Retail Perspective Research Articles

EOQ-based pricing and customer credit decisions under general supplier payments

This study investigates an inventory model interfaced with finance, marketing, and operations in a supplier-retailer-customer chain by incorporating some relevant and essential facts. The demand pattern is a multiplicative form of the retailer's selling price and credit period. The retailer receives an upstream advance-cash-credit payment plan from the supplier while offering a downstream cash-credit payment to customers. From the retailer's perspective, offering a longer credit period to customers results in more sales volume but a higher default risk than a shorter one. The retailer's objective is to determine the optimal credit period, selling price, and replenishment time simultaneously to maximize total profit. We develop the model to fit in a general framework that includes various payment types (such as advance, cash, credit, advance-cash, advance-credit, and cash-credit) and numerous previous models as special cases. We derive explicit closed-form solutions to optimal selling price, credit period, and cycle time for five possible cases. We then establish several theoretical results and identify which case is optimal under certain conditions. The purpose of this study is to explore pricing, crediting, and lot-sizing strategies under various payment types – advance, cash, and credit. Finally, we use the analysis numerically to investigate the impact of different payment schemes on the retailer profitability.

Strategically releasing control: Navigating the complexities of enabling category captains

Many retailers seek growth by strategically enabling a category captain to manage a category on their behalf. Past research assesses the efficacy of category captaincy from a retailer perspective, with results showing effective categorycaptain arrangements depend on the respective abilities of actors to effectively operate in such a network structure. Less is known about what and how manufacturers become successful captains or how challenger manufacturers unseat an incumbent captain. With this research, we contribute to the growing but still small literature on category captaincy in two main ways. First, we re-orient the focus from the retailer to the manufacturer (both captain and non-captains) to uncover the enabling strategies and underlying capabilities captains and non-captains require when operating in category captaincy networks. Second, we contextualize the captaincy lifecycle in terms of three stages; consideration, captaincy, and renewal. Drawing on interviews with retailers, category captains, and non-captains from six sectors we develop propositions whereby capabilities are contingent on actor goals across the captaincy lifecycle. In so doing, we extend existing research by identifying the capabilities necessary for different actors to gain benefits from category captaincy arrangements.

Retailer perspectives on sugar-sweetened beverage taxes in the California Bay Area.

The sugar-sweetened beverage (SSB) industry has claimed that food and beverage retailers are opposed to SSB taxes. In 2018 and 2019, we formally evaluated retailers’ perceptions of SSB taxes using semi-structured interviews (including open- and closed-ended questions) with 103 randomly selected retailers (50 corner and liquor stores; 28 chain convenience, drug, and mass-merchandise stores; 18 chain supermarkets and discount supermarkets; and 7 independent supermarkets) across 3 cities with SSB taxes (Berkeley, Oakland, and San Francisco); interviews occurred in 2018 and 2019 (approximately 3 years, 1 year and 6 months post tax-implementation, respectively). A majority of both small and large retailers reported the tax had only a minimal effect on their business (70%). About half of retailers believed that other cities should adopt SSB taxes (53%), and were supportive of a statewide SSB tax (53%), noting it would level the playing field and better support health in their communities. Retailers’ responses did not differ based on neighborhood income, and only 2 responses differed significantly between large and small retailers. Only 2 of 103 retailers reported raising the price of a non-beverage product in response to the tax, specifically raising the price of snack foods of low nutritional quality and alcoholic beverages. A majority of retailers in 3 California cities with SSB taxes have no concerns regarding the tax, endorse the health goals of SSB taxes and support statewide expansion of SSB tax policies.

Shared power and fairness in trust-based supply chain relationships in an urban local food system

PurposeThe purpose of this paper is to investigate supply chain relationships in an urban local fresh food system from a retailer perspective to examine the types of relationships and the factors underpinning the development of such relationships.Design/methodology/approachUsing the multiple case study method, interview data from twelve urban local fresh food retailers in Sydney were analysed using the thematic analysis.FindingsThis study finds that balanced power relationships in the supply chain allow reasonable power to sit with growers in product price determination irrespective of the dependency of small-scale growers on relatively large local retailers. Trust-based relationships are developed over multiple transactions, where shared values across the supply chain and consistently low opportunistic behaviour in reward sharing are demonstrated to be the crucial factors underpinning close relationships. This study also found evidence of horizontal supply chain linkages among retailers in a competitive environment.Practical implicationsFindings of this study have implications for policymakers in designing urban fresh food systems and for practitioners in large urban retailers including supermarkets that attempt to integrate local food into their product portfolio.Originality/valueThis study extends the local food system literature dominated by rural studies to include new knowledge about the dynamics of collaborations in contemporary urban local fresh food supply chains. It provides the first empirical evidence of lateral inventory transshipment between retailers in a competitive environment confirming previous simulation studies.

