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Empirical models of manufacturer-retailer interaction: A review and agenda for future research

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Listed:
  • Kusum Ailawadi
  • Eric Bradlow
  • Michaela Draganska
  • Vincent Nijs
  • Robert Rooderkerk
  • K. Sudhir
  • Kenneth Wilbur
  • Jie Zhang

Abstract

The nature of the interaction between manufacturers and retailers has received a great deal of empirical attention in the last 15 years. One major line of empirical research examines the balance of power between them and ranges from reduced form models quantifying aggregate profit and other related trends for manufacturers and retailers to structural models that test alternative forms of manufacturer-retailer pricing interaction. A second line of research addresses the sources of leverage for each party, e.g., trade promotions and their pass-through, customer information from loyalty programs, manufacturer advertising, productassortment in general, and private label assortment in particular. The purpose of this article is to synthesize what has been learnt about the nature of the interaction between manufacturers and retailers and the effectiveness of each party’s sources of leverage and to highlight gaps in our knowledge that future research should attempt to fill.
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  • Kusum Ailawadi & Eric Bradlow & Michaela Draganska & Vincent Nijs & Robert Rooderkerk & K. Sudhir & Kenneth Wilbur & Jie Zhang, 2010. "Empirical models of manufacturer-retailer interaction: A review and agenda for future research," Marketing Letters, Springer, vol. 21(3), pages 273-285, September.
  • Handle: RePEc:kap:mktlet:v:21:y:2010:i:3:p:273-285
    DOI: 10.1007/s11002-010-9107-0
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    2. Haucap, Justus & Heimeshoff, Ulrich & Klein, Gordon J. & Rickert, Dennis & Wey, Christian, 2013. "Inter-format competition among retailers: The role of private label products in market delineation," DICE Discussion Papers 101, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Majid M. Goaill & Selvan Perumal & Nor Azila M. Noor, 2013. "The Moderating Effect of Strength of Manufacturer's Brands on the Relationship between Retailer’s Relationship Satisfaction and Commitment: A Theoretical Model," International Review of Management and Marketing, Econjournals, vol. 3(3), pages 93-101.
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    7. Katrin Zulauf & Ralf Wagner, 2023. "Countering Negotiation Power Asymmetries by Using the Adjusted Winner Algorithm," SN Operations Research Forum, Springer, vol. 4(1), pages 1-20, March.
    8. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    9. Marzanna K. Witek-Hajduk & Andrzej Sznajder, 2017. "Sojusze marketingowe między detalistami i producentami dóbr konsumpcyjnych trwałego użytku," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 83-98.
    10. Nalca, Arcan & Boyaci, Tamer & Ray, Saibal, 2018. "Brand positioning and consumer taste information," European Journal of Operational Research, Elsevier, vol. 268(2), pages 555-568.
    11. Draganska, Michaela & Vitorino, Maria Ana, 2023. "Decomposing the effect of advertising: What happens in the retail channel?," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 226-247.
    12. Tereza Dean & David A. Griffith & Roger J. Calantone, 2018. "Reciprocal value sharing in manufacturer-retailer relationships: the case of new product introductions," Marketing Letters, Springer, vol. 29(1), pages 87-100, March.
    13. Marzanna Witek-Hajduk & Tomasz Marcin Napiórkowski, 2017. "Manufacturers’ Benefits from Their Cooperation with Key Retailers in the Context of Business Models: A Cluster Analysis," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 6(1), pages 97-114.
    14. Timothy J Richards & Celine Bonnet & Zohra Bouamra-Mechemache, 2018. "Complementarity and bargaining power," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 45(3), pages 297-331.
    15. Krafft, Manfred & Goetz, Oliver & Mantrala, Murali & Sotgiu, Francesca & Tillmanns, Sebastian, 2015. "The Evolution of Marketing Channel Research Domains and Methodologies: An Integrative Review and Future Directions," Journal of Retailing, Elsevier, vol. 91(4), pages 569-585.
    16. Lina Wang & Elliot Rabinovich & Timothy J. Richards, 2022. "Scalability in Platforms for Local Groceries: An Examination of Indirect Network Economies," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 318-340, January.
    17. Mehta, Ritu & Balakumar, Karthikeyan, 2021. "Redesigning after-sales service: Impact on incumbent product distribution channels," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    18. Marcus Kunter & Daniel Guhl, 2010. "Die Vorteilhaftigkeit handelsgerichteter Konditionen eines Herstellers - Ein spieltheoretischer Untersuchungsansatz," Schmalenbach Journal of Business Research, Springer, vol. 62(7), pages 744-769, November.
    19. Myung Kyo Kim & Ram Narasimhan & Tobias Schoenherr, 2020. "Leveraging Logistics Competence in New Product Sourcing: The Role of Strategic Intent and Impact on Performance," Logistics, MDPI, vol. 4(4), pages 1-17, October.
    20. Thomas Reutterer & Kurt Hornik & Nicolas March & Kathrin Gruber, 2017. "A data mining framework for targeted category promotions," Journal of Business Economics, Springer, vol. 87(3), pages 337-358, April.
    21. Marzanna Katarzyna Witek-Hajduk & Anna Napiórkowska, 2017. "A Framework of Retailer-Manufacturer Cooperation and Coopetition: Consumer Durable Goods Retailers’ Case Studies," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(1), pages 59-76.
    22. Ghassan Shakhshir, 2017. "The Effect Of Merchandising On Food Products In The Romanian Retail Market," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 841-852, July.
    23. Rajagopalan, S. & Xia, Nan, 2012. "Product variety, pricing and differentiation in a supply chain," European Journal of Operational Research, Elsevier, vol. 217(1), pages 84-93.
    24. Desheng Wu, 2017. "Pass-through decision analysis in a supply chain," Annals of Operations Research, Springer, vol. 257(1), pages 297-316, October.
    25. Selin Akca & Anita Rao, 2020. "Value of Aggregators," Marketing Science, INFORMS, vol. 39(5), pages 893-922, September.

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