Retail Buyers Research Articles

Private label partnerships with retailers: a risk or opportunity for producers?

PurposeThis study identifies benefits and challenges of PL partnerships, and recommendations to improve the PL partnership process.Design/methodology/approachQualitative data was collected via semi-structured interviews (n = 8) with Irish PL retail buyers (n = 4) and producers (n = 4). Data was coded and thematically analysed.FindingsThree key themes were identified. Theme 1 provides an overview of the benefits of PL partnerships for producers (e.g. volume driven orders, increased efficiencies) and for retailers (e.g. unique products, meeting consumer demand). Theme 2 presents challenges of PL partnerships specific to small and large producers (e.g. small producers may need significant investment to upgrade facilities, while larger producers may require significant volume to justify adaptation of production lines). Challenges common to both (e.g. risks related to short-term contracts, concerns about brand identity) are also discussed. Theme 3 summarised recommendations for successful PL partnerships generally (e.g. setting clear expectations and goals, building rapport and trust), and recommendations specific to producers and buyers specifically (e.g. producers should diversify customers to reduce risk, and retailers should communicate needs and direction).Originality/valueThere is currently limited research on PL partnerships between producers and retailers. This study addresses this gap by identifying key aspects for producers to consider when entering PL partnerships and key aspects for retailers to be aware of to help improve the attractiveness and success of these partnerships.

International retail buying groups and consumer prices

The aim of the research described in this paper is to investigate the effect of international retail buying groups on consumer prices. The study focuses on EDEKA, the leading grocery retailer in Germany, and its membership in AgeCore, the largest European international retail buying group. The empirical analysis is based on an extensive EDEKA scanner dataset, including over 6 million observations of monthly consumer prices for 138,000 stock-keeping units (SKUs) across 20 food categories, over a six-year period. The analysis shows that EDEKA’s membership in AgeCore led to reduced prices for its customers. These findings are consistent with recent studies on the influence of retail buying groups on consumer prices and contribute to an increasing body of evidence that international retail buying groups reduce consumer prices. The paper shows that international buying groups are a force for the good, as they contribute to reduce consumer prices while simultaneously offering a cost-efficient mechanism for retailers to create scale to obtain competitive buying conditions.

Retail Buyer and Manufacturer Influence

Retailers often employ professionals known as retail buyers to determine the right quantities of products to order. However, in many economies and industries, a manufacturer may seek to unduly influence the buyer through various means. One such means is to offer the buyer kickbacks (incl. entertainment, travel, gifts) in return for a large order. Despite prominent examples of retailers taking initiatives against kickbacks, the practice persists in many economies and industries. To aid initiatives combating kickbacks, one needs to do the right diagnosis and identify the root cause. To this end, in this paper, we introduce the retail buyer as a distinct player in the retail channel and study the implications of the tug-of-war between the retailer and the manufacturer to influence the buyer. Interestingly, we find when kickbacks are feasible, the manufacturer need not always benefit, and the retailer need not always be the victim. We show a well-designed buyer compensation plan is key for the retailer to avoid kickbacks from distorting the buyer’s demand assessments. Moreover, when the reputational harm from kickbacks is not too high, the retailer may be the one tacitly facilitating kickbacks by undercompensating the buyer and influencing her demand assessments such that it can leverage kickbacks for shifting some of its buyer compensation cost to the manufacturer. This sharing of cost may allow for better channel coordination. Furthermore, this cost-shifting mechanism of kickbacks we have identified in this paper can explain their persistence. No retailer tolerates kickbacks when the reputational harm is high. This paper was accepted by Eric Anderson, marketing. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2021.01646 .

