Retailer Relationships Research Articles

The Effect of Retailer Awareness, Retailer Quality Perception, Retailer Relationship Quality on Customer Loyalty Mediated Customer Satisfaction (A Study of Perahu Salt Brands)

Salt is a basic need that is no less important than sugar. Almost every household needs consumption salt every day. The existence of salt in everyday life cannot be ignored. The problem that arises in this study is that in recent years sales at perahu salt have experienced fluctuating sales, some complaints about the services provided by Perahu salt principal sales are still unsatisfactory to retailers, especially wholesalers. The purpose of this study is expected to be used by company management as a reference to provide customer satisfaction through the services provided by the principal of the Perahu salt producer through retailer awareness, perceived retailer quality, relationship quality, customer satisfaction and customer loyalty. Quantitative data is taken directly from filling out questionnaires from shops, especially wholesalers in the Central Java area. The results showed that in order to increase customer loyalty in purchasing Perahu salt through retailers, Perahu salt customer satisfaction through retailers needs to be improved. Increasing Perahu salt customer satisfaction through retailers can be done through retailer awareness, perceived retailer quality and relationship quality. Retailers have a big role in driving sales of Perahu salt. When the retailer has the power where the customer realizes the existence of the retailer, the customer will want to make a purchase at the retailer, especially when the customer and the retailer have a good quality relationship such as the customer has a long transaction relationship with the retailer, then this will satisfy the customer more. When customers feel this satisfaction, there is an increase in customer loyalty where customers will want to continue making purchases.

The Effectiveness of Membership-Based Free Shipping: An Empirical Investigation of Consumers’ Purchase Behaviors and Revenue Contribution

Membership-based free shipping (MFS) has been increasingly adopted by online retailers. However, its effectiveness is understudied. This study leverages a consumer transaction data set provided by an online retailer and uses a stacked difference-in-differences approach to quantify the enrollment effect of MFS on consumers’ purchase behaviors and their net revenue contribution to the retailer. Interestingly, MFS enrollment does not lift average consumers’ spending at the beginning of the enrollment, as they break large orders into smaller ones. Retailers do not gain incremental net revenue due to the increased shipping costs during this period. However, the free shipping benefit may build a switching barrier that motivates consumers to purchase more often with larger order sizes over time. It eventually leads to increased spending and revenue contribution. MFS also increases members’ purchase variety and impulse purchases. In addition, the authors find that there is a greater increase in net revenue contribution after enrollment for light buyers, variety seekers, and those who are willing to pay shipping fees before enrollment. Surprisingly, MFS has a negative impact on the revenue contribution of heavy buyers, the conventional best-value consumers. Moreover, MFS can effectively strengthen consumer–retailer relationships by reducing customer churn.

Manufacturer–Retailer Relationships and the Distribution of New Products

This paper presents empirical evidence and develops a repeated-game model for manufacturer–retailer relationships and demonstrates that these relationships limit the impact of regulations.

How integrated store-service quality promotes omnichannel shoppers’ word-of-mouth behaviors: the moderating role of perceived relationship investment and the shopper’s perceived value

