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Open Access
Article
Publication date: 21 August 2024

Lukas Jürgensmeier, Jan Bischoff and Bernd Skiera

Large digital platforms face intense scrutiny over self-preferencing, which involves a platform provider favoring its own offers over those of competitors. In online marketplaces…

Abstract

Purpose

Large digital platforms face intense scrutiny over self-preferencing, which involves a platform provider favoring its own offers over those of competitors. In online marketplaces, also called retail or e-commerce platforms, much of the academic and regulatory debate focuses on determining whether the marketplace provider gives preference to its own private labels, such as “Amazon Basics” or Walmart’s “Great Value” products. However, we outline, both conceptually and empirically, that self-preferencing can also occur through other dimensions of vertical integration – namely, retailing and fulfillment.

Design/methodology/approach

This article contributes by conceptualizing three dimensions of vertical integration in online marketplaces – private labels, retailing and fulfillment. Then, two studies empirically assess (1) which of the 20 most-visited global online marketplaces vertically integrates which dimension and (2) which share of 600 m available offers is vertically integrated to which degree in eleven international Amazon marketplaces.

Findings

The majority of the leading marketplaces vertically integrate all three dimensions, implying ample opportunities for self-preferencing. Across international Amazon marketplaces, only 0.02% of available offers consist of an Amazon private-label product. However, Amazon is a retailer for around 31% and fulfills around 38% of all available offers in its marketplaces. Hence, self-preferencing on Amazon can occur most frequently through retailing and fulfillment but comparatively infrequently through private-label offers. Still, these shares differ substantially by country – every second offer is vertically integrated in the USA, but only one in ten in India.

Originality/value

Most of the self-preferencing debate often focuses on private-label products. Instead, we present large-scale empirical results showing that self-preferencing on Amazon could occur most often through retailing and fulfillment because these channels affect much larger shares of offers. We also measure the variation of these shares across countries and relate them to regulatory environments.

Details

International Marketing Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 November 2000

Jonathan Reynolds

Offers a preliminary assessment of electronic commerce. Rarely has the retail and consumer services sector been faced with a strategic challenge of such significant complexity and…

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Abstract

Offers a preliminary assessment of electronic commerce. Rarely has the retail and consumer services sector been faced with a strategic challenge of such significant complexity and uncertainty that is growing so rapidly. Suggests that the academic world is lagging behind the world of practice in terms of supplying rigorous analysis of the topic. Deals with four discrete areas of the new economy as it affects retailers. Explores the extent to which the emergence of new electronic channels to market has led to distinctive means of business differentiation, with particular reference to branding and pricing. Secondly, looks at how business‐to‐business companies can use electronic channels to improve supply chain and productivity requirements. Thirdly, assesses how far we understand some of the organisational change issues. Finally considers the future of eCommerce.

Details

International Journal of Retail & Distribution Management, vol. 28 no. 10
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 June 2015

Mithu Bhattacharya

The purpose of this paper is to develop a research model that links Radio Frequency Identification (RFID) adoption issues with established technology adoption stages suggested by…

2307

Abstract

Purpose

The purpose of this paper is to develop a research model that links Radio Frequency Identification (RFID) adoption issues with established technology adoption stages suggested by Rogers theory of diffusion of innovation (DOI). The research model proposed in this study suggests that RFID adoption in retail industry progresses in different stages.

Design/methodology/approach

A mixed methodological perspective is used in this research. Key research issues were identified from a systematic content analysis of trade and academic articles in the first phase.

Findings

Data collected from Delphi study is used to test the propositions. It confirms key research issues associated with different adoption stages. Finally, it also confirms that the stages (knowledge, persuasion, design and decision, and implementation) influence RFID adoption decision.

Research limitations/implications

The propositions that are developed in the model can be used in future studies for further development. More relevant items should be added to measure each variable. It can also allow future researchers and practitioners to take a more comprehensive approach to look at RFID adoption process as a whole and thus focus on relevant issues across all adoption stages.

Practical implications

The research model can provide insights to practitioner to make more informed RFID adoption decisions.

Originality/value

Rogers stage model is very important for technology diffusion studies but is not explored much. There is limited research on understanding the overall RFID adoption process. This study is an attempt to bridge that gap and draw attention toward future research in that direction. The research model that is developed links RFID research with existing research in the area of DOI.

Details

Business Process Management Journal, vol. 21 no. 3
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 July 1989

John Fernie

Distribution has been a major element of retailers′ marketingstrategy in recent years as companies strive to control costs but at thesame time seek competitive advantage through…

Abstract

Distribution has been a major element of retailers′ marketing strategy in recent years as companies strive to control costs but at the same time seek competitive advantage through improving service to stores and gaining greater control of stock in the supply chain. In an interview survey of distribution directors from major multiple groups, all companies were reviewing their distribution strategy and many had made major changes to their distribution system. Centralisation of stock in strategically located RDCs and the use of third party contractors were main features of retail companies′ strategy. Contractors were much more aggressive in marketing their services to retailers than hitherto. This is partly related to the competitive and turbulent nature of the industry. In a survey of marketing directors/managers of distribution companies, it was clear that firms were trying to raise their profile in the market as they “went public” and/or because they were moving into new industry sectors away from their “core” specialist areas.

