Interplays between manufacturer advertising and retailer store brand introduction: Agency vs. wholesale contracts

In retail supply chains, manufacturers' advertising for national brands and retailers' store brand introduction may relate to each other, and two types of contracts, i.e., agency contract and wholesale contract, are widely used. This paper uses game-theoretic models to investigate the strategic interaction between a manufacturer's advertising strategy and a retailer's store brand introduction strategy. We derive the equilibrium outcomes, including wholesale price, retail price, market demand, retailer's and manufacturer's profits under different contract forms. We find that when the product cost is small relative to the perceived value of the store brand, the introduction of a store brand will benefit the retailer. The retailer is more likely to introduce store brands under the wholesale contract than under the agency contract. In addition, compared with the wholesale contract, the agency contract may increase both the manufacturer's and the retailer's profits and lead to Pareto improvement for them.     

Country of Origin Association in Retail and Wholesale Branding

ABSTRACT

The purpose of this article is to consider country of origin in terms of its association with brand heritage and its implications in fashion branding, thus providing a new perspective within the context of retail and wholesale brands. This qualitative study demonstrates how country of origin is widely used as a communicative tool by retail and wholesale brands, associated with brand heritage. However, the way country of origin is manifested and/or associated (e.g., brand name, color, etc.) varies depending on a brand's history, positioning, brand value, and the type of market sector that the retail and wholesale brands are targeting.     

The state,small shops and hypermarkets: A public policy for retail,France, 1945–1973

Abstract

This article examines contemporary French retail history, studying both transformations in retail structures and evolutions in government retail policies from 1945 to 1973. It notably questions the existence of a defined public policy for the retail sector. Based on extensive archival research, it is designed to offer an overview of the topic in order to familiarise international scholars with French retail history, while stimulating discussion and providing case material to enable comparisons with other national cases.     

Resilience and response of wine supply chains to disaster: the Christchurch earthquake sequence

ABSTRACT

The study of resilience for organisations and their extended supply chains has become an important field given the increase of supply chain disruptions. The 2010 and 2011 Christchurch earthquakes provide an opportunity to examine the resilience of supply chains to a disaster; the specific context of this study is the product category of wine. Theoretically, we use a three phase model of disaster resilience; readiness, response and recovery, to frame our study of the wine supply chain. We adopt a case study method to examine five members of the wine distribution channel, as a subsector of the fast moving consumer goods (FMCG) industry, from the wholesale sector to retail. We identify key factors of supply chain resilience: building performance, distributed networks of locations and IT, owned assets, critical infrastructure and adaptable work force. We report on the actions taken and what can mitigate future risk and enhance resilience in FMCG supply chains.     

Culture,Perceived Value,and Advertising Acceptance: A Cross-Cultural Study on Mobile Advertising

Abstract

Adverting standardization has been widely discussed since 1990s. Recently, this discussion has been extended to mobile advertising. When it comes to adopt a standardization or localization strategy, it is important that marketers understand how mobile advertising is perceived in different markets. This study examines the impacts of four perceived values of mobile advertising on young Australian and Chinese consumers’ acceptance of mobile advertising. The findings suggest that perceived functional value have the most positive effect on mobile advertising acceptance, followed by credibility and interactivity value. Further analyses reveal that culture moderates the relationships between perceived values and advertising acceptance.     

Local Retail Segmentation Using the CETSCALE

Abstract

The CETSCALE was used to segment a local retail luxury sedan market into pro-import and anti-import groups. Four versions of a newspaper advertisement for both Cadillac and Lexus luxury sedans were tested across these two segments. Non-comparative, weaker indirect comparative, stronger indirect comparative, and direct comparative advertising headlines were used in a between-subjects design. An existing automobile dealership selling both Cadillac and Lexus brands was used as the test sponsor. Results unexpectedly indicate that the pro-import segment favors the hard-hitting direct comparison format significantly less than the anti-import segment, finding it less believable, likable, convincing, and professional, plus more boring.     

Divita,S. F. ed. Advertising and the Public Interest. America Marketing Association, 1974

Abstract

Advocacy advertising has become an often-used means for corporations to express their viewpoints on a variety of controversial issues. Recent events make it unclear whether advocacy advertising may be viewed as political (editorial) speech and, therefore, outside the regulatory controls of the Federal Trade Commission. This article discusses the current state of advocacy advertising by reviewing the criteria proposed (and/or used) by the courts, regulatory agencies, and advertising/marketing scholars in determining the regulatory boundaries of this form of advertising. In addition, the article proposes additional criteria that may be helpful in making such a determination.     

