Considering Technological Impacts When Selecting Food Suppliers: Comparing Retailers' Buying Behavior in the United States and Europe

Purpose: The research investigates the impact of emergent technologies, specifically supply-chain technology and food-production technology (i.e., genetically modified organisms [GMO]), on global food retailers' supplier decisions.

Methodology/approach: Qualitative research is conducted to examine technology-related vendor selection criteria of food retailers in 5 European countries comparing to those in the US.

Findings: Our findings show that global food retailers view supply-chain technology as a competitive advantage and is integrated as an important selection criteria; however, selection criteria differ for food-production technology between the United States and the European countries. European food retailers explicitly oppose food-production technology (GMO), while U.S. food retailers implicitly accept food-production technology. Emerging from this opposing view, global food retailers establish similar criteria for organic food (non-GMO) supplier selection: reliability, distance, consistent quality, and relationships with suppliers.

Research implications: Applying the supplier choice criteria framework (Lehmann and O'Shaughnessy 1982 Lehmann, D. R. and 'Shaughnessy, J. O. 1982. Decision criteria used in buying different categories of products. Journal of Purchasing and Materials Management, 18: 9–14.  [Google Scholar]) to further analyze organic food suppliers, we find that reliability (adaptive criterion), distance (integrative criterion), consistent quality (performance criterion), and relationships with suppliers (economic criterion) are essential, but price is not.

Practical implications: This study suggests that to sustain competitiveness in the global food market, food suppliers not only need to ensure technological compatibility in supply-chain, but also adapt to the local food-production restriction (GMO) and organic food selection criteria preferences.

Originality/value/contribution: Supply-chain technology is strategically important and is adopted by global food retailers for competitive advantage; yet, there are dramatic differences regarding the acceptance of food production technology. This research contributes to the better understanding of how technologies exert significant and strategic weight in the food supplier selection process.     

Towards a conceptual model of country market selection: Selection processes of retailers and C&C wholesalers

Abstract

International market selection is discussed in general, particularly in respect of decisions on evaluation stages, selection criteria and evaluation methods. The present analysis focuses on the configuration of country selection models, which has received little attention in international retailing research. In order to illustrate the special features of market selection in retailing, we have used an innovative approach. Following a review of general theoretical perspectives, a case study of the Metro Group addresses the process used, inter-country selection and country-specific selection, and also shows the role of corporate principles and firms' situational factors. Based on existing literature and the case study information, we propose a strategic approach in modelling country selection processes. Three steps in the construction of a selection model are discussed and related to corporate principles and situational factors of a retail firm. The analysis is a further step towards understanding the processes of retailing internationalization.     

Application of an environmental psychology model to in-store buying behaviour

Although the influence of the environment on behaviour has long been acknowledged by many environmental psychologists, not many studies have been done in a retailing context, and so far no study can provide a framework to determine how environmental cues might impact on store patronage. The main objective of this study is to explore the relationship between environment and human behaviour in a retailing context by adopting the Mehrabian Russell Model (M-R Model) so as to test the predictability and applicability of the model through measurement of the information load, the emotional states induced and the approach-avoidance behaviour of shoppers in two types of CD stores in Hong Kong. The findings show that in-store environment stimuli (expressed in terms of information rate) are positively related to the level of pleasure experienced in the store. In turn, environment-induced emotional states in the store are positively related to in-store shopping behaviour. Therefore, shopping behaviour favourable to retailers can be induced through manipulation of the store's atmospheric elements. The findings show that the in-store environment is dynamic in nature and the model is not as simple as that predicted by Mehrabian and Russell in a one-way direction. In-store behaviour also has positive effects on the pleasure felt in the store and the in-store rating of environmental stimuli.     

Competition In Mediation Services: Modeling the Role of Expertise,Satisfaction, and Switching Costs

This article analyzes competition among mediation service providers that match clients and vendors in a horizontally differentiated market. This is an issue that is important for decision support of mediators in determining pricing and service strategies. We present a simulation model to simultaneously represent search as well as the behaviors of clients, vendors, and multiple competing mediators. Among our findings: intermediaries find it optimal to offer registration fee incentives and derive revenues from transaction fees from successful matches; as switching costs increase, incumbent utilities increase and entrant utilities decrease; expertise, modeled as the ability of mediators to assess vendor attributes accurately, is a powerful competitive weapon for entrants to erode the incumbent intermediary's first mover advantage. On the other hand, client satisfaction is an instrument for an incumbent intermediary to deter entrance by competitors.     