Details

International Journal of Physical Distribution & Materials Management, vol. 19 no. 7
Type: Research Article
ISSN: 0269-8218

Keywords

Article
Publication date: 1 March 2005

Constantine Bourlakis and Michael Bourlakis

To investigate the evolutionary process of the retail logistics network formation, and to propose a relationship framework between the logistics asset buyer (the retailer) and the…

5895

Abstract

Purpose

To investigate the evolutionary process of the retail logistics network formation, and to propose a relationship framework between the logistics asset buyer (the retailer) and the logistics asset supplier (the third‐party logistics firm).

Design/methodology/approach

The evolutionary process is based on the way the asset specificity element of transaction costs theory can be perceived by the logistics asset buyer and the logistics asset supplier. The asset specificity element is linked to both network and buyer‐supplier relationship theories with the aim of conceptualising a buyer‐supplier relationship framework. Secondary data for the UK food retail chain are also employed.

Findings

A new relationship framework is developed based on the buyers’‐suppliers’ perceptions in relation to logistics asset specificity, and the conditions required for the formation of the retail logistics network are illustrated. If transaction costs are perceived as high by both the buyer and the supplier of a logistics asset, the retailer will engage into a fourth‐party logistics network formation where the use of information technology systems is of critical importance. At this stage, these systems will become the primary co‐ordination device for the reduction and absorption of complexity in the retail chain.

Originality/value

The paper offers a unique buyer‐supplier partnership framework by proposing that the formation of a fourth‐party logistics network will decrease the complexity of modern retail logistics operations. The paper will assist retail managers responsible for the development of logistics strategies and will be beneficial to researchers examining logistics and supply chain management operations.

Details

Journal of Business & Industrial Marketing, vol. 20 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 13 February 2017

Ping Su, Shuguang Liu and Jun Lin

This paper aims to study a dominant e-retailer operating its own e-marketplace (B2C) to host peer competitor as well as acting as a traditional retailer (“dual-format” retailing

Abstract

Purpose

This paper aims to study a dominant e-retailer operating its own e-marketplace (B2C) to host peer competitor as well as acting as a traditional retailer (“dual-format” retailing as in Mantin and Krishnan 2014). The dominant retailer offers a two-part tariff charging scheme to a third-party seller. The seller decides whether to join the e-marketplace. The present paper is interested in addressing the following questions: What is the pricing equilibrium before/after the formation of the e-marketplace? What will be the “optimal” charging scheme? What is the impact on the e-marketplace operator if the third-party seller has the option to become “featured”.

Design/methodology/approach

This paper adopts a stylized model to capture the competition between the two retailers and applies game theory to solve the pricing equilibrium. The authors model the dual-format retailing in a two-stage decision: Stage 1, the e-marketplace operator offers a two-part tariff; Stage 2, if the other retailer is participating, they engage in a pricing competition. They assume that the e-marketplace operator is a profit maximizer by choosing its charging scheme subject to the condition that the participating retailer is no worse off.

Findings

The authors find that the e-retailer and the third-party seller in the e-marketplace are not always hurt by intensified price competition. They identify conditions under which higher expected prices are charged as a result of agglomeration effect. The authors’ model also provides theoretical evidence on this popular charging scheme, and shows the feasible region in which the e-marketplace operator could allocate the surplus resulted from the formation of the e-marketplace between itself and the participating retailer. Finally, the authors demonstrate that if the third-party seller has the option to become a “featured” retailer (He and Chen, 2006), it can be detrimental to the e-marketplace operator.

Originality/value

This work is different in three ways: First, the authors model an e-marketplace adopting a “dual-format” retailing, facing the trade-off between its direct retailing revenue and the rents collected from the member store, while the literature mainly focuses on e-marketplaces playing the intermediary role. Second, they explicitly model the “market expansion effect” caused by the agglomeration after the formation of the e-marketplace. The present study complements this stream of research by investigating and providing theoretical evidence on the charging scheme popularly adopted by the e-marketplaces and proposes ways to share the surplus to the participating store.

Details

Journal of Modelling in Management, vol. 12 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 11 July 2016

Johan Hagberg, Malin Sundstrom and Niklas Egels-Zandén

Digitalization denotes an on-going transformation of great importance for the retail sector. The purpose of this paper is to analyse the phenomenon of the digitalization of…

42221

Abstract

Purpose

Digitalization denotes an on-going transformation of great importance for the retail sector. The purpose of this paper is to analyse the phenomenon of the digitalization of retailing by developing a conceptual framework that can be used to further delineate current transformations of the retailer-consumer interface.

