出口市场中,仅在香港、印尼和泰国市场拥有有限的市场势力。基于我国具有资源优势而无定价的现状,提出了在稀有金属开采市场提高资源税,培育稀有金属金融衍生品市场,构建稀有金属出口价格联盟等政策建议。     

调控上网电价对稳定市场价格的政策效果实证研究

基于VAR模型和中介效应模型等定量分析手段,研究了我国上网电价波动对市场价格波动的影响效应,探索调控上网电价对稳定市场价格是否具有积极的政策效果。结果表明,上网电价的调整在滞后一期会对CPI和PPI产生负向冲击,从而抑制市场价格上涨,而随着滞后期不断增加,影响作用趋于减弱;同时,在上网电价波动影响市场价格波动的过程中,存在CPI和PPI之间相互中介效应,即存在上网电价→PPI→CPI、上网电价→CPI→PPI的影响途径。总体来看,我国调控上网电价,在一定程度上起到了稳定国内市场价格的积极作用。     

The retailing environment in Ireland and its effect on the chilled ready meal market

Food retailing in the island of Ireland has experienced a number of changes with the relatively recent arrival of the UK multiples. This preliminary study examined retailing developments in Ireland focusing on the chilled ready meal sector and on an identification of the factors that influence chilled food choice. Interviews, supermarket analysis, consumer focus groups and questionnaires revealed that the chilled ready meal market was experiencing a period of growth assisted by the arrival of the UK multiples, but there was great potential to further expand the market. Convenience was cited as the primary reason for purchase of chilled ready meals but taste continued to play an important role in chilled food choice. Retailers must respond by informing and educating consumers about their product offerings. In addition, they must listen to the unique needs and wants of consumers on this island to assist in the development and provision of a range of chilled ready meals suitable for the Irish market‐place.     

Price-matching guarantees as signals of low store prices: survey and experimental evidence

Many retailers offer a price-matching guarantee that promises to pay consumers the difference if they find a lower price elsewhere. This article proposes that the effectiveness of a price-matching guarantee as a signal of low store prices depends on individuals’ beliefs about the degree to which other consumers in the market engage in price search, enforce price-matching guarantees, or both. Consistent with signaling theory, results of a survey and two experimental studies demonstrate that market level factors affect consumer beliefs about the extent to which others engage in price search and thereby the effectiveness of price-matching guarantees in lowering perceptions of store prices. The implications of the findings for retail strategy are discussed along with directions for future research.     

The effect of consumer food creation on the food consumption experience

Two experiments show that the role the consumer plays in the creation of their food can affect the consumption experience. When guilt is present in the consumption of the food item, namely an unhealthy food item, having someone else create the food item increases taste evaluations, attitudes, and behavioral intentions. However, when guilt is not present, as in the case for healthy foods, there is no difference in food evaluations when the end consumer or another creates the food. These results have important implications for food retailers, food service establishment, and food delivery companies.     

The differentiated effect of advertising on readership: evidence from a two-sided market approach

In this paper, we empirically analyze the French print media market by modeling the existence of a reciprocal effect between the size of the readership and the amount of advertising. For this two-sided platform, we measure the cross-effects of advertising on the readership and periodical popularity on advertising. By estimating a structural model of simultaneous demand equations, we quantify some crucial elements in designing pricing and product-differentiating strategies. We measure the impact of advertising on reader demand and find in the data that it has opposite effects depending on whether the publication presents informational or entertaining content. By taking into account the market interactions, we compute price and advertising elasticities. Our results show that advertisers targeting a specific category of the audience would choose its corresponding periodicals and would trade off the size of the readership for these periodicals and the advertising insert price changes. Also, advertising campaigns aimed at reaching a broader spectrum of the population should focus on popular titles and on titles for which demand is inelastic to ensure a more consistent impact of the campaign. Finally, for magazines with low price demand elasticity on the readers’ side, editors’ revenues could be improved by increasing prices. These combined effects should allow a publisher to generate positive margins from both sides of the market, for certain content categories.     

High ownership concentration and exporting of emerging market firms: evidence from Peru

Despite the extraordinarily high ownership concentration widely observed in emerging market firms as a result of institutional voids, there is little research on how this high ownership concentration affects the exporting behavior of emerging market firms. From principal–agent and institutional perspectives, we hypothesize that high ownership concentration has a negative relationship with export intensity, because, in emerging markets, highly concentrated ownership bridges the interests of owners (principals) and managers (agents) so that principals must be prudent in exploring risky international markets. Moreover, we hypothesize that export country diversification strengthens the relationship between ownership concentration and export intensity, because broad geographic dispersion increases risk exposure and principal-agent problems. Empirical analysis based on a panel dataset for publicly listed firms in Peru from 2005 to 2014 supports the hypotheses. The study highlights the risk aversion attitude activated by ownership concentration, an attitude that protects emerging market firms from overconfidently exploring international business opportunities. The study extends the conventional literature on the interface between ownership concentration and international business in an emerging market context. We also discuss the generalizability of the findings to other emerging markets, e.g. China.     

