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Article
Publication date: 17 August 2012

Davide Luzzini, Federico Caniato, Stefano Ronchi and Gianluca Spina

The purpose of this paper is to propose a theoretically sound and empirically tested classification system composed of purchasing strategic categories as a basis for purchasing…

4181

Abstract

Purpose

The purpose of this paper is to propose a theoretically sound and empirically tested classification system composed of purchasing strategic categories as a basis for purchasing portfolio models.

Design/methodology/approach

An international, cross‐industry survey has been designed to assess the characteristics and corresponding strategies of the purchasing categories.

Findings

The paper operationalises the constructs derived from previous scientific contributions related to purchasing portfolio management and transaction cost economics (TCE) to empirically test the purchasing portfolio. In total, four different types of strategic categories have been identified, and distinctive competitive priorities have been found.

Research limitations/implications

Managers might be able to identify different types of purchasing strategic categories, whose characteristics drive specific purchasing strategies. Longitudinal data and more extensive tests of the characteristics of each category might contribute to improving the proposed research framework.

Originality/value

The research overcomes some of the classical limits of purchasing portfolio models, including the absence of a theoretical and empirical basis. In particular, TCE is used to support and expand traditional purchasing portfolio approaches, and a broad empirical base is used to test such an approach.

Details

International Journal of Operations & Production Management, vol. 32 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 January 2016

Mandar Dabhilkar, Lars Bengtsson and Nicolette Lakemond

The purpose of this paper is to use the relative power and total interdependence concepts as an intervening theoretical lens to explain why and how sustainable supply management…

4684

Abstract

Purpose

The purpose of this paper is to use the relative power and total interdependence concepts as an intervening theoretical lens to explain why and how sustainable supply management (SSM) initiatives by manufacturing firms differ across the Kraljic matrix according to purchasing capability.

Design/methodology/approach

Tested hypotheses by subjecting survey data from 338 manufacturers on buyer-supplier relationships in Europe and North America to regression analysis.

Findings

Shows three situations where relative power and total interdependence determine the effectiveness of purchasing capabilities. First, sustainability programs impact supplier compliance in all Kraljic categories but bottleneck items. Second, there are significant trade-offs between lower cost and higher social and environmental supplier compliance for noncritical components. Third, strategic alignment of sustainability objectives between corporate and supply function levels only leads to improved financial performance for strategic components.

Research limitations/implications

Further research could take power and dependence into account to explain when and how purchasing capabilities focussed on sustainability can be achieved.

Practical implications

Shows how supply strategists could devise-tailored approaches for different purchasing categories with respect to power and dependence when pursuing economic, social and environmental objectives in combination – the triple bottom line – along their supply chains.

Originality/value

Illustrates and provides a theoretical explanation for why SSM is a purchasing capability that must vary across purchasing categories defined by different situations of power and dependence.

Details

International Journal of Operations & Production Management, vol. 36 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 9 October 2009

Mark S. Glynn and Shaoshan Chen

The purpose of this paper is to examine the category‐level differences of both risk perception and brand loyalty effects on consumer proneness towards buying private label brands…

6589

Abstract

Purpose

The purpose of this paper is to examine the category‐level differences of both risk perception and brand loyalty effects on consumer proneness towards buying private label brands (PLBs).

Design/methodology/approach

This paper extends the work of Batra and Sinha by also examining the PLB effects of brand loyalty and price‐quality by product category using a mall‐intercept survey.

Findings

The results indicate that quality variability, price consciousness, price‐quality association and brand loyalty influence consumer proneness to buy PLBs. In addition, income, education and household size are moderators of PLB purchasing.

Research limitations/implications

This research confirms the importance of price consciousness and quality variability on PLB purchasing. The importance of these determinants depends on both the product category and the PLB market share within the category.

Practical implications

Retailers and manufacturers need to consider the effects of PLB in relation to the product category. For retailers, the value of a PLB is less relevant in some categories but appealing to the price conscious consumer is important. Manufacturers should note in some categories that brand loyalty is important but not as much as price consciousness. Customer income is still an important determinant of PLB purchasing.

Originality/value

The paper shows that it is important to consider product category differences which make it more difficult to generalize about PLB purchasing.