Understanding the Market Landscape and Consumption Behaviour: A Case Study

The main purpose of this study is to get an insight regarding buying and eating habit of Pulse candy by consumers as well as retailers perspective of selling the Pulse candy. In addition, this study aimed to examine the competition and communication insights of minimum 5-6 candies; and to know about the overall comparison of Pulse with other candies. A survey questionnaire was developed and total 300 questionnaires (50 consumer's perspective and 250 retailer's perspective) were randomly distributed to consumer and retailer participants through personal visit. Response rate was 100%. The result shows that Pulse candy holds a good position in the market and is in high demand due to its unique taste. Taste is the top priority of the consumers. It is also discovered that consumers show different behaviour and perception on the same product/item. Large portion of candy consumers are between 19-25 years due to their smoking pattern.

Perspective of consumer and retailer towards campco chocolates

Perspective of consumer and retailer towards campco chocolates

Power Retailer Air-Conditioning Load Aggregation Operation Control Method and Demand Response

Thermostatically controlled loads (TCLs) have become a major tool for the demand response (DR) program when air conditioners cause peak loads in a day during the winter or summer. To solve the problem of a direct load control with TCL usually affecting user comfort and hardly considering responsiveness, a power retailer air-conditioning load aggregation operation control and demand response method was proposed in this research. From the perspective of a power retailer, a compensation mechanism for TCL was constructed, which was composed of a basic incentive program and an additional incentive program. The basic incentive program aimed to encourage users with a low response degree to increase the response capacity in order to participate in DR. An auxiliary service market control strategy based on a new compensation mechanism of the electricity retailer was detailed, which fully considered the enthusiasm of the user in mobilizing the response and reducing the load reduction fluctuation when using the state-queuing (SQ) model. Case studies were provided to verify the effectiveness of the proposed method. Compared with other compensation schemes, the simulation results showed that the compensation mechanism provided in this research was more reasonable, and it could smooth the load and reduce fluctuations. The compensation distribution among the user groups could effectively control the uniform distribution in the user groups in the temperature range, and it could mobilize users at different temperatures to participate in DR.

Influencing Factors of Channel Collaboration in Multi-channel Supply Chain: A Contextual Ambidexterity-Based Analysis from the Perspective of Traditional Retailer

Influencing Factors of Channel Collaboration in Multi-channel Supply Chain: A Contextual Ambidexterity-Based Analysis from the Perspective of Traditional Retailer

How to optimize retailers’ recovery strategies for electronic waste

Abstract Electronic waste leads to a waste of resources and is a source of environmental pollution. The effective recovery of electronic waste is an urgent sustainability challenge. From the perspective of retailers, this paper constructs a retail sales strategy model under three strategies: a cash incentive, price preference incentive, and price discount incentive. By comparing the relationships among retailer benefits, incentive utility and incentive capital investment under these three incentive strategies, the model determines the optimal incentive strategies. This research shows: (1) When the incentive utility value is below the cross point, the price discount incentive strategy could earn a retailer the maximum profit. When the incentive utility value increases up to the cross point, the cash incentive strategy could earn a retailer the maximum profit; (2) The price discount incentive strategy is the optimal choice for retailers, and retailers can obtain the largest net profit at the same incentive cost; (3) The cash incentive strategy is less attractive because it creates biggest variability in net profit.

Rural independent and corporate Supplemental Nutrition Assistance Program (SNAP)-authorized store owners' and managers' perceived feasibility to implement marketing-mix and choice-architecture strategies to encourage healthy consumer purchases.

