Editorial

Citation

Towers, N. (2010), "Editorial", International Journal of Retail & Distribution Management, Vol. 38 No. 5. https://doi.org/10.1108/ijrdm.2010.08938eaa.001

Editorial

Article Type: Editorial From: International Journal of Retail & Distribution Management, Volume 38, Issue 5

For this edition, we have four international contributions on consumer awareness in Greece, distribution channels in Pakistan, market orientation in China and distributor brand new product development (NPD) in Norway. These papers demonstrate the wide breadth of good quality, current, and relevant retail and distribution management research being undertaken across international boundaries.

The first contribution by Polyxeni (Jenny) Palla, Christina Boutsouki, and Yorgos Zotos examine the evolution of the quantity surcharge phenomenon as a conscious pricing policy as well as the resulting consumer awareness and reactions to quantity surcharges in Greece. It discusses the findings of two distinct surveys conducted in 1989 and 2007. The 1989 study is used in the form of secondary data. Store audits and a consumer survey were employed in 2007 in order to obtain the required information for a comparative analysis between the two periods. The rationale behind such an analysis has to do with the developments in the Greek market and the evolution of the retail industry in Greece. The findings indicate that the quantity surcharge incidents recorded in the market in both periods are the result of a conscious pricing policy. At the same time, evidence suggests that the more mature the market becomes, the less frequent and less intense the phenomenon of quantity surcharges becomes. Consumers’ attitude and reaction to quantity surcharges are also discussed indicating that the market’s evolution has also an effect on consumers. The study of quantity surcharges in Greece further supports previous empirical evidence that amply demonstrates that quantity surcharge is widely practiced as a conscious pricing policy by business.

Asad Aman and Gillian Hopkinson consider the impact of the entry of international wholesalers upon existing FMCG channel structures and the relationships between channel members in Pakistan. Their paper looks at an under-researched market and comments upon the first steps in that market towards consolidation and internationalisation. In looking at the reactions of extant market players to this recent development, the paper provides useful insight and guidance to those (manufacturers, retailers, and analysts) interested in retail in Pakistan. Although currently holding small market share, the entry and growth of international, consolidated wholesale has opened alternative channel structures. This poses a threat to some channel members and creates relationships that alter the distribution of power in the channel. The fluidity of the current situation may be seen as disrupting power patterns in the extant channels. For the moment and as a result of the fluidity of the situation it is possible to see the relationships between FMCG manufacturers and other channel participants under considerable strain possibly leading to an increase in the complexity of channel management in Pakistan. There is also reason to project increased consolidation (if modest in comparison to Western markets) not only at the wholesale level but also at the retail level.

The next paper by Brenda Sternquist, Ying Huang, and Zhengyi Chen provides an investigation of market orientation of retailers in China as an emerging economy. Their study focuses on retailer perspectives with the goal of determining the value of assessing the supplier market orientation. Results from this study provide support for a link between the extent of retailer market orientation and how market-oriented behaviour coincides with perceived supplier market orientation. We find that perceived supplier market orientation, firm size, and ownership are predictors of retailer market orientation. The results of their study suggest that market orientation is perceived as important and is being adopted by retailers with varying ownerships and structures across China. Retailers can influence supplier market orientation to achieve channel efficiency and effectiveness. Also by embracing market orientation, suppliers can improve relationships with retailers and place themselves in a position of greater value to them. In practice, suppliers can analyze retailer market orientation status and benchmark their own market orientation to differentiate themselves from competitors. In addition, our results show that retailers perceive supplier market orientation to be lower than retailer market orientation. This suggests that suppliers may need to work on improving retailers’ perceptions as well.

The final paper by Nina Veflen Olsen and James E. Sallis investigates whether NPD processes and outcomes differ between manufacturers and distributors. This is one of the first empirical investigations of differences in NPD processes and outcomes between manufacturer and distributor brands. It also shows the effect of brand concentration on distributor brand growth. Distributors differ from manufacturers in the NPD process in several ways: more in-store interaction resulting in very market-driven products. They usually outsource technical development, and they launch brands with substantially less market communication through fewer marketing channels. Regarding outcomes, distributors who mostly develop copycat products of large volume manufacturer brands have lower failure rates than manufacturers. More surprising, the study reveals that distributor brands achieve faster growth in market share than manufacturer brands when brand concentration is low, and some low volume distributor brands have a higher average retail price than manufacturer brands indicating that different private label categories exist.

Neil Towers