Empirical models of manufacturer-retailer interaction: A review and agenda for future research |
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| Authors: | Kusum L Ailawadi Eric T Bradlow Michaela Draganska Vincent Nijs Robert P Rooderkerk K Sudhir Kenneth C Wilbur Jie Zhang |
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| Institution: | (1) Tuck School of Business, Dartmouth College, 100 Tuck Hall, Hanover, NH 03755, USA;(2) University of Pennsylvania, Philadelphia, PA, USA;(3) Graduate School of Business, Stanford University, Stanford, CA, USA;(4) Kellogg School of Management, Northwestern University, Evanston, IL, USA;(5) Tilburg University, Tilburg, The Netherlands;(6) School of Management, Yale University, New Haven, CT, USA;(7) Fuqua School of Business, Duke University, Durham, NC, USA;(8) University of Maryland, College Park, MD, USA |
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| Abstract: | The nature of the interaction between manufacturers and retailers has received a great deal of empirical attention in the
last 15 years. One major line of empirical research examines the balance of power between them and ranges from reduced form
models quantifying aggregate profit and other related trends for manufacturers and retailers to structural models that test
alternative forms of manufacturer-retailer pricing interaction. A second line of research addresses the sources of leverage
for each party, e.g., trade promotions and their pass-through, customer information from loyalty programs, manufacturer advertising,
product assortment in general, and private label assortment in particular. The purpose of this article is to synthesize what
has been learnt about the nature of the interaction between manufacturers and retailers and the effectiveness of each party’s
sources of leverage and to highlight gaps in our knowledge that future research should attempt to fill. |
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