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Article
Publication date: 11 October 2011

Enping (Shirley) Mai, Jun Yang and Haozhe Chen

The purpose of this paper is to examine the relationship between primary product network size and the sales of complementary products, and to suggest customer characteristics…

1240

Abstract

Purpose

The purpose of this paper is to examine the relationship between primary product network size and the sales of complementary products, and to suggest customer characteristics moderating this relationship.

Design/methodology/approach

A panel dataset in the online video game industry was used to verify the proposed theoretical framework. Two‐level hierarchical linear modeling is used to test several hypotheses.

Findings

The authors' analysis results suggest there is a positive relationship between the primary product network size and the sales of complementary products. Also, two customer characteristics (previous transaction value and customer purchase frequency) were found to positively influence the complementary product sales. The primary product's network size has a stronger impact on complementary product sales for light buyers compared to heavy buyers.

Research limitations/implications

This study only focused on online video industry, and the price differentiation of the products might not be adequately significant. Other relevant factors (such as word‐of‐mouth (WOM)) or other customer characteristics could also be relevant to complementary product sales. Therefore, future research could use data triangulation to collect data in different contexts, through a longer period of time, to test and verify the proposed relationships.

Practical implications

Product managers need to better understand the relationship between the primary product network size and the complementary product sales. They should adjust the marketing strategies toward different customer purchase frequency segments correspondingly. For example, to benefit further from the primary product network size, complementary product retailers can create online forums for all primary product users to influence light complementary product buyers.

Originality/value

This research is one of the first empirical investigations of establishing the relationship between primary product network size and complementary product sales, with customer characteristics as moderators.

Details

International Journal of Retail & Distribution Management, vol. 39 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 15 April 2024

Bin Liu, Jing Sun and Zongsheng Huang

We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.

Abstract

Purpose

We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.

Design/methodology/approach

We construct a supply chain model with a retail platform as the leader and manufacturers as the followers. Manufacturers face differential consumer preferences on the same agency retail platform, and they can sell a bundled extended service product and sell a separate product without any extended service.

Findings

The sale of extended warranty services on the retail platform leads to lower pricing of the manufacturers' products and changes in the product market structure in response to differences in consumer preferences. The retailing platform tends to provide an extended warranty conditionally. The sale of extended warranty services on a retail platform would be detrimental to the interests of the manufacturer who sells products with extended warranty services and in favor of the manufacturer who sells products without them.

Originality/value

The equilibrium results of the retail platform’s non-sales and sales of extended warranty services for the no-extended warranty product under the same commission rate and differential commission rate models are discussed, and the product structure of the market is investigated, respectively.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 23 March 2012

Jungmin Yoo and Minjeong Kim

The purpose of this paper is to examine the effects of product coordination and a model's face on consumer responses in terms of affective states, perceived amount of information…

2645

Abstract

Purpose

The purpose of this paper is to examine the effects of product coordination and a model's face on consumer responses in terms of affective states, perceived amount of information and purchase intention.

Design/methodology/approach

The design of the study was a 2 (product presentation: coordinated vs uncoordinated) × 2 (model's face: present vs absent) between‐subjects design. A convenience sample of 243 college students participated in a web experiment.

Findings

The results suggest that complementary apparel items should be coordinated together (e.g. pairing t‐shirt and pants together on a model) on the web sites to produce favorable consumers' shopping outcomes. However, contrary to prior research findings, consumers perceived more information when no model's face was present with the product than when an attractive model's face and body were shown together.

Research limitations/implications

This study used a convenience sample of college women. Thus, future research needs to include a more diverse group of e‐shoppers to enhance generalizability of the findings.

Practical implications

The findings of the study provide useful insights that apparel e‐retailers can utilize to develop more effective e‐retailing web sites. Based on the findings, product coordination without a model's face is recommended for e‐retailers.

Originality/value

Overall the paper's findings provide empirical support for the Stimulus‐Organism‐Response (S‐O‐R) model and the ensemble effect.

