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1 – 10 of 677Isabelle Collin-Lachaud, Guillaume Do Vale, Jonathan Reynolds and Richard Cuthbertson
Digitalization and multi-channel strategy have appeared as recurrent themes in retailing for years, yet some major international as well as domestic mass retailers have chosen to…
Abstract
Purpose
Digitalization and multi-channel strategy have appeared as recurrent themes in retailing for years, yet some major international as well as domestic mass retailers have chosen to retain a single, physical channel focus for customer transactions. These retailers, despite the digital mindset preoccupying the retailing sector, have chosen to rely fully, or predominantly, on their stores to generate revenues. A number of questions arise from this approach. This paper aims to understand the rationale for marketing and strategic practices which appear to go against the dominant, strongly digitally oriented, discourses and practices in the field of retailing. Why do some retailers choose not to add a digital transactional channel? Are there defensible reasons for this choice? Can such a strategy successfully create value?
Design/methodology/approach
This research is based on a qualitative, multiple case study of the strategies adopted by Primark (fashion) and Aldi (food), two major retailers that retain a largely single-channel transaction focus, in France and the UK.
Findings
This research suggests that some retailers may still be able to succeed by maintaining a single-transactional physical channel to avoid a cost trap which extensive moves towards digitalization of transactions might mean for them. In such circumstances, refusing to adopt a digital value proposition may be a means of preserving the success of their original business model.
Originality/value
Despite the weight of academic and practitioner discourses on the urge to undertake digital transformation, this work provides a comprehensive illustration of the rationale for sticking to a single physical channel to preserve the profitability of a traditional store-based business model.
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Christopher Newman, David Gligor and Yoon-Na Cho
The authors explored the impact of a popular supply chain collaboration initiative – the shopper solution – on both retailers and manufacturers, as well as on the shopper.
Abstract
Purpose
The authors explored the impact of a popular supply chain collaboration initiative – the shopper solution – on both retailers and manufacturers, as well as on the shopper.
Design/methodology/approach
The authors conducted a quasi-experimental field study, an experimental online study and an experimental behavioral lab study.
Findings
Overall, results revealed that shopper solutions increase the quantity and breadth of displayed products sold, along with sales totals. Shoppers also expressed higher willingness-to-pay (WTP) for products displayed in solutions. Shoppers positively (negatively) attributed the presence (absence) of solutions more strongly to retailers than to manufacturers due to perceived differences in manufacturers' concern for shoppers. Specifically, shoppers expressed higher (lower) word-of-mouth (WOM) and loyalty intentions toward retailers than manufacturers when solutions were (not) provided.
Originality/value
The authors provide a more holistic view of supply chain collaboration by showing how different chain members (retailers vs manufacturers) can experience disparate benefits from collaboration. The authors explain this within the context of shopper solutions by demonstrating that differences in perceived concern for shoppers underlies these effects. Thus, findings suggest that shopper marketing initiatives, such as solutions, are not always “win-win-win” outcomes for retailers, manufacturers and shoppers as intended. Overall, this is the first research to assess the implications of shopper solutions for retailers, manufacturers and shoppers, alike.
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Hai Le and Phuong Nguyen
This study examines the importance of exchange rate and credit growth fluctuations when designing monetary policy in Thailand. To this end, the authors construct a small open…
Abstract
Purpose
This study examines the importance of exchange rate and credit growth fluctuations when designing monetary policy in Thailand. To this end, the authors construct a small open economy New Keynesian dynamic stochastic general equilibrium (DSGE) model. The model encompasses several essential characteristics, including incomplete financial markets, incomplete exchange rate pass-through, deviations from the law of one price and a banking sector. The authors consider generalized Taylor rules, in which policymakers adjust policy rates in response to output, inflation, credit growth and exchange rate fluctuations. The marginal likelihoods are then employed to investigate whether the central bank responds to fluctuations in the exchange rate and credit growth.
Design/methodology/approach
This study constructs a small open economy DSGE model and then estimates the model using Bayesian methods.
Findings
The authors demonstrate that the monetary authority does target exchange rates, whereas there is no evidence in favor of incorporating credit growth into the policy rules. These findings survive various robustness checks. Furthermore, the authors demonstrate that domestic shocks contribute significantly to domestic business cycles. Although the terms of trade shock plays a minor role in business cycles, it explains the most significant proportion of exchange rate fluctuations, followed by the country risk premium shock.
Originality/value
This study is the first attempt at exploring the relevance of exchange rate and credit growth fluctuations when designing monetary policy in Thailand.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Digitalization has provided retailers with the option to expand operations to secure revenue from new channels. However, such firms must balance these additional opportunities against increases in costs and complexity to determine whether their business model should be based on a single or multichannel approach.
