The delisting of products by retail buyers

The main aim of the research reported here is to identify any patterns in the delisting behaviour of retail buyers, where a delisted product is defined as one which is removed from sale by a retailer but which continues to be sold by other retailers. The influence of the retail buyer in the marketing of consumer products has become ever more significant. Much academic research into retail buying has aimed at identifying criteria that affect purchasing decisions but few generalizable findings have emerged due to the context‐specific nature of such decision making. In this research a specific context is chosen, that of the de‐selection or delisting of products, a topic that has received little attention to date.

The results of interviews with 125 buyers, working for large and small retailers, on their reasons for 290 examples of product delistings are reported. The influence of more detailed contextual variables such as the buyer's age, experience and qualification, the product type, and the source of the product are examined together with a number of reasons for delisting the product. Many of these contextual variables, particularly the size of the retail business and whether the buyer had experience of working in a retail outlet, correlated widely with the relative importance of decision variables. Buyers working for smaller retailers tended to delist because of low sales volumes. Nett profitability, the reason why products should be delisted, was rarely cited as a major criterion.

More detailed analysis of the data set using factor and cluster analysis revealed that delisting decisions could be categorized into two types, each defined by combinations of contextual and decision variables. The most important variables in distinguishing between the two types of decisions were the buyer's age and experience as a buyer (contextual variables) and the decision criteria of nett margin being too low or the selling price to the retailer being too high. Younger, less experienced buyers were more likely to delist products because of low nett margins and high buying prices. Older, more experienced buyers were likely to delist for reasons other than these. The implications for retailers and for their suppliers of both the major and minor findings from the study are discussed.     

The impact of retail buyer innovativeness on suppliers’ adaptive selling in Japanese buyer–supplier relationships

Abstract

We investigate the critical role of retail buyer innovativeness in Japanese buyer–supplier relationships and explore its link to suppliers’ adaptive selling, cooperative relationships, and retail competitiveness. Further, we examine how process conflict between merchandizing and store divisions moderates the relationship between retail buyer innovativeness and suppliers’ adaptive selling. This study employs a structural equation model using survey data from 246 heads of merchandizing divisions at Japanese retail companies. Our findings highlight the importance of both mitigating process conflict and facilitating suppliers’ adaptive selling in order to improve Japanese retailers’ competitiveness, especially when buyers are highly innovative.     

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.     

Understanding the Development of IOS-Based Trading Partner Relationships: A Structural Model with Empirical Validation

This study develops a research model that explains the interorganizational system (IOS) network development process in the buyer-supplier relationship. Particular attention is paid to the antecedents and consequences of two types of influence strategies— exercising power and offering IOS support—that a buyer firm often uses in increasing IOS usage with its suppliers. The research model is empirically tested with data obtained through a field survey from a sample of 233 suppliers, each exchanging electronic data interchange (EDI) documents with a nationally known retailing buyer in the United States. We find that the buyer's decision to offer EDI-related support to a supplier is negatively associated with the transaction volume with the supplier but positively with the supplier's IT capabilities as well as the supplier's transaction-specific investments made toward the relationship with the buyer. On the other hand, the buyer's decision to exercise power to a supplier is found to be negatively associated with the transaction volume between the trading partners. Our findings also indicate that offering EDI support, rather than exercising power, is more effectual in inducing greater EDI usage between the trading partners. Finally, the buyer's EDI support is found to be positively associated with suppliers' perceived benefits of using EDI in the relationship that, in turn contributes to more voluntary use of EDI with the buyer.     

Buyer Power,Transport Cost and Welfare

Manufacturers produce substitute products and sell to consumers in a linear city through competing retail stores. A low cost store obtains large market share by selling at low prices. Assume that a big retailer may exert buyer power by demanding wholesale discounts from manufacturers. The model identifies exclusionary effects of buyer power against competing retailers. It is also found that certain level of buyer power of a discount retailer may maximize social welfare, while that of a regular price retailer may maximize total consumer surplus. Nevertheless, excessive buyer power hurts both consumers and society.     

Taiwanese Retailing: Market Analysis and Retail Branding Model Application

ABSTRACT

The Taiwanese retail market is in a highly competitive stage. In the past three decades, the Taiwan retail grocery market has experienced many developments and changes, and recently, has started to realize the importance of developing its own retail brand. Although the idea of retail branding is still new in Taiwan, the major hypermarket players have tried to build up their own brand image and create new own label products which differ from other competitors. This paper explores retail branding in the Taiwan hypermarket industry through macro/micro environment analysis and applying retail branding models to the Taiwanese retail market. The macro/micro environment analysis is undertaken by the two STEPs model and the retail branding model is created from Dawson's three levels model combined with previous studies and theories. The approach in this study involves literature reviews and secondary research in the field of the Taiwanese retail market. The outcome of this study is to highlight key issues that deserve further research.     

