Marketing Research and Public Policy: The Case of Slotting Fees

Wilkie, William L.; Desrochers, Debra M.; Gundlach, Gregory T.

doi:10.1509/jppm.21.2.275.17591

Cited by 44 publications

(44 citation statements)

References 15 publications

(24 reference statements)

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“…Due to the transfer of the power of industry to the retailer, the practice of slotting fees represents a strategy for the fabricant to influence the retailer to have the products distributed, exposed, or stored at the sales point. This value is paid by the industry, and it can be funded with money or as subsidy, discounts in the orders or bonus of products (Wilkie et al, 2002). However, the conflicts between retailer and supplier can generate greater volume of sales, greater profitability and reduction of time of supplying to every member of the chain.…”

Section: Answerofthecostumermentioning

confidence: 99%

Assortment planning: Strategic perception of retail owners and managers in Brazil

Veiga¹,

Veiga²,

Catapan³

et al. 2014

Afr. J. Bus. Manage.

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The goal of the Assortment Planning (AP) is to specify an assortment that maximizes sales and profits which counterbalance the offer of products based on the decisions made about sales; it also increases the probability for consumers to find their own favorite product without increase in storage costs or risk of stock out. This work aims to investigate the strategic perception of retail owners and managers about assortment. Specifically, this study will analyze the impact of assortment, clients' fidelity, level of service and profits on the vision of the retailer. It is an exploratory investigation of retailers' perception about assortment management. The results of this research allow one to interfere with the inadequate knowledge of the interviewees about the theme, mainly the smaller stores. Generally, it was verified that the owners and managers evaluated assortment planning as a primordial strategic tool and considered important a system of information. Although recognizing the strategic importance of AP in the control of unproductive variety, the consumer of retail goods, mainly the small retailer uses the intuitive judgment related to the use of analytic methodology.

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Section: Answerofthecostumermentioning

confidence: 99%

Assortment planning: Strategic perception of retail owners and managers in Brazil

Veiga¹,

Veiga²,

Catapan³

et al. 2014

Afr. J. Bus. Manage.

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show abstract

“…However, they are often not passed on to consumers (Hoyt, 1997); and may induce the trade to stock-pile a product in order to take advantage of the temporary price reductions, which usually shifts business from the future to the present (Buzzeli, et al, 1990;sellers, 1992); retailers could resist Everyday Low Pricing (EDLP) program by manufacturers (Manning, 1994) and the retailer never spends advertising accruals (Everett, 1987;Blakkhan, 1983) and could be diverted (Berry, 1992;Hoyt, 1996) while a vast majority of retailers think that trade promotions should serve to increase sales and profits of entire product categories without concern for whether a manufacturer's specific brand benefits from the trade promotion (Hoyt, 1997). Fortunately for the trade, these abuses are being checked (Abraham and Lodish, 1990;Neff, 1995) The major types of trade allowances are slotting allowance (Hoyt, 1997;Cannon and Bloom, 1991;Liessie, 1990;Benezra, 1995;Wilkie, et al, 2002;Ante, 1989;Tienowitz, 1999;Bloom, et al, 2000); bill-back allowances, exit fees, drop-ship allowance, co-operative advertising (Elkin, 1999;Rigg, 1990) etc.…”

Section: Trade Allowancementioning

confidence: 99%

Trade Sales Promotion Strategies and Marketing Performance in the Soft Drink Industries in Nigeria

Michael¹,

Ogwo²

2013

IJMS

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Rapid changes in technology, over production, shortened product life cycles, increased competition owing to reduced barriers to domestic and international trade, mass communication and globalization have all contributed to the need for a firm to have distinctive capabilities; which create a competitive advantage over others. We are inclined to believe that fully utilized, competent and well-articulated trade sales promotion strategies constitute a competitive advantage. With the notion that trade sales promotion strategies positively correlates with marketing performance, firms view trade sales promotion strategy incompetence with grave concern. The effect of poor trade promotion strategy performance is not limited to firms alone since organizations can and do experience sub-optimal or out-right poor performance; but also to the economy as a whole. The aggregate business performance of a country's economic unit shapes its economy, since a nation's wealth is measured mostly in terms of its GDP. Among the factors critical to business profitability; fresh concerns about the efficacy of trade promotion strategies is sparsely researched. This informs the research interest in this regard, recognizing the unique role of trade sales promotion strategies that distinguishes it from other marketing communication methods, and its critical roles in pushing and creating traffic for the manufacturer's product. With a survey research design, a regression model was formulated to incorporate eleven hypotheses of interests. Quantitative data were collected through a 5-point Likert-type scale questionnaire. A total of 234 copies of questionnaire were completed by senior promotion and sales executives of two major soft drink manufacturing firms and their accredited distributors in Nigeria. We adopted Pearson's 'r' and stepwise regression with its constituents-ANOVA and T-test to determine the trade sales promotion activities that actually influence marketing performance activities in these firms. Two of the hypothesized trade sales promotion strategies were retained and adjudged relevant in determining marketing performance levels. Our findings reveal that Trade promotion strategies affect marketing performance through the use of trade allowances and trade contests. Notwithstanding this fact, the study notes that the firms are not at their optimal levels in both their trade promotion strategies and marketing performance. We therefore recommend that for optimal levels to be achieved, they should adopt trade promotion strategies that emphasize trade allowances and trade contests.

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“…While manufacturers and retailers agree that the number of new products introduced is a key force in the widespread use of slotting fees (Wilkie et al 2002;Bloom et al 2000), Bloom et al (2000) find that retailers do not believe that slotting fees are related to the opportunity cost of shelfspace. Wilkie et al (2002) also find no support for the growth of private label brands as a rationale for the growth of slotting allowances. Basically, in these survey-based studies, it appears that retailers do not want to accept their role in the emergence of slotting allowances, but want to blame manufacturers.…”

Section: A1 Slotting Allowances Help Efficient Allocation Of Scarce mentioning

confidence: 99%

“…But slotting allowances are extremely controversial and there is very little consensus either among practitioners, regulators or researchers as to the true role of slotting allowances in facilitating new product introductions (Bloom et al 2000 andGundlach et al 2002). While some theorists and practitioners have suggested that slotting allowances are anti-competitive, others have argued that slotting allowances serve to enhance efficiency of market outcomes.…”

Section: Introductionmentioning

confidence: 99%

“…Two survey-based studies (Bloom et al 2000 andGundlach et al 2002) show limited consensus between manufacturers and retailer on the reasons for the use of slotting allowances. The problem may be due to the use of the survey method; Bloom et al (2000) acknowledge the limitations of survey method when they state: " …although an anonymous survey targeted towards informed industry participants was used, manager perceptions, for a variety of reasons, may not accurately reflect reality and their opinions about slotting fees.…”

Section: Introductionmentioning

confidence: 99%

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