The Effect of Standardized Information on Firm Survival and Marketing Strategies
AbstractWe argue that standardized information disclosure (information using a common format and uniform metrics) creates asymmetric opportunities for firms, which affects their strategies and survival. We test our predictions using a longitudinal, quasi-experimental field study, involving the Nutrition Labeling and Education Act of 1990 (NLEA), and we focus on firm market share within a category as a key asymmetry. Findings indicate that, in general, the NLEA had no effect on firm responses. However, when accounting for firm differences, we observe that the NLEA led to (1) an increase in small-share firm exits and (2) a greater increase in distribution for large-share firms. No concurrent increase in price by large-share firms following the NLEA was observed. We conclude by discussing the implications of these effects for firm strategy, the design of public policy, and theories regarding the impact of information on markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Marketing Science.
Volume (Year): 24 (2005)
Issue (Month): 2 (September)
public policy; marketing strategy; competitive strategy;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Caldeira, Monica & Sottomayor, Miguel & Souza Monteiro, Diogo M., 2011. "Portuguese Retailers’ Motivations to Adopt Front of Pack Nutrition Labels: A Qualitative Analysis," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 109189, Agricultural and Applied Economics Association.
- Sanjeev K. Routray, 2006. "Two Kinds of Activism: Reflections on Citizenship in Globalising Delhi," Working Papers id:463, eSocialSciences.
- Lee, In Hyeock & Rugman, Alan M., 2012. "Firm-specific advantages, inward FDI origins, and performance of multinational enterprises," Journal of International Management, Elsevier, vol. 18(2), pages 132-146.
- Theoharakis, Vasilis & Vakratsas, Demetrios & Wong, Veronica, 2007. "Market-level information and the diffusion of competing technologies: An exploratory analysis of the LAN industry," Research Policy, Elsevier, vol. 36(5), pages 742-757, June.
- George Zinkhan & Cara Peters & Candice Hollenbeck, 2008. "Do empirical studies address the objectives of the nutrition labeling and education act: a review and synthesis relevant for marketing academicians," International Review on Public and Nonprofit Marketing, Springer, vol. 5(2), pages 89-116, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.