Supplemental Nutrition Assistance Program (SNAP) participants could benefit from exposure to marketing-mix and choice-architecture (MMCA) strategies that encourage healthy consumer purchases. However, the perceived feasibility of independent and corporate SNAP-authorized store owners and managers (e.g., retailers) to implement healthy MMCA strategies is understudied. The purpose of this study was to inform a healthy food retail program that meets both public health and business expectations by prioritizing retailer perspectives. A mixed methods approach was used. Retailers completed a card sorting exercise to determine perceived feasibility to implement MMCA strategies place, profile, portion, pricing, promotion, priming, prompting, and proximity. This process was audio-recorded. Chi-square was used to identify potential differences in perceived feasibility to implement healthy MMCA strategies between independent and corporate SNAP-authorized retailers. Qualitative data were coded among a panel to construct themes. Themes were organized by barriers and facilitators and coded for strategy acceptability, appropriateness, and feasibility. SNAP-authorized retailers' (n = 29) considered prompting (e.g., labeling; 83%) and proximity (e.g., location; 90%) strategies to encourage healthy consumer purchases highly feasible. Few differences were detected between independent and corporate retailers' perceived feasibility to implement healthy MMCA strategies. The largest barriers to implementing healthy MMCA strategies were related to strategy appropriateness. Priorities for healthy food retail initiatives included prompting and proximity changes that highlight products aligned with the DGA, without altering products available to consumers that are misaligned with the DGA. Future work is required to understand how other healthy MMCA strategies may be adapted to enhance their appropriateness for these settings.

Urban distribution centres in historical cities from the perspective of residents, retailers and carriers

The heavy flow of vehicles in historical cities leads to negative impacts for city logistics and for the preservation of its heritage. The use of an urban distribution centre (UDC) is a solution to minimise these impacts. This paper compares the operational, economic, social, cultural, and environmental aspects that influence the implementation of a UDC in a Brazilian historical city, considering the viewpoints of the agents: residents, retailers and carriers. Having a more complete picture of these aspects by the agents, this paper also sheds light on corporate social responsibility (CSR) in urban freight transport (UFT). A survey was developed with each agent. Factor analysis is used to find the factors for implementation of a UDC and the Structural Equivalence by Orthogonal Procrustes Rotation is used to compare the factors. The findings reveal different points of view for these agents. Residents attached greater importance to factors related to habitability and sustainability in the city. Retailers focused on economic environmental issues, while carriers emphasised operational and environmental aspects.

Sustainable ordering policies for non-instantaneous deteriorating items under carbon emission and multi-trade-credit-policies

Abstract In the current business market, organizations have to work mutually to control the rising level of carbon emission parallel with long-lasting financial benefits. Green inventory management reduces the environmental impacts of a business without lacking its profit. This study demonstrates a fuzzy green inventory model having non-instantaneous deteriorating products which help the organizations for maximization of total annual profit under different conditions of trade-credit-policies along with minimizing carbon for a cleaner environment. The paper discusses all the potential cases, which may occur in green inventory models with carbon emission cost under different allowable delay-in-payments. Here, the demand rate is taken as dependent on selling price. In addition, shortages are allowable and are completely backlogged. The whole profit is calculated from the retailer's perspective. In this model, demand, as well as deterioration rates, are considered as a triangular fuzzy number. The objective has to evaluate sustainable optimal ordering strategies for retailers, which maximize the entire annual profit and minimize the carbon emission. The various possible scenarios are discussed in detail to get the relevant profit of a retailer. The validity of the established model is proved by presenting a numerical experiment. Sensitivity analysis of this study is also exemplified to verify its factual practice.

Investigating business outcomes of healthy food retail strategies: A systematic scoping review.

Large changes to food retail settings are required to improve population diet. However, limited research has comprehensively considered the business implications of healthy food retail strategies for food retailers. We performed a systematic scoping review to identify types of business outcomes that have been reported in healthy food retail strategy evaluations. Peer-reviewed and grey literature were searched. We identified qualitative or quantitative real-world food or beverage retail strategies designed to improve the healthiness of the consumer nutrition environment (eg, changes to the "marketing mix" of product, price, promotion, and/or placement). Eligible studies reported store- or chain-level outcomes for measures of commercial viability, retailer perspectives, customer perspectives, and/or community outcomes. 11 682 titles and abstracts were screened with 107 studies included for review from 15 countries. Overall item sales, revenue, store patronage, and customer level of satisfaction with strategy were the most frequently examined outcomes. There was a large heterogeneity in outcome measures reported and in favourability for retailers of outcomes across studies. We recommend more consistent reporting of business outcomes and increased development and use of validated and reliable measurement tools. This may help generate more robust research evidence to aid retailers and policymakers to select feasible and sustainable healthy food retail strategies to benefit population health within and across countries.