Testing market positioning themes: a perceptual mapping approach

The purpose of this article was to examine a research method designed for testing marketing communication themes. The theme testing approach, which was based on perceptual mapping procedures, focused on communication potency issues such as the degree to which the communication achieves marketing communication objectives, is compatible with the image of the source, is compatible with the target consumers' preferences and is differentiated from competitors' market positions. The results of convergent and discriminant validity tests suggested strong support for the theme testing method.     

Inhibition of Brand Integration amid Changing Agency Structures

The all‐important focus upon brands and brand success is underpinned – of necessity – by well‐designed and well‐executed integrated marketing communications (IMC). This qualitative paper explores perceptions of IMC in relation to branding within senior UK‐based advertising and public relations agencies in terms of current perceptions, implementation, coordination, evaluation, barriers, budgetary issues, decision‐making; and managerial implications for the future of IMC. The paper describes the findings from a series of depth interviews with senior executives from leading advertising and public relations agencies. While the findings do indicate the presence of ongoing barriers to the adoption and usage of integrated solutions, these barriers are as much an issue to do with clients as with the agencies themselves. Nonetheless, there seems to be an issue concerned with remodelling working practices to accommodate new and seamless ways of working creatively across all promotional mix elements. Thus, while the principles of integrated marketing communications are sound, the actual mechanisms for application still need further work –in terms of both application and measurement, and the need for in‐depth research. We also endorse and reiterate oft‐repeated calls for research with client organizations.     

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.     

Extrinsic Cues and Consumer Judgments of Food Product Introductions: The Case of Pangasius in Norway

In this article, the authors explore how the extrinsic cues corporate social responsibility, endorsement, and country of origin affect consumer evaluations of product quality, value, and expected product popularity for frozen Pangasius filets, a farmed fish product just recently introduced into the Norwegian market. The effects of these three variables are tested on purchase intentions. By means of a 2?×?2?×?2 factorial experiment in combination with survey data, the authors find that the three extrinsic cues under study had different effects on the evaluative variables. Furthermore, these variables all had positive and significant effects on purchase intentions. Hence, the general conclusion is that importers of new food products like Pangasius can benefit from focusing on extrinsic cues when the intrinsic cues are hard to evaluate or are unknown. Through the indirect effect on purchase intentions, extrinsic cues play an important role when consumers judge unfamiliar and new products.     

Did the Proposed Country-of-Origin Law Affect Product Choices? The Case of Salmon

The 2002 Farm Securit and Rural Investment Act mandated that country-of-origin labeling (COOL) be applied to specific food commodities. Using revealed preference data for 1998–2006, a nonlinear AIDS model is used to estimate the demand for uncooked frozen, uncooked fresh, and precooked salmon to assess the impact of the legislation on consumer demand patterns. Findings from a non parametric analysis suggest a possible rotation in the demand curve for fresh salmon that may be linked with the quality signal associated with COOL. However, our findings indicate that COOL had no significant impact on overall consumer demand for the three products. All three were found to be inelastic, with uncooked fresh salmon being slightly more price sensitive than uncooked frozen and precooked salmon. Given the expenditure elasticities, the fresh salmon segment of the industry appear to be more vibrant than the other salmon segments and would likely influence investment decisions in the salmon industry.     

Types of Word-of-Mouth Messages: Information Search and Credence-Based Services

Word-of-mouth communication (WOMC) has been recognized as a powerful marketing communication medium and a credible information-gathering tool. To date, the various types of WOM messages have not been adequately studied, especially in credence-based services (CBS). Using the individual interview technique, this study fills this gap by describing the three types of WOMC messages in CBS information-gathering. The results contribute to the ongoing development of WOMC theory and also advance management's understandings of the types of WOMC messages in the CBS information-gathering process.