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Distribution in Romania at the shelf supremacy’s moment of truth: competition and cooperation

Author

Listed:
  • Theodor Valentin Purcarea

    () (Romanian-American University)

  • Anca Purcarea

    () (Academy of Economic Studies, Bucharest)

Abstract

This article explores the development of the Romanian retail market, the recent evolutions on this market and the impact of the recent conflict between the retailers and the Romanian producers, starting from current questions not only in Romania but also at European level. The beginning of this conflict producers-retailers emphasized the accent placed on the retailers’ ethical behaviour in the context of the buying process of products from suppliers, namely the numerous slotting fees imposed on the suppliers so that their products reach the store’s shelves, covering the supply chain’s path whose efficacy depends on the collaboration relationships between participants, who also confront with a series of legal and ethical constraints, the legal ones resulting, in general, from the competition legislation and the one concerning consumers protection. Romania has confirmed its positioning as an important market for the large distribution chains. The promoter of the development of retail networks has been the consumer behaviour, within the challenging framework of the relation between marketing’s impact on consumer and consumer’ impact on marketing strategies. At the moment, numerous well-known distribution chains are actively participating on the Romanian market. The necessity of building an ecosystem of conversation, based on interpersonal communication, is being emphasized, creating a shared experience, building trust and strengthening the relationships between the participants in the supply chain. This involves evaluating the relationship between Romanian producers and the large distribution chains and the impact of this relationship on the social welfare.

Suggested Citation

  • Theodor Valentin Purcarea & Anca Purcarea, 2008. "Distribution in Romania at the shelf supremacy’s moment of truth: competition and cooperation," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 10(24), pages 9-25, June.
  • Handle: RePEc:aes:amfeco:v:10:y:2008:i:24:p:9-25
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    File URL: http://www.amfiteatrueconomic.ase.ro/arhiva/pdf/no24/articol_fulltext_pag9.pdf
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    References listed on IDEAS

    as
    1. Celsi, Richard L & Olson, Jerry C, 1988. " The Role of Involvement in Attention and Comprehension Processes," Journal of Consumer Research, Oxford University Press, vol. 15(2), pages 210-224, September.
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    Cited by:

    1. Svetlana Vukotić & Jugoslav Aničić & Marko Laketa, 2013. "Clusters as a Part of Improvement Function of Serbian Economy Real Sector Competitiveness," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 224-245, February.
    2. Gheorghe Săvoiu & Vasile Dinu & Laurenţiu Tăchiciu, 2012. "Romania Foreign Trade in Global Recession, Revealed by the Extended Method of Exchange Rate Indicators," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 173-194, February.

    More about this item

    Keywords

    retail market; producer-distributor-consumer partnership; large distribution chains; slotting fees; consumer welfare;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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