Originality/value
The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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The purpose of this paper is to investigate the opaque inventory information disclosure strategy for an online retailer who sells two substitutable products to customers in two…
Abstract
Purpose
The purpose of this paper is to investigate the opaque inventory information disclosure strategy for an online retailer who sells two substitutable products to customers in two selling periods.
Design/methodology/approach
The authors develop a two-period model where an online retailer sells two substitute products with two inventory composition structures to maximize profits. The authors investigate the optimal inventory disclosure decision from both ex post and ex ante perspectives. Sensitivity analysis is performed to investigate the effects that discount rate, transaction cost and the probability of agreeable inventory situation have on the equilibrium disclosure outcome. The authors also consider risk-averse customers and horizontally differentiated products to highlight the robustness of our results.
Findings
The authors find that the online retailer will choose the opaque information disclosure when attempting to increase revenue and reduce the mismatch of supply and demand in both ex post and ex ante inventory information conditions. Comparing with ex post disclosure strategies, ex ante opaque disclosure is optimal in a larger price region, and the total revenues gap between opaque disclosure and complete disclosure gradually increase as discount rate, transaction cost or the probability of agreeable inventory situation decreases. Furthermore, strategic customers may tend to be risk neutral when faced with opaque inventory information in a two-period sales setting.
Originality/value
This current paper is the first paper to study the online retailer's inventory information disclosure strategy in two selling periods. Moreover, this paper presents the conditions under which the online retailer should share complete or opaque inventory information with customers to maximize the online retailer's total revenues.
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Insik Jeong, Ruey-Jer Bryan Jean, Daekwan Kim and Saeed Samiee
Disruptive external forces can bring businesses to a standstill and make their strategic plans obsolete overnight. COVID-19 exemplifies such a disruptive force, which has caused…
Abstract
Purpose
Disruptive external forces can bring businesses to a standstill and make their strategic plans obsolete overnight. COVID-19 exemplifies such a disruptive force, which has caused worldwide havoc and ongoing disruption in many sectors of the economy, while concurrently providing great opportunities for others. The goal in this study is to examine the experiences of firms that have been impacted by a prior disruptive force, offer five theoretical lenses for framing and examining such events, and provide a set of axioms based on the research findings.
Design/methodology/approach
The authors used a qualitative approach involving five short international marketing case studies of firms based in South Korea and Taiwan. These nations and firms were selected on the bases of their overall judicious navigation of the conditions presented by the COVID-19 pandemic. The authors gathered information about these firms through primary sources of information (personal and remote interviews as well as other communications), which the authors augmented with information from secondary sources.
Findings
The results indicate that external forces can bring both opportunities and threats to firms' international marketing strategies. The authors found that two strategies help firms cope with managerial issues associated with both the demand and the supply sides in successful firms in these nations: (1) leveraging opportunities presented by the pandemic through the successive introductions of new product and (2) the expansion of both the domestic and international markets.
Research implications
The research provides five theoretical lenses to articulate the impact of disruptive external forces on international marketing strategies.
Practical implications
The research offers thirteen demand and supply side axioms for marketing managers involved in international business (e.g. exporters, importers, MNCs) to cope with disruptive external forces, like COVID-19.
Social implications
Disruptive external forces, such as the pandemic, have enormous impact on firms and consumers alike. This research aims to limit the negative impact of future disruptions by engaging in contingency planning and added resilience, through which firms may continue to function and, to a large extent, consumers are able to acquire the necessary goods and services to maintain their quality of life.
Originality/value
The authors attribute the quicker response of these firms to their agility in managing the market impacts related to COVID-19 and to their prior conditioning in their respective geopolitical spheres. The authors summarize the findings in a set of nine supply side and a set of four demand side axioms.
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The purpose of this study is to assess the presence of deceptive advertising practices in wine retailers’ e-mails and, if identified, to analyze the extent and content of these…
Abstract
Purpose
The purpose of this study is to assess the presence of deceptive advertising practices in wine retailers’ e-mails and, if identified, to analyze the extent and content of these deceptive advertisements.
Design/methodology/approach
The study follows an observational research design to examine the accuracy of two claims that were made in 258 marketing e-mails from two major wine retailers in New Jersey, USA: (1) that all wines have 90+ scores; and (2) that these wines are offered at a deeply discounted price.
Findings
The study found that only 3.9% of cases accurately supported both major claims made: the wines having 90+ scores and being offered at a discounted price. Both claims were inaccurate in 64.7% of cases. Nearly half (49.3%) of the advertised wines had concealed critic’s scores below 90 points. Recipients were told they could save 37.2% by purchasing from the advertising retailer, but they could have actually saved 12.7% more by buying the wines elsewhere.