Details

Journal of Research in Interactive Marketing, vol. 6 no. 1
Type: Research Article
ISSN: 2040-7122

Keywords

Article
Publication date: 31 January 2022

Sarat Kumar Jena

Many e-commerce firms suffer from high returns because of inaccurate and incomplete product information. Omnichannel and bundling settings can help firms improve operational…

Abstract

Purpose

Many e-commerce firms suffer from high returns because of inaccurate and incomplete product information. Omnichannel and bundling settings can help firms improve operational efficiency and lower returns costs. However, no studies have been conducted on omnichannel supply chains considering bundling strategies. The purpose of this study is to examine the comparison between test-in-store-and-buy-online (TSBO) and online retail, comparing manufacturers’ bundling with retailers’ bundling.

Design/methodology/approach

The supply chain discussed here consists of two competitive manufacturers and one retailer. The retailer sells both manufacturers' products online and displays one manufacturer's product in a showroom who bears the display cost. Stackelberg game theory is used to develop mathematical models that help manufacturers and retailers make the most effective decisions. Here, the manufacturer is the Stackelberg leader, while the retailer is the follower. Using the backward induction approach, the authors determined the optimal values for selling price, wholesale price and service effort level.

Findings

The results show that the total TSBO retailing profit under manufacturer bundling is highest when the second manufacturer integrates with the online retailer. The result additionally establishes that when the bundling cost exceeds a certain threshold (1.5), the total profit is higher for the non-integrated type of supply chain channel as compared to the integrated retailer bundling-based configuration.

Practical implications

The operations and logistics manager will likely undertake the TSBO omnichannel strategy during manufacturers bundling and retailer bundling under the integrated strategy.

Originality/value

The main contribution of the study is to examine the effect of TSBO retailing on supply chains profit and individual decision-making under different bundling strategies. The authors developed different mathematical models in the TSBO retailing and bundling context and extended the earlier work in the area of integration frame.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

Content available
Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

Article
Publication date: 1 February 1983

Leif Kristenson

Examines the complexities of strategic planning in retailing. Highlights the importance of a good knowledge of consumer basis as a foundation for a successful retailing strategy…

1441

Abstract

Examines the complexities of strategic planning in retailing. Highlights the importance of a good knowledge of consumer basis as a foundation for a successful retailing strategy. Discusses four main factors contributing towards profit in the retailing industry: Needs or motives; Attitudes or patterns of consumption; Consumption habits; Purchasing habits. Analyses continual influences which must be considered as part of a coherent retailing programme: Synergy effect; Resources; Environmental factors; Changing ways of satisfying needs; The increased complexity of the retailing environment; Competition. Concludes that retailing is an extremely complex subject – whereas a producer is concerned about the various quality dimensions of his own product, a retailer is obliged to take care of a multiplicity of products, each bearing its own characteristics. Asserts that strategic planning is an effort to organise this variety, not an answer to solving it.

Details

European Journal of Marketing, vol. 17 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 2 March 2020

Yong Liu, Xiaoying Wang and Wenwen Ren

This paper attempts to analyze the relationship between the complementarity degrees of imperfect complementary products and sales strategies and give appropriate sales strategies…

Abstract

Purpose

This paper attempts to analyze the relationship between the complementarity degrees of imperfect complementary products and sales strategies and give appropriate sales strategies for a two-stage supply chain.

Design/methodology/approach

With respect to two-stage supply chain consisting of two manufacturers who produce imperfect complementary products and one retailer who sells the products, aiming at bundling sales strategy, the authors define complementarity elasticity of products and use it to measure the degree of complementary between two products. Based on Stackelberg game and cooperation, the authors analyze the relationship between the complementarity degrees of imperfect complementary products and appropriate sales strategies.

Findings

As the impact of complementarity degree on sales strategy decision-making is better, the authors can pinpoint out which sales decision-making is optimal and which bundling sales strategy is the best for a two-stage supply chain. Considering that the degree of complementarity has a significant impact on the product sales strategy, the authors can point out which sales decision-making is optimal, that is, which bundled sales strategy is the optimal in the secondary supply chain of selling complementary products.