Specialisation of retail streets as a result of an evolutionary process

ABSTRACT

This article analyses the historical formation of the specialised retail street Santa Ifigênia (São Paulo, Brazil), and links it with concepts based on an evolutionary framework. Testing of the theory is based on historical data of firms from 1857 to 2010. The research has found that the current specialisation in the electro-electronic sector (from the 1940s onwards) is the third one that has taken place in the street, replacing the previous fashion sector (between the 1910s and the 1940s), which in turn outcompeted the original specialisation of the food sector (from the 1870s to the 1910s). It also highlights the historical and contingent events that changed the trajectories of the retail evolution of the street.     

Fundamentals of Copy and Layout. Book,Albert C. and C. Dennis Schick. Chicago: Crain Books, 1984. $14.95

Abstract

The Federal Communications Commission relaxed commercial television licensee obligations regarding deceptive advertising in 1985. Local broadcasters may now decide which clearance policies to use to determine if advertisements are deceptive. A national mail survey of commercial television station sales managers was conducted to determine whether advertising clearance policies vary by station profitability or organization size. The proposition that clearance policies may be used to make a station's airtime more attractive to viewers was also given a preliminary test. Results suggest that clearance policies are affected by profitability level and organization size. The implications of study findings are discussed.     

Bunce,Richard. Television in the Corporate Interest. New York: Praeger, 1976

Abstract

Conventional wisdom suggests that advertisers should approach the use of negative advertising with a great deal of caution. Perhaps because of its success in the political arena, negative advertising has recently been featured more prominently in the marketing of goods and services. Such a tactic is risky given that so little research on the subject is currently available. Prior to using negative advertising (if this genre of advertising should be used at all) in the marketing of non-political goods and services, a better understanding of the factors influencing its effectiveness must be achieved. This paper examines the literature, models, and theory applicable to the study of negative advertising. Thirteen research propositions are suggested.     

Slotting Allowances in China: Perspectives of a Large Manufacturer Versus a Large Retailer in the China Grocery Market

ABSTRACT

Slotting allowances and contractual marketing agreements pervade the retail environment in the United States. They represent a profit center for large retailers who exercise market power and represent a cost center for large manufacturers. Many manufacturers have alleged that they are “held captive” to procure prime retail space. Despite the influx of retailers and manufacturers based in the United States, the deployment of slotting allowances in China is less prevalent but does pervade the grocery sector. The purpose of this study is therefore to explore the attitudes of large Western manufacturers and retailers toward the issue of slotting allowances in the China grocery market through a qualitative study. In-depth interviews were conducted with key decision-makers from Coca-Cola (manufacturer) and Carrefour (retail hypermarket) to critically explore their attitudes toward slotting allowances. The interviews reveal principal differences grounded in cultural norms.     

The Effect of Cultural Distance on International Marketing Strategy: A Comparison of Cultural Distance and Managerial Perception Measures

ABSTRACT

The purpose of this article is to examine whether service convenience increases customer satisfaction that fosters customer loyalty in Indian commercial banks. A cross-sectional study of 352 retail banking customers through questionnaires was conducted. The population of the study is retail urban customers of banks in Rajasthan. Responses are analyzed using structural equation modeling. Dimensions of service convenience are decision convenience, access convenience, transaction convenience, benefit convenience, and postbenefit convenience. Decision convenience was found to influence customer satisfaction more than the other dimensions of service convenience. Customer satisfaction furthers customer loyalty. The article emphasizes the significance of SERVCON on customer satisfaction for the Indian banking sector. The direct impact of SERVCON on customer loyalty is also studied.     

New logistics technologies in improving customer value in retailing service

Today's business success to a great extent depends on logistics and supply chain performance. The role of logistics has never been as critical as it is today. This paper identifies a series of market trends and technological advances which are likely to affect Croatian retail logistics over the next 10–15 years. The results of the study conducted on the sample of Croatian retailing managers reveal that Croatian retailers have not yet recognized the importance of new logistics technology and that they do not use them sufficiently. Although retail sector is facing significant pressures to offer high level of service, knowledge and skills of their employees and to reduce cost as well, Croatian retailers do not see the opportunity of Internet based technologies to improve the knowledge of their employees as the most important source of the company. They use some Internet technologies mostly in advertising, the process of ordering and all transactions with suppliers, and the communication with other business entities.     

Comparing advertising effectiveness in South-American and North-American contexts: testing Hofstede's and Inglehart's cultural dimensions in the higher education sector

ABSTRACT

This research compares the effectiveness of advertising and relational marketing in two countries characterized by varying levels of both Hofstede's and Inglehart's cultural dimensions – Peru (high-power distance, high collectivism, survival and traditional values) and Canada (low-power distance, high individualism, self-expression and secular-rational values). Survey data from a high credence service sector (higher education) in both countries is used for the analysis. The results indicate that advertising and relational marketing have direct effects on choice in Peru, but do not have significant direct effects on choice in Canada. Advertising does, however, affect positively perceptual outcome measures (perceived marketing effectiveness) in Canada. Additionally, we find that advertising and relational marketing have an indirect impact on choice and perceived marketing effectiveness through the mediation of perceived informativeness and influencers in both countries. These results point to the need to account for mechanisms and mediating variables when building theoretical frameworks in cross-country studies.     