Trust, distrust, and open‐book accounting in three client‐vendor relationships

AbstractExtant management accounting research has conceptualized the interplay between trust, distrust, and open‐book accounting (OBA) as a relationship‐level phenomenon, largely ignoring that inter‐organizational relationships are often complex entities that comprise multiple arenas of exchange where (dis)trust and OBA can interact in different—and potentially contradictory—ways. To address this theoretical oversight, we draw on relational exchange theory to propose that (dis)trust largely forms within OBA domains where different forms of data are exchanged for different purposes. Trust and distrust may thereby coexist within a relationship. We also propose that (dis)trust spills over to influence the conditions for OBA in other domains. Consequently, trust and distrust not only take shape in cumulative processes within OBA domains but also diffuse between domains in a relationship. Empirical observations from a longitudinal case study of a retail buyer's attempts to introduce OBA in three vendor relationships lead us to suggest that competence‐trust spillover is determined largely by domain similarity, while goodwill‐trust spillover relies to a greater extent on staff mobility between OBA domains. Overall, the negative effects of distrust spillover on the implementation of OBA appear greater than the positive effects of trust spillover. Our study shows that, by analyzing the domain‐specific nature of trust and distrust, future research can increase our understanding of the relationship between data characteristics and (dis)trust, as well as explain how trust and distrust interact to determine conditions for data exchange between organizations.

Role of Justice Perception in Relationship Duration, Brand Equity, and Strategic Integration

ABSTRACT Purpose This study investigates the justice perception of buying group member retailers and examines whether it is an initiator of relationships and a constant driver of attitude through the lens of brand equity and relationship duration. Building upon the findings, this study offers practical implications for the managers of the buying group headquarters. Design/methodology/approach A questionnaire survey of 241 key informants of retailers participating in eight different retail buying groups in Japan was conducted. We conducted confirmatory factor analysis to verify measurements, and structural equation modeling to test the hypotheses. Findings Distributive justice perception directly affected relationship duration and procedural justice perception had an indirect effect on relationship duration via brand equity. We also found the significant moderating effect of strategic integration. For the group with high strategic integration, distributive justice perception had a greater effect on brand equity, whereas, in the group with low strategic integration, brand equity was more affected by procedural justice perception. Furthermore, the roles of distributive justice perception and procedural justice perception were found to be complementary. Research Implications The study expands the perception of justice in an inter-organizational environment to a loosely connected channel structure while examining two endogenous variables of relationship performance (i.e. brand equity and relationship duration). This study also finds the moderating effect that justice perception has on relationship performance. By implementing strategic integration intention as a moderator, this study considers the strategic stance of member retailers in the research setting as well. Practical Implications The findings highlight that headquarter managers must understand the role of each sub-dimension of justice perception and balance their application. As the resources for building justice perception can be limited, it is important for managers to allocate resources based on prioritization. Originality This research is a pioneering study on the implementation of justice perception in the relationship between member retailers and buying groups. Additionally, it proposes and proves the conditions required for justice perception to induce a positive attitude on the part of member retailers.

The Window of Opportunity

Abstract This article explores UK bookselling in terms of the retail buying functions, promotional activity, merchandising, and stock management processes commonly adopted. The business structures and mechanisms that dictate organizational book buying in the UK market are also explored in terms of the time allowed for titles to succeed or fail. These very practical and logistical aspects of retailing are brought to life by the qualitative data obtained through seven semi-structured interviews in 2018–2019. The sample represented actors across the UK publishing industry supply chain but focused predominantly on the book buyer function. This research finds that the sale-or-return purchasing model, prevalent in the UK book trade, plays a crucial role in dictating the window of opportunity for books to succeed or fail; the book-buyer gatekeeper function is pivotal and highly sensitive to local demand; and that local demand is fulfilled through the curation of predictable or proven products in combination with novel or speculative products – the level of purchasing risk is dependent on retail location and footfall. These findings are aligned with organizational buyer behaviour, retail location theory, and buyer behaviour theory.

The Role of Customer Experience, Switching Barriers and Consumer Satisfaction in Improving Repurchase Decisions in Retail SMEs

This paper aims to examine and analyze the impact of customer experience, switching barriers and customer satisfaction on repeat purchase decisions in Balung Retail SMEs, Jember Regency. The population of this study were all retail buyers in Balung, Jember Regency. The number of samples was determined by 100 respondents with the condition that the respondents were people who had made purchases at retail. Validity test and reliability test were carried out to test the questionnaire used in the study. Hypothesis testing was carried out to answer the research hypothesis. The results of the study show that customer experience has a positive but not significant effect on repurchasing decisions at Retail MSMEs. Switching barriers have a positive and significant effect on repurchase decisions in Retail SMEs. Consumer satisfaction has a positive and significant effect on repurchasing decisions at Retail MSMEs.

