IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v17y2020i20p7381-d425797.html
   My bibliography  Save this article

Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior

Author

Listed:
  • Amelie A. Hecht

    (Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, Baltimore, MD 21205, USA)

  • Crystal L. Perez

    (Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, Baltimore, MD 21205, USA)

  • Michele Polascek

    (Westbrook College of Health Professions, University of New England, Portland, ME 04103, USA)

  • Anne N. Thorndike

    (Department of Medicine, Massachusetts General Hospital and Harvard Medical School, Boston, MA 02114, USA)

  • Rebecca L. Franckle

    (Program in Global Public Health and the Common Good, Department of Biology, Boston College, Chestnut Hill, MA 02467, USA)

  • Alyssa J. Moran

    (Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, Baltimore, MD 21205, USA)

Abstract

The retail food environment plays an important role in shaping dietary habits that contribute to obesity and other chronic diseases. Food and beverage manufacturers use trade promotion—incentives paid to retailers—to influence how products are placed, priced, and promoted in stores. This review aims to: (1) catalogue trade promotion practices that manufacturers use to influence retailer marketing strategies, and (2) describe how these retailer marketing strategies affect consumer purchasing behavior and attitudes. Researchers searched five databases, Academic Search Ultimate, Business Source Ultimate, PsycINFO, PubMed, and Web of Science, to identify literature from industry and academic sources published in English through November 2019. Twenty articles describing manufacturer trade promotion practices were synthesized and provided insight into four types of trade promotion practices: category management, slotting allowances, price discounts, and cooperative advertising. Fifty-four articles describing the impact of retailer marketing on consumers were synthesized and graded for quality of evidence. While comparison across studies is challenging, findings suggest that retailer marketing strategies, such as price promotions and prominent placement, lead to increased sales. Results can guide efforts by policymakers, public health practitioners, and food retailers to design retail environments that improve healthy eating while maintaining retailer financial interests. Additional research should measure the impact of retailer marketing strategies on consumer diet quality and retailer outcomes (e.g., return-on-investment).