Practical implications

An innovative bundling can expand the sales of existing products and new products. It helps a retailer transcend and defeat competitors by reducing marketing expenses while increasing profits. Proper use of bundling can improve consumers utility and create an overall positive effect for both the enterprises and consumer.

Originality/value

The research can help some retailers to make many appropriate bundling sales strategies.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 15 February 2016

Lalit Manral

The purpose of this paper is to articulate a customer-centric logic to explain the strategic behavior of multi-product corporations whose portfolio of complementary product

Abstract

Purpose

The purpose of this paper is to articulate a customer-centric logic to explain the strategic behavior of multi-product corporations whose portfolio of complementary product offerings belong to diverse industries.

Design/methodology/approach

The paper develops a theoretical framework to explain the heterogeneity in multi-product corporations ' motivation and ability to leverage the demand-side strategic assets developed in their home-markets to enter new markets and thereby improve their long-run corporate performance.

Practical implications

The paper includes implications for strategic behavior of multi-product corporations in various industrial sectors such as telecommunications, financial services, consumer discretionary and staples, real estate, and so on.

Originality/value

The profitable applicability of demand-side strategic assets to new contexts should be explained both by the motivation of multi-product consumers (to purchase a portfolio of complementary products from a diversified seller) as well as the motivation of multi-product corporations (to leverage their demand-side strategic assets to enter new markets).

Details

Journal of Strategy and Management, vol. 9 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 27 June 2018

Johan Kask and Frans Prenkert

Retail has evolved over the past century alongside megatrends such as urbanization, consumerism and digitalization. To contribute to existing knowledge on patterns of retail form…

Abstract

Purpose

Retail has evolved over the past century alongside megatrends such as urbanization, consumerism and digitalization. To contribute to existing knowledge on patterns of retail form evolution, the purpose of this paper is to investigate when and how novel retail forms have evolved in the Swedish sporting goods market.

Design/methodology/approach

An evolutionary approach that encompasses population thinking is used to interpret the history of sporting goods retailing in Sweden from the interwar era onwards. Drawing on archival data and interviews, the focus in the historical analysis is on the evolution of retail form variation in terms of size, strategy, product range and retail channel (online/offline).

Findings

The paper suggests that evolutionary mechanisms cumulatively have changed the sports retail population from a rather homogenous set of smaller generalist stores toward a larger variety and specialization in mainly two directions: one trajectory toward small and service-focused niche specialists and the other toward high-volume sales outlets.

Originality/value

The paper provides a detailed empirical account of sports retail history in Sweden and an application of theoretical concepts contributing to an integrated investigation of empirical issues and theoretical positions. It concludes that being able to attain “closures” – finding ways to close off a section of the market and avoid direct competition – has historically been a crucial capability for individual retailers to thrive.

Details

Journal of Management History, vol. 24 no. 3
Type: Research Article
ISSN: 1751-1348

Keywords

Article
Publication date: 5 June 2007

Ulf Elg

The main purpose is to provide an in‐depth understanding of market orientation in retailing and to identify the specific activities that have to be understood and managed in order…

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Abstract

Purpose

The main purpose is to provide an in‐depth understanding of market orientation in retailing and to identify the specific activities that have to be understood and managed in order for a retail firm to become market oriented.

Design/methodology/approach

Qualitative studies of six firms in Sweden, Italy and the UK were carried out, including in‐depth interviews with retail managers and manufacturers.

Findings

Three market orientation processes on different operational levels are identified, including critical activities that support each process. Linkages between retail market orientation and different background characteristics are also identified.

Research limitations/implications

The qualitative, in‐depth approach using a limited number of respondents means that the results are not generalizable. The findings can serve as a basis for future operationalizations of retail market orientation in order to measure the degree of retail market orientation as well as its character with regards to the emphasis a certain retailer puts on each of the processes.

Practical implications

The identified three processes and the corresponding activities can assist retailer managers in developing a more systematic market orientation approach.

Originality/value

The paper is a first attempt to develop a framework for market orientation in retailing based on the specific nature of retail marketing and management. It also shows that the quality and relevance of the market data in relation to the specific strategic activity that it is expected to support should be given much more consideration.

Details

European Journal of Marketing, vol. 41 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

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