Sandip Trada and Baljeet Singh
This research aims to analyse the potential role of perceived fairness as a complete governance mechanism in distribution channels. In doing so, this study examines the direct…
Abstract
Purpose
This research aims to analyse the potential role of perceived fairness as a complete governance mechanism in distribution channels. In doing so, this study examines the direct impact of perceived fairness on governance costs and its interactive effect on the driver (i.e. relationship-specific investments (RSIs) and deterrent (i.e. communication) of suppliers’ governance costs.
Design/methodology/approach
This research used a structural modelling approach to analyse the matched data collected from 241 pharmaceutical suppliers and distributors and test the proposed model.
Findings
The findings reveal that perceived fairness directly reduces governance costs in distribution channels. Further, they suggest that perceived fairness weakens the positive impact of suppliers’ RSIs and strengthens the negative effects of communication on suppliers’ governance costs.
Research limitations/implications
This study suggests that perceived fairness is a novel and effective way to govern distribution channels. These findings provide a holistic understanding of how perceived fairness reduces governance costs, directly and indirectly.
Practical implications
The findings suggest managers should design fair channel policies and train sales personnel to emphasise fairness during channel interactions. This would foster an equitable channel climate that safeguards investments and reduces governance efforts.
Originality/value
Prior literature has mostly overlooked the potential role of perceived fairness in distribution channels; however, this study addresses this gap and highlights the dual role of perceived fairness in channel governance.
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Zhe Zhang, Chunyi Zhang, Xiaolin Wang and Dechang Wang
As the China retail market continues to evolve, traditional retail brands are seeking more effective channel management strategies, while emerging brands are exploring marketing…
Abstract
As the China retail market continues to evolve, traditional retail brands are seeking more effective channel management strategies, while emerging brands are exploring marketing models that transition from online to offline. This case, based on SO-IN Technology's digital service practices of “gig work + intelligent digitalization” in the China retail industry, delves into the business models of gig and crowdsourcing models as well as intelligent digital marketing services. It focuses on the strategic choices that SO-IN Technology faced: What challenges might SO-IN Technology's ‘gig economy + digital intelligence’ model face? What are the key factors that determine sustainable growth?
Qian Xu and Yujie Wang
Smartbi is a nascent Chinese BI services provider in such a competitive and promising market. CEO Huafu Wu is contemplating a revision of its sales strategy: whether to prioritize…
Abstract
Smartbi is a nascent Chinese BI services provider in such a competitive and promising market. CEO Huafu Wu is contemplating a revision of its sales strategy: whether to prioritize customized products for key accounts or offer standardized services to a wider market. The shift of sales strategy brings a relevant question regarding targeting large customers or reaching mid-sized customers through distributors. This case can be used in marketing courses to illustrate the interplay between markets and products, the distinction between horizontal and vertical market expansion, and the complexities of channel management.
Sonal Trivedi, Veena Grover and Balamurugan Balusamy
In today’s competitive era, it has become significant for companies to understand their end consumer and target customers effectively. One of the ways to accomplish this goal is…
Abstract
In today’s competitive era, it has become significant for companies to understand their end consumer and target customers effectively. One of the ways to accomplish this goal is data-driven marketing. The current study seeks to explore the differences between traditional marketing and digital marketing, the pros and cons of data-driven marketing and usage of artificial intelligence (AI) in data-driven marketing. The research objective was met by exploration of published papers in the past 10 years covering the evolution of data-driven marketing, functions of data engineering, application of technology like AI in data-driven marketing and opportunities and challenges. This study is significant as it provides the insight into the relationship between marketing and data engineering and thus helps marketers to frame strategies by leveraging data-driven marketing to improve consumer experience and gain a competitive edge. Moreover, this study is an interdisciplinary study including marketing, engineering and data science. This study focusses on use of innovative methods to improve profitability of business and consumer experience.
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Jing Zhu, Xingchen Nan, Adrian Chen Yang Tan and Fen Wu
This study aims to examine manufacturers’ strategic responses to consumer migration from offline to online channels, focusing on how these shifts affect their channel selection…
Abstract
Purpose
This study aims to examine manufacturers’ strategic responses to consumer migration from offline to online channels, focusing on how these shifts affect their channel selection and business strategies.
Design/methodology/approach
This research uses a theoretical framework using a Stackelberg game model to analyze manufacturers’ decision-making processes amid evolving consumer behaviors. It intricately explores the strategic implications across three distinct channel structures: manufacturer direct sales (MD), retailer resale (RR) and retailer agency (RA), focusing on their economic outcomes and market dynamics. This approach is instrumental in decoding the multifaceted nature of channel migration and its impact on manufacturer–retailer relationships in the digital marketplace.
Findings
The research reveals that in MD and RA scenarios, as channel migration intensifies, manufacturers tend to lower both wholesale and online retail prices. Conversely, in the RR scenario, the set wholesale price is intricately linked to the market share, with higher prices set for smaller offline market shares. From a strategic standpoint, MD emerges as the optimal choice for maximizing manufacturer profits, while RA takes precedence when considering the entire supply chain’s profitability, particularly under high commission costs.
Originality/value
This research illuminates the impact of channel migration on manufacturers’ pricing strategies and channel selection. It not only advances the understanding of consumer behavior in multichannel retail environments but also offers practical insights for businesses in effectively managing online and offline channels.
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Olivia McDermott, Julien Swana Tansha, Anna Trubetskaya, Angelo Rosa and Rachel Moran
This research aims to enhance digital marketing processes by using design of experiments in safelist mailers and traffic exchange websites.
Abstract
Purpose
This research aims to enhance digital marketing processes by using design of experiments in safelist mailers and traffic exchange websites.
Design/methodology/approach
The research applies design of experiments to improve an online digital marketing website.