Analysis of the Awareness of Green Products in the City of Kolkata

ABSTRACT

In this study, the author analyzed the awareness of the people regarding green products. Green products are available from the retail market. A questionnaire survey was conducted of people in three different places in Kolkata, India. The questionnaire contained “yes/no” answers, and a ranking of the questions were modified for the different venues. Ranking was done by using the coefficient of variation method. Because of the variation in the answers, the central tendency of the feedback changed the questions. The survey was administered to 315 people from each area. After statistical quantification of the feedback from the survey questionnaire, using Spearman's correlation coefficient, the variability was tested, to identify the true comments of the people. It was found that the North Kolkata people from the Shyambazar area are most aware of green products.     

Author/Abstract Index

Abstract

This study assesses consumer perceptions of advertising messages for two proenvironmental products by examining the effectiveness of environmental versus personal benefit appeals and .99 versus .00 price endings. The authors borrow from Prospect Theory and Mental Accounting Theory to explain consumers' perceptions of psychological pricing and product attributes. In addition, the moderating role of environmental skepticism is assessed as it relates to the effectiveness of environmentally friendly advertisements. Results indicate that consumers feel that some products advertised with environmental appeals are more costly, but are not perceived as lower quality as compared with products advertised with personal benefits. Findings also indicate a price ending × appeal interaction for two different products, but the effects vary between the products. Finally, environmental skepticism is found to moderate perceptions of the message appeal. Implications are provided.     

The Moderating Influence of Country of Origin Information Seeking on Homophily and Product Satisfaction

ABSTRACT

The purpose of the research was to investigate when consumers concurrently select a range of retail products online, what percentage of products need country of origin (COO) identification. Moreover, will COO information seeking positively moderate the relationship between homophily and product satisfaction. Participants were recruited through an online survey platform (MTurk). The results appear to be the first to quantify the number of retail products within a basket that need some form of country of origin (COO) identification. Electronic word of mouth (eWOM, e-reviews) has become an important factor in the purchasing process for consumers. When COO information is unavailable, consumers will search online reviews to determine the COO of products. When reading the e-reviews, consumers will also evaluate the reviewer and the similarities they share. If they are not similar (low in homophily) their satisfaction with the product is low. By contrast, when homophily is high, product satisfaction is high. Specifically, as homophily increases, an individuals' need for COO information seeking has a positive moderating effect on their perceived product satisfaction. Online retailers promoting their products could benefit from sales increases due to their ability to provide COO information at a low cost, which in turn, provides ease, peace of mind and purchase satisfaction for consumers.     

Retail Salespeople's Training and Its Impact on Attitudes Toward Handling Consumer Complaints

Abstract

This paper reports the results of a study of retail salespeople's training and its impact on attitudes toward consumer complaints. A sample of 59 retail salespeople from a variety of retail stores were surveyed via a self-administered questionnaire.

Significant differences were found between salespeople with more formal training and those who received informal/no training when they were hired into the sales positions. Findings indicate that proper training can equip salespeople to deal with customers who complain.     

The Internet and Its Relationship to Buyer Behavior Theory

ABSTRACT

The Internet is the newest, most-rapidly changing and fastest-growing buying medium existing today. Its markets are increasing in number and complexity, more nearly reflecting the population in general. A valuable academic model for Internet marketers to consider when developing a business plan is an early buyer behavior model developed by Phillip Kotler, his Input-Output Model. Internet marketers should investigate outside influences on the potential buyer (Kotler's Inputs), means of reaching the prospect effectively (channels), the buyer's frame of mind (processor), and the choices available (outputs). Current “e-tail” examples are given for each of the four components in Kotler's model. Consulting companies that can assist marketers in attracting buyers have found the following techniques helpful: developing or fine tuning Internet sites, developing site-partnering strategies and online focus groups, as well as providing programs that watch prospects as they peruse a site.     