Suggested Citation

  • Amelie A. Hecht & Crystal L. Perez & Michele Polascek & Anne N. Thorndike & Rebecca L. Franckle & Alyssa J. Moran, 2020. "Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior," IJERPH, MDPI, vol. 17(20), pages 1-34, October.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:20:p:7381-:d:425797
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/17/20/7381/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/17/20/7381/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mussol, Sarah & Aurier, Philippe & de Lanauze, Gilles Séré, 2019. "Developing in-store brand strategies and relational expression through sales promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 241-250.
    2. Jennifer Sanchez-Flack & Julie L. Pickrel & George Belch & Shih-Fan Lin & Cheryl A. M. Anderson & Maria Elena Martinez & Elva M. Arredondo & Guadalupe X. Ayala, 2017. "Examination of the Relationship between In-Store Environmental Factors and Fruit and Vegetable Purchasing among Hispanics," IJERPH, MDPI, vol. 14(11), pages 1-17, October.
    3. Grier, S.A. & Kumanyika, S.K., 2008. "The context for choice: Health implications of targeted food and beverage marketing to African Americans," American Journal of Public Health, American Public Health Association, vol. 98(9), pages 1616-1629.
    4. Marta Arce-Urriza & Javier Cebollada & María Fernanda Tarira, 2017. "The effect of price promotions on consumer shopping behavior across online and offline channels: differences between frequent and non-frequent shoppers," Information Systems and e-Business Management, Springer, vol. 15(1), pages 69-87, February.
    5. Mancino, Lisa & Guthrie, Joanne & Ver Ploeg, Michele & Lin, Biing-Hwan, 2018. "Nutritional Quality of Foods Acquired by Americans: Findings From USDA's National Household Food Acquisition and Purchase Survey," Economic Information Bulletin 276248, United States Department of Agriculture, Economic Research Service.
    6. Stephen F. Hamilton, 2003. "Slotting Allowances as a Facilitating Practice by Food Processors in Wholesale Grocery Markets: Profitability and Welfare Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 797-813.
    7. Pozzi, Andrea, 2013. "E-commerce as a stockpiling technology: Implications for consumer savings," International Journal of Industrial Organization, Elsevier, vol. 31(6), pages 677-689.
    8. Nordfält, Jens & Lange, Fredrik, 2013. "In-store demonstrations as a promotion tool," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 20-25.
    9. Bogomolova, Svetlana & Dunn, Steven & Trinh, Giang & Taylor, Jennifer & Volpe, Richard J., 2015. "Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 1-11.
    10. Tan, Pei Jie & Corsi, Armando & Cohen, Justin & Sharp, Anne & Lockshin, Larry & Caruso, William & Bogomolova, Svetlana, 2018. "Assessing the sales effectiveness of differently located endcaps in a supermarket," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 200-208.
    11. Felgate, Melanie & Fearne, Andrew, 2012. "Using Supermarket Loyalty Card Data to Inform Better Promotional Strategies," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144966, International European Forum on System Dynamics and Innovation in Food Networks.
    12. Page, Bill & Trinh, Giang & Bogomolova, Svetlana, 2019. "Comparing two supermarket layouts: The effect of a middle aisle on basket size, spend, trip duration and endcap use," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 49-56.
    13. Sarah Mussol, 2019. "Developing in-store brand strategies and relational expression through sales promotions," Post-Print hal-02133771, HAL.
    14. Minnema, Alec & Bijmolt, Tammo H.A. & Non, Mariёlle C., 2017. "The impact of instant reward programs and bonus premiums on consumer purchase behavior," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 194-211.
    15. Miguel I. Gómez & Laoura M. Maratou & David R. Just, 2007. "Factors Affecting the Allocation of Trade Promotions in the U.S. Food Distribution System," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 119-140.
    16. Johnson, Joseph & Tellis, Gerard J. & Ip, Edward H., 2013. "To Whom, When, and How Much to Discount? A Constrained Optimization of Customized Temporal Discounts," Journal of Retailing, Elsevier, vol. 89(4), pages 361-373.
    17. Sarah Mussol & Philippe Aurier & Gilles Séré de Lanauze, 2019. "Developing in-store brand strategies and relational expression through sales promotions," Post-Print hal-03079727, HAL.
    18. Laska, Melissa N. & Sindberg, Lesley Schmidt & Ayala, Guadalupe X. & D'Angelo, Heather & Horton, Lucy A. & Ribisl, Kurt M. & Kharmats, Anna & Olson, Christina & Gittelsohn, Joel, 2018. "Agreements between small food store retailers and their suppliers: Incentivizing unhealthy foods and beverages in four urban settings," Food Policy, Elsevier, vol. 79(C), pages 324-330.
    19. Osuna, Ignacio & González, Jorge & Capizzani, Mario, 2016. "Which Categories and Brands to Promote with Targeted Coupons to Reward and to Develop Customers in Supermarkets," Journal of Retailing, Elsevier, vol. 92(2), pages 236-251.
    20. Fornari, Edoardo & Fornari, Daniele & Grandi, Sebastiano & Menegatti, Mario, 2013. "The influence of retailing-mix levers on private label market share: The case of the Italian FMCG market," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 617-624.
    21. Phillips, Megan & Parsons, Andrew G. & Wilkinson, Helene J. & Ballantine, Paul W., 2015. "Competing for attention with in-store promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 141-146.
    22. Kacen, Jacqueline J. & Hess, James D. & Walker, Doug, 2012. "Spontaneous selection: The influence of product and retailing factors on consumer impulse purchases," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 578-588.