Details

International Journal of Retail & Distribution Management, vol. 37 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 14 June 2013

Katri Kauppi, Alistair Brandon‐Jones, Stefano Ronchi and Erik M. van Raaij

The paper examines the moderating role of a purchasing function's absorptive capacity (AC) on the relationship between the use of electronic purchasing tools and category level…

2144

Abstract

Purpose

The paper examines the moderating role of a purchasing function's absorptive capacity (AC) on the relationship between the use of electronic purchasing tools and category level purchasing performance. The authors argue that an e‐purchasing tool may not in itself positively influence performance unless combined with AC as a human interface to maximise its information and transactional improvement potential.

Design/methodology/approach

Survey data collected from 297 procurement executives of large companies in ten countries are analysed using confirmatory factor analysis (CFA) and hierarchical moderated regression.

Findings

The results demonstrate few significant direct effects of e‐purchasing tools on category performance. All performance measures studied are enhanced when dimensions of AC and their interactions with the e‐purchasing tools are added. Specifically, buyer competence, manager competence and communications climate have performance‐enhancing effects. In some cases, AC on its own appears to increase performance more than e‐tools.

Originality/value

This paper is the first to study the moderating effects of AC on the relationship between e‐purchasing tool usage and category performance. Its findings support the view that simply implementing technology does not lead to performance improvements, but that a human interface is required to maximise the information and transactional improvement potential of e‐purchasing tools.

Details

International Journal of Operations & Production Management, vol. 33 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 8 May 2017

Laurence Carsana and Alain Jolibert

The purpose of this research is to investigate the influence of self-purchasing versus gift-giving situations on the importance of product cues and the moderating effect of brand…

1250

Abstract

Purpose

The purpose of this research is to investigate the influence of self-purchasing versus gift-giving situations on the importance of product cues and the moderating effect of brand schematicity.

Design/methodology/approach

Data were collected via an online survey of 285 French consumers for wine and 139 French consumers for whisky. The interaction effect of the gift-giving situation and brand schematicity on the importance of product cues was then investigated.

Findings

The results differed, depending on the importance of brand cue. For the whisky category (high brand importance), brand schematicity had no influence on the importance of cues. For the wine category (low brand importance), brand schematicity moderated the influence of the gift-giving situation on the importance of extrinsic cues such as commercial brand. Brand schematicity and the situation of gift-giving also influence the number of important cues which consumers take into account when making their choice. In low-involvement purchasing situations, brand-aschematic consumers use fewer choice criteria than brand-schematic consumers, whereas in high-involvement purchasing situations, regardless of their level of brand schematicity, consumers use the same number of criteria to make their selection.

Practical implications

When the commercial brand is a salient cue and regardless of the purchasing situation, it is important to provide information on the brand to consumers through any format, such as social media, leaflets, flash codes, in-store digital display, etc. When the commercial brand is not a salient cue, brand schematicity may be relevant to a segment of consumers because this consumer profile may need more information and will focus on the commercial brand. Brand managers could develop a specific approach to schematic consumers based on brand content, for example, brand managers could provide marketing materials (e.g. leaflets, flash codes, mobile apps) to retail store managers explaining the origin and value of the commercial brand. Consumers could also be provided with digital devices (such as tablets), which they could use to search for information according to these cues before choosing their product. Social media and online brand community could also provide more details about the brand and may provide an interactive area for discussions with consumers.

Originality/value

There has been little research on the effect of brand schematicity on the importance of product cues. To the authors’ knowledge, the interaction between brand schematicity and purchase according to product category has not previously been studied. The influence of brand schematicity changes depending on the importance given to brand cues.

Details

Journal of Consumer Marketing, vol. 34 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 8 July 2022

Philip Mecredy, Malcolm Wright, Pamela Feetham and Philip Stern

Previous research on age-related loyalty is sparse, contradictory and suffers from methodological limitations and criticisms. This study aims to apply two methodological advances…

Abstract

Purpose

Previous research on age-related loyalty is sparse, contradictory and suffers from methodological limitations and criticisms. This study aims to apply two methodological advances to fresh purchasing data to give a much clearer picture of age-related differences in brand loyalty.