PurposeThe post-purchase behavioral responses of omnichannel shoppers, who mainly rely on physical stores (acknowledged as a crucial channel in providing a seamless shopping experience and fulfilling the dynamic needs of the shoppers), are still understudied. The purpose of this paper is to examine how integrated store service quality (ISSQ) can contribute to a more optimal shopping experience (cognitive, affective and relational) and have a subsequent impact on shoppers’ psychological ownership toward the store, resulting in the generation of (face-to-face, online and social media) word of mouth (WOM).Design/methodology/approachThe research is descriptive, quantitative and cross-sectional investigation. A purposive sampling technique was used for selecting the study respondents. The data were collected from 786 Indian omnichannel shoppers using a validated self-administered questionnaire. The proposed conceptual model was tested using partial least squares structural equation modeling.FindingsThe results indicate that all three dimensions of omnichannel customer experience (cognitive, affective and relational) positively mediate the relationship between ISSQ and psychological ownership, subsequently impacting all three WOM behaviors of omnichannel shoppers (face-to-face, online store and social media). The customer’s perceived value with the store and their perceived retailer relationship investment significantly moderated the relationship between ISSQ and different WOM behaviors (face-to-face, online store and social media). This research also demonstrated the direct impact of ISSQ on WOM and the indirect impact through different customer experience dimensions and psychological ownership.Research limitations/implicationsThe sample used in the study was not probabilistic and, therefore, presents limitations for the possibility of generalizing the results. The study was performed in a cross-sectional methodology in the Indian context; there is a need for longitudinal investigation.Originality/valueThis study addresses the need to investigate different dimensions of omnichannel customer experience that might influence various post-purchase behavioral responses. This study is the first to show that ISSQ might affect omnichannel shoppers' online, offline and social media word-of-mouth behaviors through different customer experience dimensions and the customer’s sense of belongingness to the store. The moderating effect of customer perceived value with the retailer and their perception of retailers’ investment in a relationship on proposed hypotheses was also tested to give managerial recommendations.

A Study on the Promotional Methods Carried out by the Agro Retailers from Farmer’s Perspective: Theni District, Tamil Nadu

Background: Unlike other organized retailbusinesses agro retail business does not have any territorial rights to avoid competition. There are many new agro retailers who have entered the market and also the agromanufacturers by themselves have direct connect with these retailers to monitor the sales and movement of goods these days.
 Purpose: The purpose of this study is to explore the promotional methods and strategies carried out by the agro retailers to influence farmers which results in repeat purchases.
 Theoretical framework:‘The repeat purchase by a customer is due to the benefits that he or she seeks from the retailer and how the purchasing behavior of the consumer changes over the time’ by Jacob, Frank. (2014).‘Customer retention is concerned with the relationship between the customer and the retailer on a long term and a main outcome of it is customer making repeat purchases from the same retailer’ according to Sohail M.S. (2012).Thus a repeat purchase by a customer can be the benefits they get from the retailer or the relationship that the retailer maintains. So this study will compare the monetary benefits like credits, discounts and offers provided by the retailer with the relationship factor between the farmer and the retailer.
 Objectives: To find out the various promotional factors by agro retailers to make farmers to revisit their shop for purchase. Secondly, to measures the effective promotional methods by agro retailers which results in more number of repeat purchases by the farmers
 Methodology: TargetTheni district has 94 villages. In which 120 farmers were selected through cluster random sampling.A questionnaire is developed to collect the primary data and also secondary data is collected to augment the information acquired through primary data for counsel
 Findings: The study discovers the effective promotional methods adopted by the agro retailers which make the farmers to do repeat purchases from their retail shop. This paper also deliberates the inference of the research discoveries and also provides few directions for future research with some limitations
 Research, Practical & Social implications:This study suggests the managers of agro manufacturers to design a marketing plan with effective road map of strategies and the findings of the study will be helpful for agro retailers to frame their marketing plan and budget accordingly in order to increase the customer loyalty. If all agro manufacturers, retailers and farmers go hand in hand then it might support the growth of agricultural sector in India
 Originality/Value: The study contributes to the research in rural marketing in two ways: At first, the methodological contribution, which is the introduction of monetary and non-monetary promotional approach in agro retail industry and secondly the theoretical contribution, which is uncovering of invisible value formation in the farmer retailer relationship.

Challenging the Comparison in Montgomery Between Patients and 'Consumers Exercising Choices'.