Design/methodology/approach

This paper develops a framework for digitalization in the retail-consumer interface that consists of four elements: exchanges, actors, offerings, and settings. Drawing on the previous literature, it describes and exemplifies how digitalization transforms each of these elements and identifies implications and proposals for future research.

Findings

Digitalization transforms the following: retailing exchanges (in a number of ways and in various facets of exchange, including communications, transactions, and distribution); the nature of retail offerings (blurred distinctions between products and services, what constitutes the actual offering and how it is priced); retail settings (i.e. where and when retailing takes place); and the actors who participate in retailing (i.e. retailers and consumers, among other parties).

Research limitations/implications

The framework developed can be used to further delineate current transformations of retailing due to digitalization. The current transformation has created challenges for research, as it demands sensitivity to development over time and insists that categories that have been taken for granted are becoming increasingly blurred due to greater hybridity.

Originality/value

This paper addresses a significant and on-going transformation in retailing and develops a framework that can both guide future research and aid retail practitioners in analysing retailing’s current transformation due to digitalization.

Details

International Journal of Retail & Distribution Management, vol. 44 no. 7
Type: Research Article
ISSN: 0959-0552

Keywords

Book part
Publication date: 7 October 2020

Scott Dacko, Rainer Schmidt, Michael Möhring and Barbara Keller

  • Appreciate the scope and pervasiveness of fake reviews in retailing
  • Recognise the causes of fake reviews in retailing
  • Understand consumer responses to fake reviews in retail

Abstract

Learning Outcomes

  • Appreciate the scope and pervasiveness of fake reviews in retailing

  • Recognise the causes of fake reviews in retailing

  • Understand consumer responses to fake reviews in retail

  • Understand how retailers can and should manage fake reviews

  • Understand better the expected future of retail with fake reviews

Appreciate the scope and pervasiveness of fake reviews in retailing

Recognise the causes of fake reviews in retailing

Understand consumer responses to fake reviews in retail

Understand how retailers can and should manage fake reviews

Understand better the expected future of retail with fake reviews

Article
Publication date: 2 April 2021

Emi Moriuchi

The purpose of this paper is to assess the impact of country-of-origin (COO) cues and pricing perspective based on the third-party seller's name, intermediary, on consumers'…

1811

Abstract

Purpose

The purpose of this paper is to assess the impact of country-of-origin (COO) cues and pricing perspective based on the third-party seller's name, intermediary, on consumers' purchasing decisions on e-commerce sites. A model was proposed to investigate consumers' perception toward sellers' online reputation, the mediating role of trust between the reputation of third-party sellers and attitude toward e-commerce as an intermediary, and attitude toward third-party sellers. In addition, this study also looks at the pricing threshold of consumers who are willing to buy from a third-party seller that has a negative COO cue, which is an area that has received limited attention in e-commerce studies.

Design/methodology/approach

The paper opted for an experimental study using survey data gathered from general American consumers. Two studies were conducted. One hundred seventy surveys were gathered for study 1, and 171 surveys were gathered for study 2. The two studies had two product snippets which showed an Amazon product page with a list of third-party sellers. For study 2, all variables were kept the same – reviews and ratings for both products and sellers, delivery time, descriptions, e-commerce as an intermediary and brand of a bag – except for the price.

Findings

The findings showed that consumers' perceived reputation of a third-party seller has a positive impact on their attitude toward the seller and toward the e-commerce intermediary. In addition, the role of a positive COO influences attitudes and intentions. However, this influence is moderated by price when price is noticeably higher when compared to an alternative option provided by a seller from a country with a lower COO evaluation. This study suggests that the benefits of a positive COO diminish when a seller with a lower COO evaluation is able to provide a lower price for the product. In study 1, the results show that positive COO trumps negative COO. In study 2, the result shows that consumers lean toward a lower-price product and disregard their evaluation toward the COO. Furthermore, in study 2, results show that in order for the pricing to offset the negative COO attributes of a third-party seller, the price needs to be within 22–30% lower than the American seller's product pricing.

Research limitations/implications

With the chosen research approach, the research results may lack generalizability for the other markets (e.g. Asian consumer market). Therefore, researchers are encouraged to test the proposed propositions further.

Originality/value

This study highlights the implications of COO cues such as sellers' names and how they impact consumers' willingness to purchase a product. The second study investigates consumers' willingness to purchase when the pricing for a product sold by a negative COO seller versus a positive COO seller is different in an e-commerce environment. In addition, the second study determines that the role of trust has more impact on consumers' attitude toward a third-party seller than it has on their attitude toward the e-commerce intermediary.

Details

International Marketing Review, vol. 38 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Content available
Book part
Publication date: 7 October 2020

Abstract

Details

Retail Futures
Type: Book
ISBN: 978-1-83867-664-3

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