Práticas de trade marketing como vantagem competitiva para produtos duráveis: Um estudo de caso em concessionárias de veículos

This article proposes to discuss the trade marketing practices from the point of view of the resource theory from the perspective of the retailer in the segment of durable consumer goods, with the automotive sector being the object of analysis. In order to do so, it used as reference the model of the mix trade marketing proposed by Alvarez (2008), being composed by the variables: (1) sales and channels, (2) price, (3) advertising, promotion and merchandising, product mix, (5) services and logistics, (6) results and profitability. This is a descriptive research with a qualitative approach to the data collected. The multi-case method was used, these being three car dealerships. As results it was possible to identify that the practices of trade marketing contribute to the generation of competitive advantage by the internal synergy able to combine capacities and competences and to generate specific resources, as people and physical attribute of the fine.

Potential benefits of optimal intra-day electricity hedging for the environment: The perspective of electricity retailers

Our article provides a better understanding of risk management strategies for all energy market stakeholders. A good knowledge of optimal risk hedging strategies is not only important for energy companies but also for regulators and policy makers in a context of climate emergency. Indeed, the electricity sector is key to achieve energy and ecological transition. Electricity companies should be on frontline of climate change struggle. Taking the perspective of electricity retailers, we analyze a range of portfolios made of forward contracts and/or power plants for specific hourly clusters based on electricity market data from the integrated German-Austrian spot market. We prove that intra-day hedging with forward contracts is sub-optimal compared to financial options and physical assets. By demonstrating the contribution of intra-day hedging with options and physical assets, we highlight the specificities of electricity markets as hourly markets with strong volatility during peak hours. By simulating optimal hedging strategies, our article proposes a range of new portfolios for electricity retailers to manage their risks and reduce their sourcing costs. A lower hedging cost enables to allocate more resources to digitalization and energy efficiency services to take into account customers’ expectations for more climate-friendly retailers. This is a virtuous circle. Retailers provide high value-added energy efficiency services so that consumers consume less. The latter contributes to reach electricity reduction targets to fight climate warming.

Recreation centre managers’ perceptions of pricing interventions to promote healthy eating

Retailers have the capacity to improve the food and beverage environment by making healthier options more affordable and attractive for their consumers. The perspectives of retailers on feasible and acceptable pricing strategies are not known. The aim of this study was to understand retailers' perceptions of factors that are relevant to feasible and acceptable health-promoting food and beverage pricing interventions. A convenience sample of 11 aquatic and recreation centre managers in Victoria, Australia was recruited to participate in semi-structured interviews. We took a pragmatic approach with the aim of understanding retailers' perceptions of factors that affect the feasibility and acceptability of pricing interventions within their facilities. Thematic analysis was used to synthesize and interpret retailers' perceptions of pricing interventions. Key themes identified were: structural and organizational characteristics (the internal and external characteristics of aquatic and recreation centres), characteristics of feasible pricing changes (type, magnitude and products targeted by pricing strategies) and business outcomes (profits and customer feedback). Results suggest that pricing interventions to promote healthy food and beverage choices can be feasible and acceptable to retailers, though contextual considerations are likely to be important. Future studies should use these findings to design interventions most likely to be acceptable to retailers, work with retailers to implement health-promoting food and beverage pricing interventions, evaluate the impact on business outcomes including customer perspectives and profitability, and test transferability to other retail settings.

O5 Utilizing Data-Driven Strategies to Inform a SNAP-Ed Healthy Food Retail Initiative