Service-dominant logic: reframing category captainship and retailer category management

PurposeThe category captain system (CC) of retailer category management (RCM) is established, accepted, and widely adopted. The paper empirically assesses the application of this system in building collaborations between retailers and their suppliers to generate growth following COVID-19. This study applies service-dominant logic (S-D logic) to RCM and establishes the current ‘practical’ application of the five axioms of S-D logic within the CC system.Design/methodology/approachThe researchers adopted a qualitative research design which examined both category managers and retail buyers currently involved in the CC system, using thematic analysis of transcripts from 25 practitioner participants.FindingsThe study reveals service is not a fundamental basis of exchange in the CC system. Value is uniquely, independently, and separately created by the retailer that significantly restricts the scope of the category service eco systems and the opportunity to innovate through value co-creation.Practical implicationsSignificant change is required to realise value co-creation and innovation applying S-D logic to RCM. The study indicates there is potential to start this change by the formalisation of wider informal category relationships between non-captain suppliers and retailers through consumer insight technology, and by aligning suppliers and retailers to make more effective and sustainable trading decisions.Originality/valueThe study indicates that certain elements of the CC system proposed by the literature's games-based theoretic models, are not applied in practice. The lived experiences of practitioners suggest informal ways of by-passing the formal system using S-D logic.

ORGANIC SUPPLY CHAIN MANAGEMENT PRODUCTS IN FOOD CLUSTERS: REGIONAL ASPECT

Background. A number of organizations interact in the supply chain of organic products - manufacturers, warehouses, distributors, carriers, wholesale and retail buyers involved in the formation of material, financial, information and service flows from the source of raw materials to the final consumer.
 Purpose. It consists in the development of principles of supply chain management of organic products in the food system of the region
 Materials and methods. The methodological and theoretical basis of the research was the work of domestic and foreign scientists on the management of the supply of organic products in regional food systems. In particular, for a practical example, the Altai Territory was chosen as an ecologically clean region with sufficient land, labor and production resources for the development of organic agricultural production and processing of organic products. In the course of the work, analytical, abstract-logical, monographic and other research methods were applied.
 Results. It is advisable to manage the promotion of organic products in the food system of the region with the help of innovative digital technologies, in particular blockchain, as well as through the system of agricultural information and consulting centers, organization of presentations of organic products, advertising campaigns, participation in exhibitions and fairs at the regional and Russian levels, the opening of "green" shelves by retailers in their networks. The development of organic agriculture in the Altai Territory can have a significant positive effect on the level of economic, social and environmental development of rural areas of the region by activating the regional market of organic agricultural products, involving unused land resources in the production turnover, using innovative technologies in the agro-industrial complex, increasing the employment of rural residents, activating the ecotourism sphere, increasing the economic sustainability of agro-industrial organizations region.
 Conclusion. The development of integrated solutions to these problems with the proper level of coordination of all participants in the supply chain of organic products contribute to the formation of a developing global market for organic raw materials and food, affecting agricultural production models, distribution of income and costs, the introduction of digital technology innovations, the greening of the agro-industrial sector, the development of the economy of agricultural regions.

Stock Market Stimulus

Abstract We study the stock market effects of the arrival of the three rounds of “stimulus checks” to U.S. taxpayers and the single round of direct payments to Hong Kong citizens. The first two rounds of U.S. checks appear to have increased retail buying and share prices of retail-dominated portfolios. The Hong Kong payments increased overall turnover and share prices on the Hong Kong Stock Exchange. We cannot rule out that these price effects were permanent. The findings raise novel questions about the role of fiscal stimulus in the stock market. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Research on retail Buyers’ emotional quotient with focus on transactions on the National Stock Exchange

Investment decision is one of the most essential factors in today’s stock market. People make investment decisions based on different fundamental and technical tools. There are various factors which affect the investor towards investment, but one of the important factors which affect the investor is their emotional intelligence. So, the present study focuses on the how emotional intelligence influences the investment decision. This study is based on the emotional intelligence of investors so that the market can know the beat of the speculator and continue as required. The data was collected from 930 investors who make investment in NSE in Andhra Pradesh. The data was analyzed with the help of correlation analysis. The study reveals that there is a positive relation among the various dimensions of emotional intelligence and investment decisions. This study will help the investment advisors to advise the investors to invest according to their emotional intelligence capability. The usual actuality for stock market investments is subject to not only in making investment decisions in high volatile market circumstances and informational haziness but also by the need to be meticulous in earning something on a consistent basis. The substantial reason is the emotions are part of the evolved mental processes; human beings have for managing uncertainty and competition. Words expressing emotions and feelings such as Dissatisfied, Depressed, Sad, Happy, Cheerful, Satisfied, Fear, Worry, Disappointment, and Trust similarly succeed in the interview scheduling sessions with respondents. Different emotions can be sensed through their connected action tendencies. Fear is, for example, associated with the inclination for flight and love with the trend for an approach. The market moves against the investor. Having never stared at unrealized losses, tell themselves that all their ideas will eventually work. This research examined the relationship between risk-taking behaviour and high levels of extraversion