In Montgomery v Lanarkshire Health Board, Lords Kerr and Reed referred to the increasing tendency to treat patients ‘as consumers exercising choices’. The question of whether it is helpful to regard patients as consumers is not a new one, but it arises most frequently in discussions about the commercialisation of healthcare. Comparing patients with consumers in relation to informed consent is an interesting development, especially in the light of the growing body of contract and consumer law scholarship which questions the extent to which information disclosures to consumers produce informed choices. If there is evidence that the duties of disclosure which are imposed on retailers, in order to redress the imbalance of knowledge and power in the consumer–retailer relationship, do not always fulfil their intended purpose, might this have any resonance for the duties of disclosure which are imposed upon healthcare professionals?

Strategic sourcing: An empirical study among Indian construction retailers

The Indian retail industry is an emerging sector particularly in the construction segment. Retailers play a major role in sourcing of construction materials. This paper aims to identify the factors responsible for strategic sourcing and to find the influence between them for effective business transactions among construction material retailers in India. Primary data was collected using a structured questionnaire and an adequate sample of 330 responses were obtained from the targeted respondents using convenient sampling method. Following statistical tests for validity and reliability, Structural Equation Model was used to analyse the data. Based on previous studies, five variables were identified: unstructured buying, retailer evaluation, retailer disengagement, retailer relationship management and strategic sourcing and 21 key items were considered for the survey. With the factors, a conceptual model was formulated, and hypotheses were framed and tested. Among the five hypotheses, four hypotheses were supported in the study. All variables except unstructured buying have a strong positive influence on strategic sourcing. The study's implications include creating a long-term relationship with retailers and enhancing strategic sourcing practices in the Indian construction sector. This study serves as a literature resource in strategic sourcing and adds value to construction supply chains.

Retailing with 3D Printing

Given the promise of three‐dimensional (3D) printing, also known as additive manufacturing, some innovative consumer goods companies have started to experiment with such a technology for on‐demand production. In this study, we consider two adoption cases of 3D printing in a dual‐channel (i.e., online and in‐store) retail setting, and evaluate its impact on a firm’s product offering, pricing, and inventory decisions. Our analysis uncovers the following effects of 3D printing. First, 3D printing at the factory has the substitution effect of technological innovation for online demands, as 3D printing replaces the traditional mode of production. Such technology substitution not only leads to increased product variety offered online, which allows the firm to charge a price premium for online customers, but also induces the firm to offer a smaller product variety and a reduced price in‐store. There is an additional environmental benefit when more customers are steered from the in‐store channel to the online channel. Second, when 3D printing is used in‐store as well, in addition to the substitution effect, the firm also achieves a structural effect due to the fundamental change in the supply chain structure. Since the in‐store demand is served in a build‐to‐order fashion, the firm achieves postponement benefits in inventory management. The environmental benefit is the most significant in this case. Moreover, using 3D printing in‐store will require a new supplier–retailer relationship. We find that cost‐sharing contracts can coordinate the supply chains where 3D printing is used in‐store and the supplier controls the raw material inventory.

Understanding the role of service attributes in consumer small retailer relationships: findings from Pakistan

The purpose of this study is to identify the impact of service attributes consisting of assortment, service and store environment, on satisfaction and relationships among consumers and small retailers. Further, the impact of satisfaction and relationship was also analysed on loyalty. The sample size for this study was 318 grocery retail customers. Partial least square structural equation modelling has been used as a statistical technique. It was concluded that all independent variables had significant positive impact on dependent variables, except that assortment was found to have no significant impact on the relationship. Findings of the study are discussed whereas practical implications are also highlighted.

Understanding the role of service attributes in consumer small retailer relationships: findings from Pakistan

The purpose of this study is to identify the impact of service attributes consisting of assortment, service and store environment, on satisfaction and relationships among consumers and small retailers. Further, the impact of satisfaction and relationship was also analysed on loyalty. The sample size for this study was 318 grocery retail customers. Partial least square structural equation modelling has been used as a statistical technique. It was concluded that all independent variables had significant positive impact on dependent variables, except that assortment was found to have no significant impact on the relationship. Findings of the study are discussed whereas practical implications are also highlighted.