Objective Identify evidence-based strategies for SNAP-Ed to target SNAP-authorized retailers to improve consumer purchases of healthy foods. Use of Theory or Research Mixed-methods study to explore feasibility of implementing behavioral economic strategies. The Market Basket Assessment Tool (MBAT) was used to measure frequency of low-cost nutritious foods. Target Audience Virginia SNAP-authorized retailers in low-income census tracts or with high SNAP redemption. Program Description Shop Smart, Eat Smart (SSES) is a 2-phase program; first building demand of existing healthy foods within SNAP-authorized retailers that score 15/40 or more on the MBAT, then supporting optional supply changes to increase healthy inventory. In phase 1, retailers choose from a “menu” of strategies based on research findings. Strategies range from signage to food demonstrations. In phase 2, technical assistance will be offered to facilitate inventory changes. Evaluation Methods The MBAT is used for baseline and follow-up food audits. In addition to measuring inventory changes, adoption rate, and potential reach, each strategy is complemented by a set of evaluation questions gathering retailer perspectives of impacts on consumer purchasing. Results The logo included the most popular, low-cost items featured in participating stores within the MBAT study; including bananas, canned green beans, eggs, canned tuna, and peanut butter. In-store marketing and consumer engagement materials found to be the most feasible by retailers were created; including shelf-talkers, posters, grocery store tours and scavenger hunts, food demonstration resources, floor arrows, and yard signs. In FY2018, seven stores implemented strategies within Virginia with the potential reach of 95,726 individuals and an average MBAT score of 33.6. Conclusions This study explored the feasibility of implementing strategies to promote healthier purchases. While SSES has the potential to reach large numbers of consumers and existing partnerships are promising, ongoing data collection is needed to determine impact. Funding SNAP-Ed.

A case study on borders in retail spaces

PurposeThe existence of retail spaces lies far back in history. However, retail design as an academic field of work is relatively recent and available for development. The common points and differences between commercial spaces and retail spaces, as well as the relationship between private and public spaces, require academic attention from a retail perspective. The purpose of this paper is to contribute to the academic knowledge on retail design by interpreting retail spaces according to their relationship with their surroundings and their way of defining borders.Design/methodology/approachThe focal point of the paper lies on a case study based on built examples of retail spaces in Turkey. An actual perspective, along with the historical background of retail design, provides the theoretical framework of the study, as the term “border” is being interpreted according to encountered restrictions and intentions throughout the retail design process.FindingsThe case study conducted in the scope of this paper has shown that borders are an important component in retail design and they are affected by various factors like the limitations of the surroundings and atmospheric tools such as colours, lighting, sound or scent.Originality/valueAlthough there are existing studies on retail design from various perspectives, the interpretation of retail spaces in relationship with their borders is missing in academic literature. This paper provides a definition of borders in retail design including the elements that describe them and the knowledge of borders according to different corporate tendencies.

Research on Distributed Energy Storage Operation Mode and Technical Economy under the Background of Energy Internet

Energy storage subverts the traditional concept of source-network-load, breaks the inherent property of power supply and consumption at the same time. Distributed energy storage plays an important role in the energy internet. The paper introduces the technical characteristics of distributed energy storage, builds typical application scenes under the energy internet environment. Given this background, two typical operation modes of customer-side distributed energy storage are proposed based on different operational objectives and constraints. After studying the basic strategy of the operating model and evaluating the distributed energy storage economy from the perspective of users and electricity retailers, it can be concluded that distributed energy storage is able to effectively improve system flexibility and energy utilization. Its economy is determined by various factors such as technical route, configuration capacity, and electricity price. A reasonable operation mode can promote the sustainable development of distributed energy storage.

Customer engagement with websites: a transactional retail perspective

PurposeThis paper aims to focus on customer engagement (CE) in the underexplored context of transactional retailing websites, providing insight into the drivers, manifestations and dimensionality of the construct. The website is viewed as a collection of environmental stimuli, and focus is placed on identifying the website environmental cues that promote CE.Design/methodology/approachThis focussed study follows an exploratory research design. A total of 22 semi-structured interviews were conducted with one segment group: over-55-year-old female online shoppers in the most commonly purchased product category online, clothing. The stimulus–organism–response model forms the theoretical framework.FindingsThe unique findings identify that product-related environmental cues drive CE on a website, suggesting that CE occurs at the level of the product, as opposed to the website.Research limitations/implicationsCE with websites exists beyond the customer–brand dyad, with the website forming the third node in a triadic relationship between customer, brand (at level of the product) and website (at level of the product-related cues).Practical implicationsThis study reveals the relationship between website environmental cues and the manifestation of CE, providing managers with insight on how best to drive CE. Confirmation is provided that the website represents a vital touchpoint in the engagement journey of a retail customer.Originality/valueWebsites as a focal object for CE are markedly under-researched. This study empirically supports the relevance of considering CE in this context and reveals the influence online environments have on CE.