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Context effects as customer reaction on delisting of brands

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  • Wiebach, Nicole
  • Hildebrandt, Lutz

Abstract

The delisting of brands is frequently used by retailers to strengthen their negotiating position with the manufacturers and suppliers of their product assortment. However, retailers and manufacturers have to consider the risk of potential reactions when customers are faced with a reduced or modified assortment and thus, different choice. In this paper, two studies are presented which investigate customers' switching behavior if a (sub-)brand is unavailable and key determinants of the resulting behavior are discussed. Various conditions are tested by taking into account context theory. The results reveal that customer responses depend significantly on the context. A real-life quasi-experiment suggests that manufacturers may encounter substantially larger losses than retailers. Managerial implications for both parties can be derived and recommendations for further research are developed.

Suggested Citation

  • Wiebach, Nicole & Hildebrandt, Lutz, 2010. "Context effects as customer reaction on delisting of brands," SFB 649 Discussion Papers 2010-056, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2010-056
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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