A Hierarchical Model of Values,Leadership, Job Satisfaction and Commitment

Abstract

Using a structural equation modeling technique, we empirically tested a hypothetical hierarchical model where personal values leadership styles job satisfaction organizational commitment. Survey data (N = 205) were collected from retail managers of national retail chain store companies. Our exploratory study found that personal values influenced retail managers' leadership styles, which in turn influenced their intrinsic and extrinsic job satisfaction. Job satisfaction ultimately influenced organizational commitment. Theoretical and managerial implications for human resources management are discussed.     

The Impact of Brand Delisting on Store Switching and Brand Switching Intentions

A tool retailers often use to improve their negotiating position with brand manufacturers is to delist - or threaten to delist - the manufacturers’ brand. Because brand manufacturers rely mainly on retailers to sell their products to consumers, a brand delisting will cause a sales loss for the brand manufacturer. Therefore, many brand manufacturers feel enormous pressure to give in and improve buying conditions to favor the retailer. The question thus emerges: Can a brand manufacturer resist a retailer's threat to delist its brand(s)? If a brand delisting severely hurts retail sales, it is easier for a brand manufacturer to resist. The authors study the impact of brand delistings on store switching and brand switching using a controlled online experiment and in-store shopper survey. They develop and test a conceptual model with several antecedents of consumers’ reactions to a brand delisting and conclude that brand equity, market share, and the products’ hedonic level drive store and brand switching.     

Buyer‐seller relationships: A conceptual model and empirical investigation

Increasing emphasis is being placed by marketing managers on the need to build long‐term relationships between themselves and their customers. Analysis of long‐term buyer‐seller relationships has drawn heavily on the literature of social psychology, especially in making comparisons with family relationships. It has been proposed that buyer‐seller relationships go through some form of life‐cycle, paralleling cyclical relationships in other areas of human activity. However, models of the evolutionary development of buyer‐seller relationships have remained largely theoretical, with little empirical validation of the life cycle concept, or analysis of the changing composition of a relationship as it progresses through a life cycle.

This paper provides cross‐sectional empirical evidence of the existence of a buyer‐seller relationship life cycle within the investment services sector. The elements that buyers perceive as being important in holding a relationship together are dependent on the duration to date of the relationship. In the early stages of development, selling pressure is perceived as being a dominant element in relationship development, giving way to judgements of ethical credibility and empathy as the relationship develops.

From this initial survey of investment services customers, a number of implications for relationship marketing strategies within the services sector are suggested.     

Buying Behavior of Western European Food Retailers

Abstract

The aim of this study has been to analyze important aspects of buying behavior of food retailers, i.e., trade buyers' evaluation of product and vendor attributes, based on a number of background variables, when choosing a new supplier of an already well-known product category. The study encompassed the retailers' buying behavior for pork, fish and cheese products. By conducting a conjoint analysis in sixteen Western European countries (15 'old' EU Countries (except Luxemburg), plus Norway and Austria), it is demonstrated that the traditional four Ps are losing ground to some previously neglected attributes, and that it is possible to generalise retailers' buying behavior for different food products across countries, retail organizations, and buyers.     

Perceived buyer satisfaction and selling pressure versus pricing policy: A comparative study of retailers in ten developing countries

Observation of retail practices in ten developing countries in Asia, Africa, and South America explored the relationship between perceived buyer satisfaction and selling pressure as they relate to pricing policy. The study found that price bargaining appears more prevalent in Asia than in South America, and buyer satisfaction was lower for retailers that bargain than for retailers using a fixed-price policy. Selling pressure was higher among retailers that bargain than retailers using a one-price-for-all policy. There were, however, several interesting intercountry differences.     

Effects of perceived retail crowding: a meta-analytic study

ABSTRACT

We performed a meta-analysis to understand the crowding construct in the retail context. The systematic review identified 535 studies, of which 69 were present in the analysis conducted, generating 504 quantitative relationships. Our meta-analysis indicated that the perception of crowding generates many negative feelings, a few positive feelings, minimal perceived value, low attractiveness of the environment and low short- and long-term consequent behaviours. At the methodological level, it was found that student samples and experiments tend to produce a stronger impact on the relationship between crowding and satisfaction. It was also found that the effect of crowding perception on customer satisfaction differed according to cultural influence. Finally, the results did not demonstrate an influence of the type of density (human vs spatial) on the relationship between retail crowding and satisfaction.     