The Impact of Market Orientation on the Internationalization of Retailing Firms: Tesco in Eastern Europe

This paper investigates a Western retailer's market orientation levels in two emerging markets. We examine whether the market orientation-company performance link holds true for retailers in emerging economies, despite environmental differences. By using concepts from key studies we have assimilated a fully representative model - applied through interviews with top management from Tesco and its subsidiaries and affiliates in Hungary and Slovenia. Using this example, we find that the market orientation-business performance link is valid for Western retailers in emerging economies. Here, the retailer applied market orientation predominately through; the use of matching with suppliers of own brand goods; top management emphasis on market orientation and risk taking. Intelligence generation and dissemination was exercised via global processes such as brand review.     

Welfare versus market access: The implications of tariff structure for tariff reform

We show that the effects of tariff changes on welfare and import volume are fully characterised by their effects on the generalised mean and variance of the tariff distribution, implying two “cones of liberalisation” in commodity price space. Because welfare is negatively but import volume positively related to the generalised variance, the cones do not intersect, which poses a policy dilemma. We present a new radial tariff reform rule, which implies new results for welfare- and market-access-improving tariff changes. Finally, we show that generalised and trade-weighted moments are mutually proportional when the trade expenditure function is CES.     

Market integration and convergence to the Law of One Price: evidence from the European car market

This paper exploits the unique case of European market integration to investigate the relationship between integration and price convergence in international markets. Using a panel data set of car prices, we examine how the process of integration has affected cross-country price dispersion in Europe. We find surprisingly strong evidence of convergence towards both the absolute and the relative versions of the Law of One Price (LOOP). Our analysis illuminates the main sources of segmentation in international markets and suggests the type of institutional changes that can successfully reduce it.     

The effects of market structure characteristics on competitive reaction intensity: A longitudinal analysis

This study explores the effects of market structure characteristics and exogenous market interventions on competitive reaction intensity over time. It is found that moderate growth rate and moderate concentration induce greater competitive reactions. The effect of the exogenous intervention in the industry studied appears to have a dampening impact on competitive responses. Our research inquiry addresses some issues raised on competition, in general, by Weitz (1985) and specifically on competitive responses by Robinson (1988) and Gatignon, Anderson, and Helsen (1989). The authors express their appreciation to Lee Cooper, Imran Currim, Hubert Gatignon, Avijit Ghosh, Jagmohan Singh Raju and Bill Robinson for their helpful comments and to Mark Parry for his computer programming assistance. The authors gratefully acknowledge research support from the College of Business Administration, University of Georgia, and Graduate School of Management, Rutgers University.     

Cost of capital and market power: The effect of size dispersion & entry barriers on market equilibrium

A market power explanation for the observed empirical fact that large firms in a given industry pay less for their capital than small is developed. Larger firms in an industry are shown to pay less for their capital than small because they have more control over the market and the riskiness of their divided stream is correspondingly smaller. More firms in an industry with a given size dispersion raises the cost of capital to the incumbents, but proportionately more to smaller firms. However, the most significant result is that a greater dispersion of sizes will reduce the riskiness of the dividend stream of the larger firm and increase the riskiness of the smaller firm, causing an increase in the dispersion of capital costs. Hence product market power enhances capital cost efficiencies.     

The determinants of retailers' margin related bargaining power: evidence from the Irish food manufacturing industry

This paper investigates the determinants of retailers' margin related bargaining power in the context of food retailer-manufacturer relationships. The study is based on an empirical analysis of 97 trading relationships between Irish food manufacturers and their Irish and British retail customers. It complements earlier research, focused mainly on structural characteristics of the industries, by integrating product and relationship characteristics into the analysis. Using measures based on manufacturers' perceptions, the study finds that retailers' margin related power over food manufacturers is positively related to the importance of economies of scale in manufacturing, retail concentration and own brand penetration of the market. The results also show that retailers' margin related power increases as product shelf-life increases and as manufacturers' specific investments increase.     

The size of trading blocs Market power and world welfare effects

We construct an n-country n-commodity trade model to analyze the implications of bloc size for (Nash) equilibrium tariffs and welfare. The relationship between the absolute size of (symmetric) trading blocs and their market power is ambiguous, and we illustrate how this relationship varies with model parameters. In contrast, sufficiently large increases in the relative size of a bloc enhance its relative market power and cause the welfare of its country members to rise above the free trade level. We establish the existence of an optimal bloc size, and study the dependence of optimal size on the parameters of the model.