The role of organizational justice and social interaction in mitigating the negative effects of high-performance member retailers on strategic integration

Drawing on resource-based view, social exchange theory, and organizational justice theory, this study tests the link between high-performance member retailers (HPMRs) and strategic integration to retail buying groups, and the mediation and moderation of social integration and organizational justice, respectively. Using structural equation modeling, we analyze data from 241 independent retailers participating in retail buying groups in Japan. Results reveal that although HPMRs are negatively associated with strategic integration, they also increase strategic integration via enhanced social interaction with other member retailers. Additionally, organizational justice by buying group headquarters weakens the negative link between HPMRs and strategic integration. The study newly shows how member retailers’ past performance characteristics, the role of buying group headquarters, and member retailers’ interactions affect strategic integration to retail buying groups. The findings contribute to resource-based view, social exchange theory, and organizational justice theory by examining how retail buying groups can encourage HPMRs’ strategic integration using social interaction and organizational justice as boundary conditions. Practical and theoretical implications are described.

Assessing the impact of manufacturer power on private label market share in an equilibrium framework

In emerging markets, private label growth has not kept pace with the growth in private labels elsewhere. In Europe and North America, private labels now constitute an average of 35% of total retail market share, but market shares vary between 1% and 8 % in emerging markets. Existing explanations for this observation do not account for the unique nature of manufacturer-retail relationships in emerging economies. That is, in most emerging economies, national brand manufacturers tend to be the sole producers of private labels. We investigate whether national brand manufacturers possess bargaining power relative to retail buyers and, if so, we examine how this may affect private label market shares. The results show that dominant manufacturers set relatively high wholesale prices for private labels, which in turn leads to higher-priced private label products, and low private label market shares.

Decoding revenge buying in retail: role of psychological reactance and perceived stress

PurposeCOVID-19 pandemic-related Government restrictions on the movement of people resulted in consumers moving away from retail outlets. However, sporadic instances of an unexpected surge in retail buying happened across the world immediately after the lifting of such restrictions. This uncommon phenomenon, termed revenge buying, offered an opportunity to revive retail businesses. This paper applies Reactance Theory (RCT) and Self-determination Theory (SDT) to model consumers' revenge buying intentions.Design/methodology/approachData was collected from 384 respondents in India using validated scales. The study used structural equation modelling for model testing.FindingsCOVID-19 restrictions resulted in autonomy need frustration in consumers, which induced psychological reactance and perceived stress. Psychological reactance positively impacted, while perceived stress negatively impacted revenge buying intentions. Thus, revenge buying was observed only when the psychological reactance was more than perceived stress.Research limitations/implicationsThis study, conducted in only one country with a limited convenience sample, limits the generalizability of findings.Originality/valueThis research model the psychological consequences of need frustration to explain the sporadic incidences of revenge buying in retail outlets. Further, it proposes sales recovery strategies for retailers in the immediate post-pandemic market scenarios. Retailers' strategies should focus on alleviating stress and anxiety because of health concerns, highlighting the retail buying experience to stimulate the need to visit the outlet and positioning retail buying as a potential reactance response by consumers.

Revisiting the paradox of whether retail buyers behave more like consumers or industrial purchasers: the case of price discounts

A long-lasting debate in marketing literature is whether retail buyers who purchase consumer products behave like consumers or like industrial purchasing managers. We address this question empirically, by focusing on retail buyers’ behavioral responses to price discounts. Cooperating with a national wholesaler of drugstore products, we conduct a field experiment on the wholesaler’s product ordering platform. We expose the retail buyers (n = 780) to a new product offer that either includes a price discount or not. Simultaneously, we vary peripheral cues included in the offer (package color and organic claim). The results support the “industrial buyer resemblance” argument: The price discount decreases the retail buyers’ purchase likelihood, and there is no significant interaction effect between the price discount and the peripheral cues. An additional qualitative study reveals that retail buyers speculate on the motivations behind the price discount, which elicits suspicions about the product’s quality and resale potential.

