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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: 5 February 2024

Yong Liu, Chang-Xue Lin and Gang Zhao

The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on…

Abstract

Purpose

The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism.

Design/methodology/approach

To deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism.

Findings

The results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee.

Originality/value

The proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.

Details

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

Keywords

Article
Publication date: 25 September 2023

R.S. Sreerag and Prasanna Venkatesan Shanmugam

The choice of a sales channel for fresh vegetables is an important decision a farmer can make. Typically, the farmers rely on their personal experience in directing the produce to…

Abstract

Purpose

The choice of a sales channel for fresh vegetables is an important decision a farmer can make. Typically, the farmers rely on their personal experience in directing the produce to a sales channel. This study examines how sales forecasting of fresh vegetables along multiple channels enables marginal and small-scale farmers to maximize their revenue by proportionately allocating the produce considering their short shelf life.

Design/methodology/approach

Machine learning models, namely long short-term memory (LSTM), convolution neural network (CNN) and traditional methods such as autoregressive integrated moving average (ARIMA) and weighted moving average (WMA) are developed and tested for demand forecasting of vegetables through three different channels, namely direct (Jaivasree), regulated (World market) and cooperative (Horticorp).

Findings

The results show that machine learning methods (LSTM/CNN) provide better forecasts for regulated (World market) and cooperative (Horticorp) channels, while traditional moving average yields a better result for direct (Jaivasree) channel where the sales volume is less as compared to the remaining two channels.

Research limitations/implications

The price of vegetables is not considered as the government sets the base price for the vegetables.

Originality/value

The existing literature lacks models and approaches to predict the sales of fresh vegetables for marginal and small-scale farmers of developing economies like India. In this research, the authors forecast the sales of commonly used fresh vegetables for small-scale farmers of Kerala in India based on a set of 130 weekly time series data obtained from the Kerala Horticorp.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 22 February 2024

Zhang GuoWei

The results indicate that land prices exert pressure on retail performance (RP) and that the enhancement of digital means has a positive effect on RP. Additionally, digital…

Abstract

Purpose

The results indicate that land prices exert pressure on retail performance (RP) and that the enhancement of digital means has a positive effect on RP. Additionally, digital instruments (DI) play a significant moderating role in the relationship between land prices and RP.

Design/methodology/approach

This paper empirically examines the impact of land prices on RP using panel data from 239 Chinese cities between 2011 and 2022.

Findings

The use of lagged land prices as instrumental variables effectively alleviates endogeneity issues. Both two-stage least squares (2SLS) and generalized method of moments (GMM) regression results suggest that higher land prices are associated with improved RP. Further analysis reveals that the increase in land prices leads to scale effects, structural effects and technological effects, contributing to the enhancement of RP. The impact of land prices on RP becomes more pronounced in larger cities and economically developed regions experience the pressure from land prices earlier.

Originality/value

The findings of this study have practical implications for discussions on retail industry development, site selection for retail businesses and the establishment of sustainable mechanisms for expanding domestic demand.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 11 May 2023

Thamaraiselvan Natarajan and Deepak Ramanan Veera Raghavan

The post-purchase behavioral responses of omnichannel shoppers, who mainly rely on physical stores (acknowledged as a crucial channel in providing a seamless shopping experience…

Abstract

Purpose

The 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/approach

The 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.

Findings

The 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/implications

The 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/value

This 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.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 30 December 2023

Baoru Ge and Yun Xue

Based on Kansei Engineering, this study obtained consumers' emotional preferences aiming to enhance the emotional connection between consumers and clothing to extend the service…

Abstract

Purpose

Based on Kansei Engineering, this study obtained consumers' emotional preferences aiming to enhance the emotional connection between consumers and clothing to extend the service life of clothing and realize sustainable clothing design.

Design/methodology/approach

Six Kansei word pairs that are the most important to consumers were identified through literature reviews, magazines, websites, card sorting of consumers and cluster analysis. Finally, the consumers scored the 32 product specimens through a 5-level rating semantic differential scale questionnaire of six Kansei word pairs. The researchers verified the consumers' emotional preferences through principal component analysis and established the relationship between Kansei words and design elements of color through partial least squares.

Findings

The study found consumers' emotional preferences: elegant, minimalist, formal, casual, mature, practical and distinctive style. Besides white, black, gray, blue, consumers will also like red and yellow-red in the future. The crucial findings of this study are to get recommended guidelines that consumers' emotional preferences match the corresponding design elements.

Originality/value

The study's findings can be used to style the design of men's plain-color shirts and guide online marketers and designers to design apparel that meets consumers' emotional needs to develop consumers' sustainability reliance on clothing. This study also explains the overall process and methodology for integrating consumer preferences and product design elements.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 16 April 2024

Huifeng Bai, Jin Shi, Peng Song, Julie McColl, Christopher Moore and Ian Fillis

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Abstract

Purpose

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Design/methodology/approach

Through case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.