Design/methodology/approach

An online brand choice survey (n = 1,862) is used to examine age-related loyalty within three low-involvement categories in New Zealand. The polarisation index (φ) is adopted as the measure of loyalty to control for confounding influences present in prior research. Results for chronological age are validated through comparison with results for measures of cognitive, biological and sociological age, as well as household life cycle.

Findings

Contrary to prior research, age-related differences in loyalty are detected in two of the three low-involvement categories studied. The third category does not show detectable loyalty for any age group. Although differences in brand loyalty are broadly present across all age measures, no alternative measure outperforms chronological age in detecting variations in age-related loyalty.

Research limitations/implications

To the best of the authors’ knowledge, this is the first evidence that age-related brand loyalty is present in low-involvement categories. However, effects are small and easily obscured by confounding factors. More research is needed to determine how results vary by category.

Practical implications

Despite showing minor differences in loyalty, older consumers still purchase from a wide portfolio of brands and so should not be ignored by marketers. Future research can investigate loyalty for older consumers by adopting the method of analysing differences in polarisation (φ) for chronological age groups.

Originality/value

Previous contradictory findings and methodological concerns about measurement of age-related loyalty are resolved through use of the polarisation index (φ) as a measure of loyalty and by confirmation that chronological age performs as well as any other age measure.

Details

European Journal of Marketing, vol. 56 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 7 June 2019

Damien Wilson and Maxwell Winchester

This study aims to understand the market structure and explore the applicability of recognised generalisations to a European wine retail market. The study considers whether brands…

Abstract

Purpose

This study aims to understand the market structure and explore the applicability of recognised generalisations to a European wine retail market. The study considers whether brands in European wine retailing follow the established double jeopardy and duplication of purchase laws, with the aim of investigating their limits so as to identify where market partitions are evident.

Design/methodology/approach

The researchers conducted a cross-purchasing analysis within the wine category over a 12-month period, using a customer panel of n = 25,000 across a chain of independent retail stores in an English-speaking European country. Analysis was conducted across purchases of the top 20 wine brands.

Findings

Consumer wine repurchase results confirmed a double jeopardy pattern. These consumers’ wine repurchasing behaviour from other top-20 wine brands could have generally been predicted in line with the duplication of purchase law. However, a small number of exceptions to these patterns were identified, suggesting the existence of market partitions.

Research limitations/implications

In this study, market partitions were evident for selected brands, a wine region and a common grape variety, Sauvignon blanc. Such exceptions illustrate that consumer purchase patterns can deviate from predictions, for a small number of brands in a consumer goods category than would be expected given duplication of purchase law norms. Such anomalies to empirical generalisations help demonstrate boundary conditions and lead further research on the market conditions required for such anomalies to be evident. Implications suggest that further research should be conducted on the product features creating market partitions.

Practical implications

The findings suggest that regional wines can appeal to a more clearly partitioned customer group within the clientele, but that substitution is noted among brands within regions.

Originality/value

To the best of the authors’ knowledge, this is the first study to use a large sample consumer database to determine the generalisability of two well-established empirical generalisations: the double jeopardy and duplication of purchase laws, to the wine retail market. Knowing these are applicable to the wine retail markets allows wine producers and retailers to predict expected repurchase and cross-purchasing norms.

Article
Publication date: 27 September 2011

Carrie Heilman, Kyryl Lakishyk and Sonja Radas

This paper aims to investigate the impact of in‐store sample promotions of food products on consumer trial and purchasing behavior. The authors investigate differences in the…

4826

Abstract

Purpose

This paper aims to investigate the impact of in‐store sample promotions of food products on consumer trial and purchasing behavior. The authors investigate differences in the trial rate for free samples across different products and consumer types, as well as the impact of sampling on product and category purchase incidence. The results of this study are relevant for retailers and manufacturers who invest in in‐store free sample promotions.

Design/methodology/approach

The authors use data from a field study, which leveraged an actual free‐sample program implemented by a US grocery store chain. Data was collected on six different products promoted by in‐store free samples over six different weekends. The data collected included consumers' trial and purchasing behavior with respect to the free sample, as well as their attitudes towards the free sample that day and free sample promotions in general.