Research limitations/implications
The study’s limitations include the small sample size. Variations between different wine retailers and their advertising practices require further investigation.
Practical implications
Advertised discounts and scores may be inaccurate or incomplete, causing consumer confusion and disappointment, erosion of wine advertisements’ as well as wine retailers’ and wine experts’ credibility.
Social implications
Deceptive advertising can erode consumer trust and lead to unfair practices. Consumers may make purchasing decisions based on misleading information. Deceptive practices create an uneven playing field, giving businesses that engage in them an unfair advantage, hindering market transparency and ethical businesses. Policymakers should develop regulations to protect consumers and ensure fair competition.
Originality/value
An investigation of deceptive advertising practices in the wine industry has not been done before. This exploratory study contributes to consumer awareness and highlights the importance of truthful and transparent marketing practices.
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Tobias Winkler, Manuel Ostermeier and Alexander Hübner
Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or…
Abstract
Purpose
Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or donations). These options reduce waste after a surplus has emerged but do not prevent an emerging surplus in the first place. This paper aims to reveal how retailers can proactively prevent waste along the SC and why the options identified are impactful but, at the same time, often complex to implement.
Design/methodology/approach
The authors follow an exploratory approach for a nascent topic to obtain insights into measures taken in practice. Interviews with experts from retail build the main data source.
Findings
The authors identify and analyze 21 inbound, warehousing, distribution and store-related options applied in grocery retail. Despite the expected high overall impact on waste, prevention measures in inbound logistics and distribution and warehousing have not been intensively applied to date.
Practical implications
The authors provide a structured approach to mitigate waste within retailers' operations and categorize the types of barriers that need to be addressed.
Originality/value
This research provides a better understanding of prevention options in retail operations, which has not yet been empirically explored. Furthermore, this study conceptualizes prevention and reduction options and reveals implementation patterns.
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Siddharth Harshkant Bhatt and Dinesh Ramdas Pai
“Buy X Get X Free” promotions are popular across retail settings. Retailers promote a variety of products using this promotional frame. However, past research contains mixed…
Abstract
Purpose
“Buy X Get X Free” promotions are popular across retail settings. Retailers promote a variety of products using this promotional frame. However, past research contains mixed findings about the effectiveness of this promotion compared to the straightforward discount on a single unit of a product. The goal of this research is to employ a theoretical lens to examine the effectiveness of “Buy X Get X Free” promotions.
Design/methodology/approach
The theoretical framework was tested in two experiments using different products and samples. The data collected from each experiment were analyzed using both descriptive and inferential techniques to assess support for the theoretical arguments.
Findings
Findings reveal that at identical levels of per-unit discount, the “Buy X Get X Free” promotion is perceived less favorably by consumers than a straightforward single-unit discount. Consumers perceive lower transaction value and acquisition value and, thereby, a lower purchase intention, from the “Buy X Get X Free” promotion compared to a single-unit discount.
Practical implications
This research was conducted keeping in mind the popularity of the “Buy X Get X Free” promotion in the real world. The findings caution retailers against indiscriminately using this promotional frame.
Originality/value
Using a theoretical lens, this research proposes and validates a framework to systematically examine consumers' perceptions of the two popular discount frames. The proposed theoretical framework provides a richer understanding of the underlying consumer psychology that drives the evaluation of these promotions. Further, primary data from lab experiments validates the framework. The research also helps advance the understanding of consumer evaluation of sales promotions in general.
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As an important form of the e-commerce industry, online group buying is under the spotlight from with two sides: cheaper price but longer waiting time. The purpose of this paper…
Abstract
Purpose
As an important form of the e-commerce industry, online group buying is under the spotlight from with two sides: cheaper price but longer waiting time. The purpose of this paper is to adequately investigate the interaction between saving and waiting time of group buying comprehensively.
Design/methodology/approach
To fill the research gap, the authors elaborate a dual-channel supply chain (SC) with regular retail (individual buying) and group-buying channel, and formulate the demand based on the consumer utility with the positive effect of saving money and the negative effect of wasting time.
Findings
The authors find that power structure only changes the optimal prices, instead of the waiting time. The selling price mainly influences consumer demands, instead of the price discount of group buying. The SC profits are only positive to the channel preference, and it is the decisive parameter of consumers' choice. The price sensitivity lays a more remarkable impact on the SC compared to the time sensitivity. Above all, the price is the main factor of group buying, instead of time.
Originality/value
These results underscore the improvement for the dual-channel SC of group buying, providing managerial insights for the group-buying industry.
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