Findings

Strong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.

Research limitations/implications

The results are potentially challenged by relatively small sample size.

Practical implications

Practitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.

Originality/value

This paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 26 September 2023

Philip Tin Yun Lee, Aki Pui Yi Hui, Richard Wing Cheung Lui and Michael Chau

This paper aims to examine why retail firms seldom achieve full integration of online and offline channels as prescribed in omni-channel literature. It examines the intermediate…

Abstract

Purpose

This paper aims to examine why retail firms seldom achieve full integration of online and offline channels as prescribed in omni-channel literature. It examines the intermediate process of channel integration from an internal, operational perspective.

Design/methodology/approach

This study is composed of two parts. In the first part, the authors interviewed informants from nine firms that were engaged in channel integration. In the second part, the authors conducted case studies with three firms from the cosmetics and skincare industry against the backdrop of the COVID-19 pandemic to find evidence to support or negate the propositions made in the first part.

Findings

The first part identified six operational challenges to channel integration. The authors categorized these challenges into two groups: inter-channel communication and inter-channel competition. Inter-channel competition carries more weight at the latter stage of integration. The authors also identified two antecedents that affect the seriousness of these challenges: heterogeneity among channels in business operation and external competitive pressure. In the second part, the authors found that both inter-channel communication and inter-channel competition were improved because of the external competitive pressure exerted by the COVID-19 pandemic. However, the heterogeneity of offline channels against online channels in business operation is a double-edged sword.

Originality/value

The study identifies the changing effects of the challenges of channel integration and their antecedents in the midst of integration. The positive influence of a specific dimension of channel heterogeneity against other channels increases and then decreases along channel integration. The identification of the changing effects lays the foundation for a finer stage model of channel integration.

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 22 November 2023

Chen-hao Wang, Yong Liu and Zi-yi Pan

The paper attempts to discuss the impact of reference price effect on pricing decisions.

Abstract

Purpose

The paper attempts to discuss the impact of reference price effect on pricing decisions.

Design/methodology/approach

With the growth of the Internet and e-commerce, more and more customers purchase products in through online channels and choose products by comparing different prices and services, and the reference price effect has an impact on pricing decisions. To investigate the impact of consumers' reference price effect on the dual-channel supply chain, the authors establish a basic model consisting of a single dominant manufacturer and a single downstream retailer, and analyze the optional decisions under different situations and discuss the influence of reference price effect. Finally, a number case verifies the validity and rationality of the proposed model.

Findings

The results show that (1) the reference price effect has varying effects on the price, channel demand and income of manufacturers and retailers in the channel depending on the role of customers' channel preferences. (2) The manufacturer's online channel demand and profits always increase with the reference pricing effect, whereas the retailer's offline demand and profits always decline. (3) When the proportion of consumers preferring offline is higher, the manufacturer's network price and wholesale price increase with the reference price effect, while the retailer's retail price decreases with the reference price effect; when the proportion of consumers preferring offline is lower, the opposite is true, and the centralized decision results are consistent with the decentralized decision results.

Practical implications

This paper can clarify the impact of consumer reference price effects on the operation of dual-channel supply chains, and help inform pricing decisions of manufacturers and retailers in dual-channel supply chains.

Originality/value

The proposed approach can well analyze the impact of consumer reference price effect and give channel their optional decisions.

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: 4 July 2023

Ehsan Aghakarimi, Hamed Karimi, Amir Aghsami and Fariborz Jolai

Considering the direct impact of retailers' performance on the economy, this paper aimed to propose a comprehensive framework to evaluate the performance of different branches of…

Abstract

Purpose

Considering the direct impact of retailers' performance on the economy, this paper aimed to propose a comprehensive framework to evaluate the performance of different branches of a retailer.

Design/methodology/approach

Through a case study, the weights of indicators were calculated by the best-worst method (BWM) and the branches' performance was appraised using data envelopment analysis (DEA).

Findings

The branches were ranked in terms of performance, and sensitivity analysis and statistical tests were conducted to realize the weaknesses and strengths of the branches. Then, some strategies were proposed using strengths, weaknesses, opportunities and threats (SWOT) analysis to improve the performance of the weak branches.

Originality/value

This paper contributes to previous studies on the evaluation of retailers' performance by proposing a triple framework based on resilience, sustainability and sales-marketing indicators. This paper focused on branches' operations and branches' optimization by improving performance in terms of these three indicators. This paper also offers a qualitative and quantitative analysis of retailers' performance, which has received less attention in previous studies.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

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