Does brand equity matter in small retailers' horizontal strategic alliances?

Drawing on brand equity literature and transaction cost economics, this study investigates the impact of member-retailers' strategic behaviors on the retail buying group's brand equity and how such behaviors are associated with their financial performance in the context of horizontal strategic alliances. The hypotheses were tested using survey data collected from 241 small- and medium-sized supermarket retailers joining retail buying groups in Japan. The study offers evidence that relationship-specific investment directly improves the buying group's brand equity as well as strengthens the brand equity's positive effect on financial performance. Additionally, while contract-based passive opportunism weakens the positive effect of the buying group's brand equity, response-based passive opportunism directly depreciates such brand equity. Our results generate implications for headquarter managers to design and govern retail buying groups.

Consumers’ attitude towards honey consumption for its health benefits: first insights from an econometric approach

PurposeAs is well known, there are several aspects that characterise honey consumption and the reasons for purchasing it. Despite this, little attention has been paid to the drivers that move consumers towards the use of honey for its health benefits and therapeutic properties. The aim of this study is to define which drivers move the consumption of honey for its health benefits.Design/methodology/approachThe study, conducted on 640 Italian honey consumers, applied inferential tests (Chi-square) and an econometric model (logit regression), and showed that about 66% of the respondents stated that they consume honey for its health properties.FindingsThe main drivers of honey consumption are both among the intrinsic (Colour) and extrinsic (Origin and Organic certification) attributes of the product. What also emerges is that the propensity to consume honey for health purposes is influenced by the consumer characteristics and habits, such as Age cohort, Gender, BMI and Large retail buyer. Moreover, we observed that consumption is influenced by BMI but not by lifestyle characteristics such as sport and diet.Originality/valueThis study could be a support tool for policymakers who are interested in promoting good nutrition and improving public health, since there is great interest in the functional properties of foods and the need to enhance the value of products, while at the same time ensuring consumer protection.

Prolonging retailer-supplier relationship: a study of retail firms during COVID-19 pandemic

The world is beholding new drifts in retail buying, health services, social factors during the current pandemic. Retailers and suppliers are challenged to take the risk and prepare themselves to implement strategic actions according to the dynamic environment. This study has made an effort to identify the key determinants of the retailer-supplier relationship to be focused on surviving amidst COVID-19 pandemic. This study aims to identify the key determinants of retailer-supplier relationship and assessing retail firms' supply chains appropriate as per key determinant to be intensive in a pandemic situation. The work reveals collaboration efficiency and co-creation are the prominent determinants for dealing the retailer-supplier association. The study shows that order fulfilment is the most suitable RSCs for creating co-creation and capabilities in managing humanitarian logistics to survive in the COVID-19 pandemics.

“THE IMPACT OF COVID-19 ON RETAIL INVESTORS' SPENDING AND INVESTMENT BEHAVIOUR”

The extraordinarily infectious sickness corona virus has had a worldwide effect within the twelve months of 2020. This unpredictable and remarkable calamity has pushed economies to battle and strive. Most of the sectors within the financial system were significantly hit, which caused significant financial strain. There is a paradigm shift within the round drift of earnings, which has affected the way of life and modified human beings' spending and funding behaviour. This looks at objectives to understand how the COVID-19 pandemic has encouraged the economic decision-making and funding preferences of retail buyers. This study paper also researches the changes in the spending patterns of human beings for the duration of the lockdown because of COVID-19. A sample survey was performed via a based questionnaire to determine the effect of the pandemic on people's investment choices inside the town of the Pune region. A random sampling technique has been used to acquire the information for the study. The examine's findings display that human beings' existence and spending habits have changed significantly due to the pandemic worry and lockdown. The study additionally suggests that there has been a shift in the spending preferences of people toward healthy products and essentials.

International Retail Buying Groups: A Force for the Good? The case of AgeCore/EDEKA

International Retail Buying Groups: A Force for the Good? The case of AgeCore/EDEKA