Influence of Information Quality on Retailer Satisfaction through Supply Chain Flexibility and Supplier Relationship Management in the Retail Industry

Businesses always compete to improve customer satisfaction. A firm engaged in as a distributor as well, always try to provide satisfaction to their customer, in this case, retailer and wholesales. The distributor can improve retailer satisfaction by providing such information that suits retailer requirements in the pursuit that the supply chain flow can move quickly, particularly on the flow of products from the manufacturing ordered by the distributors. This study aims to obtain a relationship between distributors and retailer companies. This study surveyed 100 retailers, and wholesale companies engaged in Fast Moving Consumer Goods (FMCG) and the supplier domiciled in the city of Makassar, South Sulawesi, with revenues of more than IDR 300,000,000. - / year. SmartPLS software version 2.0 was used to test the hypothesis. The results of the study found that information quality can provide a positive increase in improving supplier relationship management. Adequate information quality cannot significantly increase supply chain flexibility and retailer satisfaction. Supplier relationship management built by distributors can have an impact of 0.611 on supply chain flexibility in retail and retail satisfaction companies of 0.367. The stronger distributor and retailer relationship can increase distributor flexibility and retail satisfaction. Supply chain flexibility built by distributor companies can have a significant impact on retailer satisfaction of 0.463. This research provides an improvement in the development of supply chain management theory, in particular, building relationships with customers.

Influence of Information Quality on Retailer Satisfaction through Supply Chain Flexibility and Supplier Relationship Management in the Retail Industry

Businesses always compete to improve customer satisfaction. A firm engaged in as a distributor as well, always try to provide satisfaction to their customer, in this case, retailer and wholesales. The distributor can improve retailer satisfaction by providing such information that suits retailer requirements in the pursuit that the supply chain flow can move quickly, particularly on the flow of products from the manufacturing ordered by the distributors. This study aims to obtain a relationship between distributors and retailer companies. This study surveyed 100 retailers, and wholesale companies engaged in Fast Moving Consumer Goods (FMCG) and the supplier domiciled in the city of Makassar, South Sulawesi, with revenues of more than IDR 300,000,000. - / year. SmartPLS software version 2.0 was used to test the hypothesis. The results of the study found that information quality can provide a positive increase in improving supplier relationship management. Adequate information quality cannot significantly increase supply chain flexibility and retailer satisfaction. Supplier relationship management built by distributors can have an impact of 0.611 on supply chain flexibility in retail and retail satisfaction companies of 0.367. The stronger distributor and retailer relationship can increase distributor flexibility and retail satisfaction. Supply chain flexibility built by distributor companies can have a significant impact on retailer satisfaction of 0.463. This research provides an improvement in the development of supply chain management theory, in particular, building relationships with customers.

Cooperation and Competition in Manufacturer–Key Retailer Relationships: a Business Model Perspective

The study investigates relationships between manufacturers and their key retailers in the Polish durable consumer goods industry from the manufacturer’s perspective. The importance of this topic has been growing with such global phenomena in retailing as concentration and internationalization, the emergence of mega-retailers, the growth of private brands and the rise of the Internet. The balance of this factors has led to a shift in bargaining power towards retailers. On this backdrop, the goal of this study is to examine how a manufacturer’s dependence on the key retailer shapes this relationship in terms of its cooperative/competitive dimensions, scope and outcomes, and if the dominant business models of manufacturers are moderating the focal relationship. The three types of business models include: Traditionalists (unwilling to enter into longterm partnerships despite lacking unique assets), Market Players (the most flexible of the three in choosing their partners and deciding on the scope of cooperation due to their unique assets) and Contractors (the most dependent on their business partners due to their lack of well-developed marketing functions). Data for the study were collected through a representative CATI survey of 580 manufacturers and analyzed with PLS structural equation modeling. The findings indicate that high manufacturer dependence on the key retailer can have positive impacts on manufacturers by inducing greater benefits from cooperation. This effect is the most pronounced among Traditionalists and is the least visible in Market Players, with Contractors showing intermediate effects. Some likely reasons for these positive effects include know-how transfers, extension of the distribution network, manufacturing contracts for private labels and marketing support from the key retailer.

