Small retailer’s new product acceptance in emerging market: a grounded theory approach

Abstract

Purpose – The purpose of this paper is to propose a model of small retailers’ new product acceptance criteria using a grounded theory approach in an emerging market, India. Design/methodology/approach – Empirical research on retailers’ new product acceptance either takes survey design or modeling approach. This study uses grounded theory approach to systematically collect and analyze data to generate a model for the small retailers’ new product acceptance in an emerging market, India. In depth interviews with ten small retailers, five situated in small market town and five in a metro were conducted. Findings – Retail margin on offer is the first and foremost criteria considered while accepting a new product along with product and market-related factors. The small retailers spelt out the tradeoff decision on retail margins while accepting a new product. The tradeoff criteria that emerged during the analysis are trade and promotional support, sales potential of the product, salesperson relationship with the retailer, aspects of fairness in the relationship, corporate reputation, relevant product information, and availability of the product with other retail competitors. Practical implications – The study suggests that marketers have to maintain healthy relationship with the channel partners especially the retailers who are in direct contact with the final consumer. The findings of the study suggest that marketers specifically need to take into consideration aspects of fairness and encourage salespersons to build and foster relationships with small retailers. Originality/value – This study is one of the few study which uses grounded theory approach to propose a retailer’s new product acceptance model.