Findings
The findings show that design of experiments can help improve digital marketing quality by generating more interactions with safelist mailers and traffic exchange websites, reducing time spent in the marketing process, allocating the appropriate amount of credits to significant websites and avoiding product price increases.
Research limitations/implications
This research aims to increase awareness of the impact and applicability of design of experiments to digital marketing and demonstrates the application of design of experiments in any digital marketing process, including safelist mailers and traffic exchange websites.
Originality/value
To the best of the authors’ knowledge, this is the first study applying design of experiments within online marketing. This study can be leveraged by academics and marketing functions to demonstrate the benefits of design of experiments to the marketing function to improve process efficiency and resource utilisation.
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Qingyun Jiang and Chunyi Zhang
Nike rolled out the Direct-to-Consumer (DTC) marketing strategy to China market in 2021 in line with global strategy. Yang Ming, the VP of Direct Retail E-commerce in Nike Greater…
Abstract
Nike rolled out the Direct-to-Consumer (DTC) marketing strategy to China market in 2021 in line with global strategy. Yang Ming, the VP of Direct Retail E-commerce in Nike Greater China, had to answer several questions: Would Nike China follow the headquarters' strategy or develop a localized plan? If localization was pursued, how did DTC strategies differ between China and the US, and which online sales channel to be selected as partner? This case highlights the trends in marketing channel in China to impress students with the concepts of digital transformation, supply chain and channel.
Chompoonut Suttikun, Patcharaporn Mahasuweerachai and William Hamilton Bicksler
The purpose of this study was to understand how social media marketing activities (SMMA) influence consumers’ perceived value of online-to-offline food ordering experiences…
Abstract
Purpose
The purpose of this study was to understand how social media marketing activities (SMMA) influence consumers’ perceived value of online-to-offline food ordering experiences, subsequently affecting satisfaction and intentions to visit physical establishments.
Design/methodology/approach
Data from 845 participants was collected using a purposive sampling technique. Covariance-based structural equation modeling was then applied to assess the conceptual model and its hypotheses.
Findings
Analysis of the structural equation modeling showed support for all hypotheses. SMMA exhibited positive effects on trust, hedonic value and utilitarian value, while these in turn positively influenced the use of online-to-offline food delivery services (O2O-FDS). In addition, results indicated a positive effect of O2O-FDS use on omni-channel restaurant satisfaction which then led to increased intentions to dine in at physical restaurants.
Practical implications
Results suggest that engaging SMMA and O2O-FDS builds trust and encourages in-person visits.
Originality/value
Results from this study build upon the literature by shedding new light on the links between the effects of SMMA, trust, perceived value and consumers’ intentions to visit physical restaurants after using the O2O-FDS. In addition, consumers’ perceived trust, as well as hedonic and utilitarian values, mediate the effect of SMMA on O2O-FDS.
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The purpose of this study is to provide an optimal joint strategy of multi-period pricing and sales effort for a retailer with a logit choice demand in an integrated channel.
Abstract
Purpose
The purpose of this study is to provide an optimal joint strategy of multi-period pricing and sales effort for a retailer with a logit choice demand in an integrated channel.
Design/methodology/approach
Customer demand is characterized by a logit choice model, it varies over time and is influenced by price and sales effort. The multi-period decision model for the retailer is constructed using a discrete-time dynamic programming method to determine the optimal price and sales effort in each period.
Findings
When the inventory level does not exceed a certain threshold, decreasing price and increasing sales effort over time or as inventory level increases are the optimal strategies. However, once the inventory level exceeds the threshold, the optimal strategy is to maintain both price and sales effort constant as the inventory level changes or to increase price and decrease sales effort over time. Additionally, the greater the influence of sales effort on demand or the higher the arrival rate of customers, the higher the optimal price and the greater the optimal sales effort level.
Originality/value
This study contributes to the existing research on dynamic pricing and sales effort in integrated channels by incorporating a logit choice model. Furthermore, it provides valuable management insights for retailers operating in an integrated channel to make pricing and sales effort decisions based on inventory level and time period.
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Samy Belaid, Dorsaf Fehri Belaid, J. Ricky Fergurson, Maria Petrescu, Selima Ben Mrad and Costinel Dobre
The study evaluates the complexities of brand value co-creation among stakeholders within B2B ecosystems. This exploration is critical due to identified gaps in existing…
Abstract
Purpose
The study evaluates the complexities of brand value co-creation among stakeholders within B2B ecosystems. This exploration is critical due to identified gaps in existing literature regarding B2B branding models, especially in the context of strategic decision-making within emerging economies, taking an emerging market as a prime example.
Design/methodology/approach
The study employs qualitative dyadic interviews to gain deeper insights into the B2B value co-creation process. These interviews center on understanding the intricacies of brand value co-creation between retail chain distributors and private label producers, specifically in the Tunisian market.
Findings
Findings reveal the paramount importance of resource sharing and the cultivation of strong interpersonal relationships. The results show the role of comprehensive contracts as a foundation for enduring collaboration across various facets, including product development, pricing strategies, branding initiatives and market positioning.
Research limitations/implications
While the research offers pivotal insights into the Tunisian market, it is essential to acknowledge its context-specific nature. This underscores the imperative for broader studies encompassing diverse emerging markets to generalize the findings.
Practical implications
The findings of this study provide helpful insights for retailers and private brand manufacturers in emerging countries, allowing them to improve their business strategies and adapt their operations. Marketers in the B2B area can consider the factors underlined by our study when formulating their collaborative relations with current and potential business partners, especially in the North African region.
Originality/value
While numerous studies have spotlighted the service-dominant logic in brand value co-creation, this research systematically evaluates the interactions and relationships between primary stakeholders, highlighting modern business-to-business models.