Outsourcing, information symmetry and governance

PurposeThe purpose of this paper is to examine the effects of retailers’ organizational controls and controls of their boundary personnel on manufacturers’ outsourcing performance. It further assesses the moderating impact of information symmetry in this context.Design/methodology/approachData were collected from 230 Indian apparel manufacturers engaged in outsourcing activities with two international retailers. Organizational control is scrutinized as formal and informal controls, and outsourcing performance is studied in terms of efficiency and effectiveness. The partial least squares approach is used to test the proposed research model.FindingsFirst, the retailers’ and the boundary person’s formal controls have a direct, positive effect on outsourcing efficiency. Second, although no significant effect of the boundary person’s formal controls on outsourcing effectiveness is identified, a significant effect of retailers’ formal controls on effectiveness is seen. Third, the boundary person’s informal controls are associated with a decrease in efficiency, whereas they have a positive effect on effectiveness. Fourth, although the retailers’ informal controls enhance outsourcing effectiveness, they negatively affect efficiency. Fifth, information symmetry is statistically significant in enhancing outsourcing efficiency and effectiveness.Practical implicationsThe results have important implications for retailers and retailers’ boundary persons who are keen to improve their relations with manufacturers. This paper offers practical insights into the ways that manufacturers, boundary personnel and retailers can exercise control mechanisms in order to achieve effective and efficient outsourcing outcomes.Originality/valueThe effect of organizational control and information symmetry on outsourcing performance in typical outsourcing practices in manufacturer‒retailer relationships is shown.

Response of Fresh Food Suppliers to Sustainable Supply Chain Management of Large European Retailers

This article analyses new supply chain management (SCM) strategies of the largest retail distribution chains in Europe within the context of differing sustainability concepts and approaches. An analysis is carried out of the strategic plans of such retailers, as well as recent developments in the sector. We begin by identifying the priority actions of retailers and then evaluating, by means of a survey, how small horticultural marketing firms (mainly cooperatives) in southeast Spain respond to the needs of these retailers. Subsequently, an analysis is carried out on these small marketing firm exporters to identify the relative weight which they assign to the variables assessed, while also considering the existing relationships between said weighted variables and business profits. Our results show that retailers tend to establish more simplified supply chains (that is, shorter and more vertical), essentially demonstrating their interpretation of a sustainable supply chain. In contrast, horticultural marketing firms have concentrated more on tactical and operational issues, thereby neglecting environmental, social and logistics management. Thus, their success rate in meeting the sustainability demands of their customers can be considered medium-low, requiring a more proactive attitude. Improved and collaborative relations, and the integration of sustainability concepts between suppliers (marketing firms) and their clients could contribute to successfully meeting sustainability demands. From the point of view of the consumer, close supplier–retail relationships have solved food safety issues, but the implementation of sustainability in other supply chain activities and processes is a pending issue. We propose strategic approximation and collaboration to bridge the gap between the varying sustainability demands in the supplier–retail relationship within perishable supply chains. Although this article specifically addresses fresh vegetable supply chains, the results may be extrapolated to other agri-food chains with a similar structure.

