IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v8y1989i2p107-128.html
   My bibliography  Save this article

The Relationship Between Distribution and Market Share

Author

Listed:
  • Paul Farris

    (University of Virginia)

  • James Olver

    (College of William and Mary)

  • Cornelis De Kluyver

    (CRESAP)

Abstract

This paper develops an aggregate-level model of distribution and market share for frequently purchased, branded consumer goods that is founded in the concepts of “push” and “pull.” The model makes a key distinction between uncompromised and compromised demand as sources of market share. Uncompromised demand is demand that is satisfied when the preferred brand is found; compromised demand results from brands that lack broad distribution and whose potential customers are willing to compromise and purchase another brand when the preferred brand is not present. Trade behavior is also addressed by analyzing the effects of consumer demand “feedback” on the trade's decision to stock and merchandise the brand. Compromised demand and feedback effects may be critical, and often overlooked, determinants of market share. Under a variety of model assumptions, analytical results are consistent with longitudinal and cross-sectional evidence that market share is a function of distribution, increasing at an increasing rate up to 100 percent distribution. In addition to these insights, we believe that the model has promise for future normative work on balancing push and pull marketing effects.

Suggested Citation

  • Paul Farris & James Olver & Cornelis De Kluyver, 1989. "The Relationship Between Distribution and Market Share," Marketing Science, INFORMS, vol. 8(2), pages 107-128.
    • Handle: RePEc:inm:ormksc:v:8:y:1989:i:2:p:107-128
    DOI: 10.1287/mksc.8.2.107
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.8.2.107
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.8.2.107?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

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


    Cited by:

    1. Richard Friberg & Mark Sanctuary, 2017. "The Effect of Retail Distribution on Sales of Alcoholic Beverages," Marketing Science, INFORMS, vol. 36(4), pages 626-641, July.
    2. Tenn, Steven & Yun, John M., 2008. "Biases in demand analysis due to variation in retail distribution," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 984-997, July.
    3. Kennedy, Rachel & Hartnett, Nicole, 2018. "Marketing is scrambled: All evidence-based theorists are invited to breakfast," Australasian marketing journal, Elsevier, vol. 26(4), pages 303-306.
    4. Ailawadi, Kusum L. & Beauchamp, J.P. & Donthu, Naveen & Gauri, Dinesh K. & Shankar, Venkatesh, 2009. "Communication and Promotion Decisions in Retailing: A Review and Directions for Future Research," Journal of Retailing, Elsevier, vol. 85(1), pages 42-55.
    5. Venkatesan, Rajkumar & Farris, Paul & Guissoni, Leandro A. & Neves, Marcos Fava, 2015. "Consumer Brand Marketing through Full- and Self-Service Channels in an Emerging Economy," Journal of Retailing, Elsevier, vol. 91(4), pages 644-659.
    6. Alberto Sa Vinhas, 2022. "Plural forms and dual distribution: the “external” party’s perspective and the role of path dependency," Marketing Letters, Springer, vol. 33(3), pages 443-469, September.
    7. Peter J. Danaher & Isaac W. Wilson & Robert A. Davis, 2003. "A Comparison of Online and Offline Consumer Brand Loyalty," Marketing Science, INFORMS, vol. 22(4), pages 461-476, February.
    8. Ailawadi, Kusum L. & Farris, Paul W., 2017. "Managing Multi- and Omni-Channel Distribution: Metrics and Research Directions," Journal of Retailing, Elsevier, vol. 93(1), pages 120-135.
    9. Franses, Philip Hans & Kloek, Teun & Lucas, Andre, 1998. "Outlier robust analysis of long-run marketing effects for weekly scanning data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 293-315, November.
    10. Roelf Bult, Jan & Leeflang, Peter S. H. & Wittink, Dick R., 1997. "The relative performance of bivariate causality tests in small samples," European Journal of Operational Research, Elsevier, vol. 97(3), pages 450-464, March.
    11. Dawes, John, 2022. "Factors that influence manufacturer and store brand behavioral loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    12. Kuntner, Tobias, 2017. "Price promotions and brand equity: the role of brand types," EconStor Preprints 157296, ZBW - Leibniz Information Centre for Economics.
    13. Wilbur, Kenneth C. & Farris, Paul W., 2014. "Distribution and Market Share," Journal of Retailing, Elsevier, vol. 90(2), pages 154-167.
    14. Kirsten Victory & Magda Nenycz-Thiel & John Dawes & Arry Tanusondjaja & Armando Maria Corsi, 2021. "How common is new product failure and when does it vary?," Marketing Letters, Springer, vol. 32(1), pages 17-32, March.
    15. Derek W. Bunn & Stefania Pantelidaki, 2005. "Development of a multifunctional sales response model with the diagnostic aid of artificial neural networks," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 24(7), pages 505-521.
    16. Marusia Ivanova, 2007. "Genesis and Evolution of Market Share Predictive Models," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 117-148.
    17. Guissoni, Leandro Angotti & Rodrigues, Jonny Mateus & Zambaldi, Felipe & Neves, Marcos Fava, 2021. "Distribution effectiveness through full- and self-service channels under economic fluctuations in an emerging market," Journal of Retailing, Elsevier, vol. 97(4), pages 545-560.
    18. Li, Yuanshuo & Zhang, Zili & Pedersen, Susanne & Liu, Xudong & Zhang, Ziqiong, 2023. "The influence of relative popularity on negative fake reviews: A case study on restaurant reviews," Journal of Business Research, Elsevier, vol. 162(C).
    19. Hirche, Martin & Farris, Paul W. & Greenacre, Luke & Quan, Yiran & Wei, Susan, 2021. "Predicting Under- and Overperforming SKUs within the Distribution–Market Share Relationship," Journal of Retailing, Elsevier, vol. 97(4), pages 697-714.
    20. Erifili Papista & Athanasios Krystallis, 2013. "Investigating the Types of Value and Cost of Green Brands: Proposition of a Conceptual Framework," Journal of Business Ethics, Springer, vol. 115(1), pages 75-92, June.
    21. Antonis A. Michis, 2023. "Retail distribution evaluation in brand-level sales response models," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 366-378, September.
    22. Michel Clement & Anke Hille & Bernd Lucke & Christina Schmidt-Stölting & Frank Sambeth, 2008. "Der Einfluss von Rankings auf den Absatz — Eine empirische Analyse der Wirkung von Bestsellerlisten und Rangpositionen auf den Erfolg von Büchern," Schmalenbach Journal of Business Research, Springer, vol. 60(8), pages 746-777, December.
    23. Rosa Maria Dangelico & Fabio Nonino & Alessandro Pompei, 2021. "Which are the determinants of green purchase behaviour? A study of Italian consumers," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2600-2620, July.
    24. Coelho, Filipe & Easingwood, Chris, 2008. "A model of the antecedents of multiple channel usage," Journal of Retailing and Consumer Services, Elsevier, vol. 15(1), pages 32-41.
    25. Hirche, Martin & Greenacre, Luke & Nenycz-Thiel, Magda & Loose, Simone & Lockshin, Larry, 2021. "SKU performance and distribution: A large-scale analysis of the role of product characteristics with store scanner data," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

    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:inm:ormksc:v:8:y:1989:i:2:p:107-128. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.