In emerging markets, the main actors in the globalization process are widely considered to be governments and multinational corporations (MNCs). The authors examine the role of a key player that has largely been left out of the globalization debate—the consumer. Viewed through a lens of consumer agency, the authors outline important factors that influence whether new foreign goods that enter the marketplace are accepted, rejected, or transformed by consumers. This is investigated in the context of the Indian marketplace, an emerging market that has only recently had access to foreign goods. The authors’analysis suggests that consumers are not merely pawns of MNCs or governments. The framework developed to understand the complexities of consumer agency in an emerging market provides the first such effort to guide future empirical consumer globalization research.
Slotting allowances are a relatively recent trend, particular to the retail food industry. These allowances are lump-sum, up-front transfer payments from manufacturer to retailer when the manufacturer launches a new product. The practice has attracted some scrutiny because of uncertainty about its purposes and consequences. We draw from the extant literature to identify factors that potentially influence the relative magnitude of slotting allowances. Based on analysis of primary survey data from retailers and manufacturers, we observe that charging and paying of slotting allowances are affected by the relative strength of the players. Among retailers, the relative magnitude of slotting fees increases with retailers' informational advantage over the manufacturer about the likely success of the new product, even when retailers recognize that the product is likely to be successful. Additionally, and consistent with the first finding, retailers with lower costs (i.e., potentially more efficient and powerful retailers) received higher slotting allowances. Furthermore, retailers charge higher slotting fees, even when concerns about manufacturers' fulfilling postlaunch advertising commitments are minimal, implying that relatively powerless manufacturers are asked to provide credible commitments regarding postlaunch activities and are asked to pay relatively high slotting fees. Among manufacturers, the relative magnitude of slotting fees paid is lower for those who have a strong market share position. We discuss the theoretical, managerial, and public policy implications of our findings.
The authors examine consumer tensions arising in India’s transitional marketplace. These findings uncover cultural characteristics underlying consumption strategies to address these tensions: the danger and immorality of consumption, the distance and inaccessibility of many newly available products, and the desire for sociality and relationships via consumption. Consumer desires sometimes are in opposition to and sometimes in line with local cultural values and norms such as the frugality ideal and Indian rituals and beliefs. The authors present a typology of resistance strategies, discuss how these impact marketplace transitions, and outline implications for macromarketing. This work enhances the conceptualization of how consumers negotiate tensions as marketplaces globalize and demonstrates how consumers can create their own discourses in this process that in turn can shape the marketplace.
Purpose -This paper's aim is to identify structural and relational factors influencing the upstream channel management of organized retailers in India. Design/methodology/approach -In-depth interviews were conducted with 15 organized retailers and two manufacturers in India. Data were analyzed using the thematic network analysis technique from qualitative research. The authors use the framework of institutional theory to guide the discussion. Findings -The findings suggest that government regulations influence the supply chain structure in India. Relational bonds offset the uncertainty borne of weak institutions. Informational transparency and long-term orientation foster trust between channel partners. This trust, in turn, leads to collaborative partnerships.Research limitations/implications -The findings have implications for multinationals planning to enter the Indian retail industry. There is a need to understand complex regulatory and social institutions in India. The uniqueness of these institutions calls for adaptive strategies toward channel management. Originality/value -The paper contributes to the literature on the supply chain structure in India. Despite growing interest in the Indian retailing industry, not many studies reflect on the specific B2B exchange structure in India. The paper fills this gap and also provides several marketing implications for multinational retailers planning to enter the Indian market.
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