Power advantage: antecedents and consequences in supplier–retailer relationships

PurposeThe research indicates that relatively powerful firms exploit their advantages to damage their weaker partners. However, how power can be abused by advantaged firms remains unclear. This study aims to examine the relationship between power advantage and abuse of power and whether the power advantage mediates the relationship between dependence and personal interests and between trust and company performance.Design/methodology/approachA total of 130 retailers in Taiwan were investigated. Partial least squares regression was performed to test the proposed hypotheses.FindingsThe results of this study show that power-advantaged firms are more likely to abuse their power; however, the purposes are more for their company performance than for personal interests. Power advantage has different mediating effects on the dependence–personal interests and trust–company performance relationships.Research limitations/implicationsConsidering both time and cost limitations, this study investigated one aspect of the retailer–supplier dyad in northern Taiwan. The samples collected may be influenced by the nature of the industry and sampling method, possibly limiting the generalizability of the research results.Practical implicationsThis study can help channel managers with a power advantage to have an improved understanding of their salespersons’ behavioral patterns, particularly gaining personal interests from customers.Originality/valueThis study expands the understanding of the antecedents and consequences of power advantages in supplier–retailer relationships. It also highlights in specific institutional arrangements, the weaker parties’ efforts to endure their counterparts’ use of their power advantage to serve their personal interests. Future research may analyze abuse of power by expanding research to other industries and different cultural contexts.

The Dynamics of Online Consumers’ Response to Price Promotion

How does consumers’ price sensitivity at an online retailer change over time? And can we predict their response to price promotion by identifying the latent states of the online consumer–retailer relationship? Our quantification of transits across the consumer–retailer relationship states provides unique insights. For example, price promotion can strengthen consumers’ loyalty only for at least moderately loyal consumers whereas it is not effective at changing nonloyal consumers’ attitudes toward an online retailer (i.e., from nonloyal to loyal). Being opposed to the results from the off-line market, the consumers even in the strong relationship state are likely to seek more coupons as they increase their online shopping experience. The switching behavior observed even after online consumers reach the strong relationship state shows one aspect of the fierce price competition in the online market. Managers in online retailers pay attention to the recent change in a consumer’s buying behaviors rather than the long-term trend of the consumer’s purchase behavior. For instance, the increase of the recent purchase volume strengthens loyalty toward the retailer and/or the habit of buying without a coupon for the consumers in the strong relationship state.

Building Commitment in Supplier–Retailer Relationship in Developing Economies: The Case of Tanzania

This article investigates the establishment of commitment in developing economies between suppliers and retailers. Previous studies in supplier–retailer commitment relationship used data only from one side. Furthermore, knowledge of institutions governing relational exchanges was limited. Network relationship theory and cross-case analysis of sixteen cases that comprised retailers and suppliers were used. The study shows that affective and behavioural commitments are important in understanding the level of relationship between retailers and suppliers in Tanzania. Implications of the study and areas for further research were provided.

Optimal replenishment cycle for perishable items facing demand uncertainty in a two-echelon inventory system

We consider a two-echelon supply chain with an upstream manufacturer and a downstream retailer for a single perishable product. The manufacturer processes raw materials into finished products, which are purchased by the retailer in each replenishment cycle. The raw materials of the manufacturer are highly perishable (i.e. perishing within hours or days), and the finished goods at the retailer face demand uncertainty and obsolescence. We model the manufacturer–retailer relationship as a Stackelberg game where the retailer is the leader and decides the replenishment cycle that minimises its mismatch cost between supply and uncertain demand. The manufacturer is the follower and decides its processing rate to minimise its unit cost for finished goods. Our results show that the raw material and finished goods lifetimes, which are interrelated through the duration of the replenishment cycle, have a significant impact on supply chain costs. Although raw material spoilage cost by itself is low, we show that short raw material lifetimes have a significant impact on the costs of both parties. Additionally, we find that while high manufacturer markups increase retailer costs, they reduce the manufacturer's costs due to large production batches.

The Use of Hacking as a Cybercrime Investigation Technique in Sri Lanka through the Perspectives of the Right to Privacy as Enumerated in Article 17 of International Covenant on Civil and Political Rights, Article 8 of European Convention on Human Rights and Fourth Amendment to the US Constitution

The Use of Hacking as a Cybercrime Investigation Technique in Sri Lanka through the Perspectives of the Right to Privacy as Enumerated in Article 17 of International Covenant on Civil and Political Rights, Article 8 of European Convention on Human Rights and Fourth Amendment to the US Constitution