The Impacts of Retail Promotions on the Demand for Orange Juice: A Study of a Retail Chain

This study examined the impacts of retail promotions on the demand for five brands of orange juices for a retail chain (referred to as Retailer X) and its competitors using the Rotterdam model. Results show that the combination of feature ads and displays had the largest impacts on retail revenue among the four promotional tactics considered, whereas temporary price reductions had no advertising impacts on retail revenue. Results also show that when Retailer X promotes an orange juice (OJ) brand using any of the tactics, a larger portion of the increased demand for the promoted brand comes from reduced demand for other brands of OJ in the same store or chain.A smaller portion comes from the decreased demand in Retailer X's competing stores in the same trading area.     

The Impacts of Consumer Personality Traits on Online Video Ads Sharing Intention

Abstract

Despite the increasing importance of advertisement sharing, research on the characteristics of people sharing advertisements with others is limited. This study examines the impacts of personality traits on online video advertising sharing intention (OVASI). The results show that extraversion, neuroticism, and openness to experience among big-five personality traits have positive impacts on OVASI. Particularly, the effect of extraversion on OVASI was positive and the largest among personality traits. Implications of the findings, as well as suggestions for further research, are discussed.     

RFID Applications for Integrating and Informationalizing the Supply Chain of Foodservice Operators

Abstract

By enabling easier and real-time information sharing among supply chain partners, Internet applications foster and support new forms of collaborative supply chain management (SCM) practices within the foodservice sector. Advances in Radio Frequency Identification (RFID) technologies extend such collaborative SCM practices by increasingly integrating and synchronizing demand and supply chains. The objective of this paper is to investigate and analyze how RFID technologies can seamlessly tie customer interactions with the food supply chain and revolutionize the accuracy, efficiency, personalization-interaction, and security of foodservice marketing, production, and distribution simultaneously. To achieve this, the paper discusses the RFID implementation issues, practices, and benefits within the foodservice sector. The food industry's perspectives on the adoption and benefits of RFID developments are reported by discussing the results of a reality-check study conducted in the Greek foodservice sector.     

An Exploratory Study of the Impact of Non-Commodity-Specific Agricultural Promotion Campaigns on Consumer Purchasing Patterns

Abstract

The purpose of this study was to explore the possible impact of the “California Grown” campaign on consumer purchasing patterns. This advertising and public relations program was designed to encourage residents of the State to purchase more agricultural products grown in California.

The analysis reviewed the results of various market research studies conducted before, during, and after the Campaign and evaluated the extent to which the Campaign may have resulted in increased purchasing of agricultural products grown in California. The findings suggest that the advertising and public relations efforts had favorable/positive impacts on consumer attitudes, preferences for, purchase intent, and purchase action among those who were aware of the Campaign.     

Price Transmission and Threshold Behavior in the African Catfish Supply Chain in Uganda

Abstract

The issue of price linkage in the catfish supply chain in Uganda is important because catfish has become an important traded species with exports to regional markets rising even faster than production, yet limited research has been undertaken to understand the linkages and the non-linearity in the price transmission mechanism. This paper explores the issue using monthly price data from January 2006 to August 2013, and applies threshold autoregressive approaches to test for the existence of a long-run relationship and price asymmetry. The results show that prices in the catfish value chain are tied together by a long-run relationship. It is also revealed that ex-vessel and wholesale price adjustments to retail price changes are symmetric while ex-vessel price adjustments to wholesale price changes are shown to be asymmetric. The direction of causal relationships was observed from the retail to the wholesale and ex-vessel markets, indicating that retailers are the price leaders in the Uganda catfish supply chain.     

Intermediate Supermarkets in China

Abstract

Intermediate supermarket formats share characteristics of traditional food stores and of the modern supermarket. Because they represent steps on the evolutionary path towards the “complete” supermarket they offer an alternative to the dominant food retail modernization route involving the transplantation of the supermarket model.

The paper reports the findings of a study of these intermediate formats in Shanghai. We discuss the origins, structure and operation of these stores and evaluate their contribution to the food retail modernization process. Surprisingly, few of the operators of these stores were traditional food retailers. Most were state-owned companies and private entrepreneurs from outside the retail sector.

Lack of managerial and financial resources and inexperience led many to open these formats rather than the “complete” supermarket. The weakness of this subsector means that the main vehicle for food retail modernization in Shanghai will continue to be the supermarket chains. But because of limitations on the chain's expansion, they may enter into franchising arrangements with the best among these intermediate supermarkets. Finally, it is suggested that intermediate formats are likely to play a more important role in secondary cities, in towns and in rural areas in China.