Els Breugelmans

The clash of the titans: on retailer and manufacturer vulnerability in conflict delistings

The days of dominant manufacturers dictating the game to obedient retailers are long gone. When parties believe they have equal bargaining power, negotiations end in deadlock more frequently and result in conflict delistings wherein the manufacturers’ brands get removed from the retailers’ assortments. This might cause major sales losses as consumers are forced to change stores or brands. The authors study both parties’ vulnerabilities by investigating their market share shifts during a highly publicized real-life conflict delisting executed by a major retailer against a major manufacturer, involving multiple brands and categories. Generally, both parties lost sales, yet the retailer was the most vulnerable party. Manufacturer-brand and retailer-assortment characteristics moderated both parties’ vulnerability: the manufacturer and retailer became respectively less and more vulnerable when a high-equity brand was delisted in a small assortment. Both parties lost more in necessity than in impulse categories. The authors additionally investigate long-term consequences that occurred after the conflict was settled: the retailers market share recovered to the predelisting level, whereas the manufacturers share underwent a long-term level rise.

The Effects of Shelf Display on Online Grocery Choices

Research on shelf effects in traditional grocery stores has shown that a products absolute and relative shelf position may strongly affect consumer choices. In this paper, we examine whether and how such shelf effects translate into an online grocery context. We find that a products choice probability increases when presented on the first screen or located near focal items - especially when the latter are out-of-stock. These primacy and proximity effects have a stronger impact on choice decisions when assortments are more difficult to evaluate and when a clear shelf organization facilitates the use of shelf-based choice heuristics.

Can In-Store Displays Improve Category Sales and Brand Market Share in Online Stores? A Study on the Overall Effectiveness and Differences between Display Types in an Online FMCG Context

Our study investigates the overall effects of in-store displays (ISD) on category sales and brand market share in an online shopping context, and compares the differences in effectiveness between ISD types. Using data from an online grocer, we examine three online ISD types that match with traditional ones: first screen (entrance), banner (end-of-aisle) and shelf tag (in-aisle) displays. Empirical results for 10 categories confirm that online ISD may substantially increase brand market share and to a lesser extent, category sales. Our results also demonstrate that not all types are equally effective. First screen displays clearly have the strongest effect on market share: they benefit from their placement on the ‘entrance’ location, central on-screen position and direct purchase link. While they only feature 1 SKU, banner displays typically feature all SKUs of a brand, yet, are placed on border-screen positions on traveling-zone pages without a direct purchase link. Based on our results, the advantage of banner displays does not weigh up against the advantages of first screen displays in most cases. Shelf tags, finally, may be very useful in attracting attention to interesting promotions, but appear to have no or at most a limited effect on their own.