    23. Luca Panzone & Richard Tiffin, 2012. "The Impact of Price Promotions on Producer Strategies in Markets With Large Product Heterogeneity," Agribusiness, John Wiley & Sons, Ltd., vol. 28(4), pages 421-439, September.
    24. Breugelmans, Els & Campo, Katia, 2016. "Cross-Channel Effects of Price Promotions: An Empirical Analysis of the Multi-Channel Grocery Retail Sector," Journal of Retailing, Elsevier, vol. 92(3), pages 333-351.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alyssa Moran & Christina Roberto, 2020. "The Retail Food Environment: Time for a Change," IJERPH, MDPI, vol. 17(23), pages 1-4, November.
    2. Amelie A. Hecht & Megan M. Lott & Kirsten Arm & Mary T. Story & Emily Snyder & Margo G. Wootan & Alyssa J. Moran, 2020. "Developing a National Research Agenda to Support Healthy Food Retail," IJERPH, MDPI, vol. 17(21), pages 1-17, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jee, Teck Weng, 2021. "The perception of discount sales promotions – A utilitarian and hedonic perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    2. Tang, Jiansheng & Zhou, Jiamin & Zheng, Chundong & Jiao, Sijing, 2022. "More expectations, more disappointments: Ego depletion in uncertain promotion," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    3. Park, Yookyung & Yi, Youjae, 2023. "Morning deals make me feel smart: Consumer evaluations of online sales promotions differ by time of day," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    4. Bhatt, Siddharth & Pai, Dinesh R. & DelVecchio, Devon, 2023. "The dark side of multiunit discounts: Multiunit discounts reduce rest of basket revenue," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    5. Yu, Annie Pei-I & Chuang, Shih-Chieh & Cheng, Yin-Hui & Wu, Yi-Chin, 2020. "The influence of sharing versus self-use on the preference for different types of promotional offers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    6. Tan, Wee-Kheng & Chen, Bo-Hsiang, 2021. "Enhancing subscription-based ecommerce services through gambled price discounts," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    7. Ladeira, Wagner Junior & de Oliveira Santini, Fernando & Pinto, Diego Costa, 2022. "Clockwise versus counterclockwise turning bias: Moderation effects of foot traffic and cognitive experience on visual attention," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    8. Wang, Hua & Xie, Yanle & Wang, Cuicui, 2023. "The retailer's brand promotion strategy under competition: The impact of supply uncertainty," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    9. Neeraj Pandey & Vaibhav Maheshwari, 2017. "Four decades of coupon research in pricing: Evolution, development, and practice," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(4), pages 397-416, August.
    10. Villanova, Daniel & Bodapati, Anand V. & Puccinelli, Nancy M. & Tsiros, Michael & Goodstein, Ronald C. & Kushwaha, Tarun & Suri, Rajneesh & Ho, Henry & Brandon, Renee & Hatfield, Cheryl, 2021. "Retailer Marketing Communications in the Digital Age: Getting the Right Message to the Right Shopper at the Right Time," Journal of Retailing, Elsevier, vol. 97(1), pages 116-132.
    11. Montazeri, Samaneh & Tamaddoni, Ali & Stakhovych, Stanislav & Ewing, Michael, 2021. "Empirical decomposition of customer responses to discount coupons in online FMCG retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    12. Page, Bill & Trinh, Giang & Bogomolova, Svetlana, 2019. "Comparing two supermarket layouts: The effect of a middle aisle on basket size, spend, trip duration and endcap use," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 49-56.
    13. Kim, Nayeong & Lee, Dongmin & Cho, Seonghwan & Moon, Junghoon, 2023. "The effect of exclusive distribution on the sales of ready-made meals in online retail," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    14. Mussol, Sarah & Aurier, Philippe & de Lanauze, Gilles Séré, 2019. "Developing in-store brand strategies and relational expression through sales promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 241-250.
    15. Radon, Anita & Brannon, Daniel C. & Reardon, James, 2021. "Ketchup with your fries? Utilizing complementary product displays to transfer attention to a focal product," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    16. Gabel, Sebastian & Guhl, Daniel, 2022. "Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs," Journal of Retailing, Elsevier, vol. 98(3), pages 395-411.
    17. Gomez, Miguel I. & Rao, Vithala R. & Yuan, Hong, 2008. "Effects of Horizontal and Vertical Market Power on Trade Promotion Budget and Allocation in the US Supermarket Industry: An Experimental and Empirical Analysis," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6247, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Woo, Hongjoo & Chung, Angie & Richey, Robert Glenn & Hopkins, Christopher & Lee, Kangbok, 2022. "Product-flyer location and type of product categories in retailing," Journal of Business Research, Elsevier, vol. 138(C), pages 146-160.
    19. Boto-García, David & Alvarez, Antonio, 2020. "Modelling the effect of store flyers on supermarket sales: An application to olive oil demand," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    20. Oğuz Çetin & Adam J. Mersereau & Ali K. Parlaktürk, 2020. "Management and Effects of In-Store Promotional Displays," Manufacturing & Service Operations Management, INFORMS, vol. 22(3), pages 481-494, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:17:y:2020:i:20:p:7381-:d:425797. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.