Findings

Free sampling is very effective in inducing trial, especially among lower educated consumers. For consumers who are planning to buy the product in the promoted category, free sampling can encourage switching from the planned to the promoted brand. For consumers who do not have such previous plans, free sampling can “draw“ them into the category and encourage category purchase. Samplers' interactions with the person distributing the sample or with other samplers at the scene also seem to boost post‐sample purchase incidence.

Originality/value

Despite the importance of free samples as a promotional tool, few studies have examined consumer trial and purchasing behavior with respect to in‐store free samples. This paper presents one of the first known field studies that examines this topic.

Details

British Food Journal, vol. 113 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 6 February 2017

Madeleine Pullman and Robin Wikoff

This purpose of this paper is to understand the environmental impacts of stakeholder-driven sustainable purchasing policies in institutional settings.

3036

Abstract

Purpose

This purpose of this paper is to understand the environmental impacts of stakeholder-driven sustainable purchasing policies in institutional settings.

Design/methodology/approach

The research is framed using stakeholder and life cycle assessment (LCA) theories. The study uses a multi-method approach. Starting with interviews to understand the breadth of sustainability issues and significant food purchases facing institutional purchasing managers, the authors subsequently perform LCA of these various policies using the most popular food item in different categories.

Findings

From the interview results, the authors found that food purchasers focus predominately on cost, thus, are committed to food and packaging reduction. They are driven to buy local foods based on their consumer stakeholders but share their commitment to buying local products if the cost is appropriate. In the LCA of popular food items in multiple scenarios, avoiding food waste of various forms had significantly higher carbon emissions savings than packaging reduction or transportation minimizing (buy local) strategies.

Research limitations/implications

The sample relied solely on the perceptions of institutional purchasing managers in university dining services. Future research should involve collecting data from other stakeholder groups such as the customers themselves, institutional leaders, and in other types of institutional settings such as hospitals and government agencies.

Practical implications

The research provides managers with insights concerning the trade-offs between different sustainability objectives. In particular, findings show that reducing waste related animal protein has a bigger impact on environmental performance than many other popular sustainability objectives such as buying local or reducing packaging waste.

Social implications

The paper focuses on the purchasing trade-offs of buying local vs national food products, different packaging solutions, and food waste generation. These decisions offer some social benefits (improve the economic situation for local farms vs consolidated food producers) as well as multiple environmental benefits.

Originality/value

The paper presents new findings on the sustainability purchasing priorities of stakeholders in institutional food settings and subsequent LCA of those policies to show which might have the most environmental impact.

Details

International Journal of Operations & Production Management, vol. 37 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 26 September 2023

Damien Wilson, Maxwell Winchester and Michael S. Visser

This study aims to understand the degree of predictability and value in analyzing consumer purchase patterns in the US wine retail market. The study considers whether brands in US…

Abstract

Purpose

This study aims to understand the degree of predictability and value in analyzing consumer purchase patterns in the US wine retail market. The study considers whether brands in US wine retailing follow the well-established Duplication of Purchase Law and Double Jeopardy Law.

Design/methodology/approach

Over 20,000 customer panel wine purchases were analyzed from a number of locations within a supermarket chain based on the West Coast of the USA. Cross-purchasing behavior for the top 20 wine brands by market penetration was analyzed to assess whether the well-established Duplication of Purchase Law and Double Jeopardy Law hold up in this wine retail setting in the USA. The degree of predictability and the existence of anomalies in expected cross-purchasing behavior were identified in the analysis.

Findings

Results confirmed a Double Jeopardy pattern and that wine cross-purchasing patterns for the most part followed the Duplication of Purchase Law. However, exceptions to these patterns were found, which indicated areas in need of managerial attention due to the potential to remedy, develop or monitor the most prominent variations between predicted and realized cross-purchasing behavior. Repeated identification of variations has been identified in other product categories, known as market partitions.

Originality/value

Although it is commonly believed that wine is a unique product category, the results of this study demonstrate that consumer behavior toward wine is similar to other fast-moving consumer goods. The exceptions suggest that while similar consumer purchase patterns are evident, consumers are more likely to cross purchase wine brands and grape types more than would be expected given Duplication of Purchase Law benchmarks.

Details

International Journal of Wine Business Research, vol. 35 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

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