To Be or Not to Be [Locked in]: An Investigation of Buyers' Commitments of Dedicated Investments to Support New Transactions

ABSTRACT

This study draws on two prominent theoretical frameworks, transaction cost analysis and social exchange, which serve as the basis for much of the empirical literature in relationship marketing to investigate the investment behavior of industrial buyers. Specifically, we examine the manner by which situational and contextual factors identified from those frameworks influence buyers' commitment of dedicated investments to support new transactions within ongoing exchange relationships. Our empirical results show that buyer dedicated investments are positively influenced by the extent of supplier dedicated investments, thus supporting the safeguarding rationale posed by transaction cost theory and the reciprocal nature of commitments derived from social exchange theory. Such investments are also positively influenced by the extent of past adaptations made within the pre-existing relationship, consistent with the generalized hostage explanation from the transaction cost literature and theories of the incremental development of relationships. These investments are also positively influenced by the size of the procurement but negatively influenced when a multisourcing purchasing strategy is being pursued, which are consistent with means to manage dependency. It was also found that buyer investments are not uniformly influenced by perceived environmental uncertainty related to supply and market sectors and technological conditions, suggesting that buyers respond to the risks associated with each of these environmental sectors in a distinctive manner.     

On manufacturers complementing the traditional retail channel with a direct online channel

With the explosion of the Internet and the reach that it affords, many manufacturers have complemented their existing retail channels with an online channel, which allows them to sell directly to their consumers. Interestingly, there is a significant variation within product categories in manufacturer's use of the Internet as a direct distribution channel. The main objective of this study is to examine the strategic forces that may influence the manufacturer's decision to complement the retail channel with a direct online channel. In particular, we are interested in answering the following questions:

1. Why is it that in some markets only a few firms find it optimal to complement their retail channels with a direct Internet channel while other firms do not?
2. What strategic role (if any), does the direct Internet channel serve and how do market characteristics impact this role?

To address these issues we develop a model with a single strategic manufacturer serving a market through a single strategic retailer. In addition to the focal manufacturer's product the retailer carries products of competing manufacturers. Consumers in this market are one of two types. They are either brand loyal or store loyal. The retailer sets the retail price and the level of retail support, which impact the demand for the manufacturer's product. The retailer's decisions in turn depend on the wholesale price as well as the Internet price of the product if the manufacturer decides to complement the retail channel with an online channel. Our analysis reveals that the optimality of complementing the retail channel with an online channel and the role served by the latter depends critically upon the level of support that the retailer allocates to the manufacturer's product in the absence of the online channel. The level of support allocated by the retailer, in the absence of the online channel, depends upon the retail margins on the manufacturer's product relative to that on rival products in the product category. When the size of the brand loyal segment is small relative to the size of the store loyal segment then in the absence of the online channel, the manufacturer can lower wholesale price and enhance retail support, especially when the retail margins on the rival products are low. In contrast, when the size of the loyal segment is large and the retail margins on rival products are high the manufacturer will find it more profitable to charge a high wholesale price even if that induces the retailer to extend low levels of support. If the manufacturer decides to complement the retail channel with an online channel, some consumers who would have purchased from the retailer might prefer to purchase online. Our analysis reveals that when consumers' sensitivity to price differences across the competing channels exceeds a certain threshold it is not optimal for the manufacturer to complement the retail channel with an online channel. However, this price sensitivity threshold itself depends upon product/market characteristics, suggesting that manufacturers seeking to complement their retail channels with an online channel should look beyond the nature of threat the online channel poses to the retail channel in devising their optimal distribution strategies. When the retail margins on rival products are sufficiently small, complementing the retail channel with an online channel when optimal allows the manufacturer to price discriminate and enhance profits. In contrast when retail margins on rival products are sufficiently high, complementing the retail channel with an online channel serves to enhance retail support. We also identify market conditions under which profits of both the manufacturer and the retailer are greater with the online channel than that without it. This is particularly interesting since the online channel competes with the retail channel.     

The mall as bazaar: How kiosks influence consumer shopping behaviour

Abstract

The addition of kiosks (e.g. pushcarts, stalls, etc.) to malls has changed the mall environment. However, no research to our knowledge has been conducted to determine if that change has been received positively or negatively by shoppers. Our study investigates how kiosks and kiosk salespeople affect consumers' emotional responses and shopping behaviours towards the mall. Using a between-subjects design, we found that the very presence of kiosks negatively affects shoppers' perceptions of the mall environment. Whether a kiosk salesperson was aggressive or passive had virtually the same effect upon shoppers. Similarly, passive kiosk salespeople and the absence of kiosks resulted in relatively the same level of arousal on shoppers, while aggressive salespeople caused a higher level of arousal than either of the other two conditions. This contributes to the extant literature on retail atmospherics and perceptions of retail salesperson behaviours.