Paul N. Bloom

Slotting allowances and fees : schools of thought and the views of practicing managers

Slotting allowances and fees have attracted considerable attention and controversy since their introduction in the mid-1980s. Currently, two schools of thought dominate the debate on these fees. One considers them a tool for improving distribution efficiency, whereas the other proposes that the fees operate as a mechanism for enhancing market power and damaging competition. Managers and public policymakers are uncertain as to the effects of slotting fees and the appropriate strategy to adopt. The current study attempts to inform the debate surrounding slotting fees and provide guidance to managers and policymakers. The authors summarize the arguments of the two schools and investigate the views of managers toward them through a large-scale survey of manufacturer, wholesaler, and retailer grocery institutions. Though exploratory, the findings suggest that slotting fees shift the risk of new product introductions and help apportion the demand and supply of new products. The authors find that slotting fees are also associated with the exercise of retailer market power, are applied in a discriminatory fashion, and lead to higher retail prices. The authors encourage further research that examines slotting fees and their effects and indicate prospective directions.

Retailer power and supplier welfare

Abstract Whether retailers have become more powerful than manufacturers in recent years continues to be a burning question in the trade press and academic literature. Our research adds fresh fuel to the fire by looking at whether Wal-Mart, the largest retailer in the United States, has exerted power over its suppliers and squeezed them financially. Previous academic research on retailer power has looked largely at food stores, but we extend this perspective into nonfoods by using Compustat data as a source. Our analysis of these data indicates that the answer may be more complex than a simple yes or no. We find that Wal-Mart suppliers holding a small share of their respective markets do not perform relatively as well financially when they have Wal-Mart as one of their primary customers. However, large-share suppliers to Wal-Mart perform better than their large-share counterparts reporting retailers other than Wal-Mart as their primary customers. This indicates that suppliers who seek Wal-Mart’s wide market reach may derive benefits from using this association if it can be used to strengthen their market positions. Those that fail in this goal, however, may find their profits squeezed and do better by shifting their retail channel focus elsewhere.

Scaling Social Entrepreneurial Impact

Successful scaling of social impact by a social entrepreneurial organization is driven by its capabilities in seven areas, identified in this article by using the acronym SCALERS: Staffing, Communicating, Alliance-building, Lobbying, Earnings-generation, Replicating, and Stimulating market forces. The relative importance of each of these capabilities in driving scaling will depend on several situational contingencies, such as the labor needs of the organization or the public support attracted by its causes or programs. The article presents the logic, theory, and prior research that support the SCALERS model and cites examples of case experiences that are consistent with the model.

Identifying the Drivers of Social Entrepreneurial Impact: Theoretical Development and an Exploratory Empirical Test of Scalers

Abstract The scaling of social entrepreneurial impact is an important issue in the field of social entrepreneurship. While researchers have focused relatively little theoretical and empirical attention on scaling, a recently proposed set of drivers of scaling – incorporated into what has been labeled the SCALERS model – may provide guidance for new theoretical and empirical work on scaling of social impact. In this study, prior work on the drivers of scaling is extended by adding to the theoretical foundations upon which the SCALERS model is developed and by providing an initial empirical test of the SCALERS model. Initial empirical support is found for the SCALERS model of scaling social entrepreneurial impact.

Does Marketing Products as Remedies Create 'Get Out of Jail Free Cards?'

Our research investigates the marketing of preventive and curative “remedies” (products and services that offer ways of mitigating risk by decreasing either its likelihood or severity). Examples include debt consolidation loans and smoking cessation aids. Like risk-avoidance messages, advertisements for remedies aim to reduce risk—by advocating the use of the branded product or service promoted by the marketer. In a series of experiments, we demonstrate that remedy messages undermine risk perceptions and increase risky behavioral intentions as consumer problem status rises. Ironically, remedies undermine risk avoidance among those most at risk—a boomerang effect with negative consequences for consumer welfare.

Should Recommendation Agents Think Like People

Electronic recommendation agents have the potential to increase the level of service provided by firms operating in the online environment. Recommendation agents assist consumers in making product decisions by generating rank-ordered alternative lists based on consumer preferences. However, many of the online agents currently in use rank options in different ways than the consumers they are designed to help. Two experiments examine the role of similarity between an electronic agent and a consumer, in terms of actual similarity of attribute weights and perceived similarity of decision strategies, on the quality of consumer choices. Results indicate that it helps consumers to use a recommendation agent that thinks like them, either in terms of attribute weights or decision strategies. When agents are completely dissimilar, consumers may be no better, and sometimes worse off, using an agent’s ordered list than if they simply used a randomly ordered list of options.

Using information situations to guide marketing strategy

Learning about whether target markets face search, experience, or credence situations when assessing a company′s product or service can help in formulating more effective marketing strategies. Depending on the information situation of the targets, a company may want to vary the information content and amount of its advertising, its use of brand names and warranties, its emphasis on personal selling, and other elements of its marketing program. Offers several propositions to guide marketing decision making.

Understanding Stakeholder Responses to Corporate Citizenship Initiatives: Managerial Guidelines and Research Directions

Firms are increasingly devoting attention to corporate citizenship initiatives. Despite the great interest in these initiatives, there is little academic research on their potential effects to guide managerial decisions. This article draws on theories from the consumer behavior literature to identify how socially oriented programs can foster both consumer and employee engagement, while also improving the welfare of society at-large and the financial fortunes of companies. In doing so, the authors advance a research agenda and offer prescriptive managerial advice.

A randomized trial comparing the effects of self-help materials and proactive telephone counseling on teen smoking cessation.

We conducted a 2-arm randomized trial to test the efficacy of self-help materials with or without proactive telephone counseling to increase cessation among teen smokers. Teen smokers (N = 402) recruited from 11 shopping malls and 1 amusement park in the southeastern United States were randomized to 1 of 2 groups: written self-help material plus video; or written self-help material, video, and telephone counseling. Cessation rates based on 7-day point-prevalent abstinence for the self-help and counseling arms were 11% and 16%, respectively (p = .25), at 4 months postbaseline and 19% and 21%, respectively (p = .80), at 8 months postbaseline. Sustained abstinence, reflecting 7-day abstinence at both time points, in the self-help and counseling arms was 7% and 9% (p = .59). Results suggest that minimal self-help cessation approaches that target youth have comparable success to that shown among adult smokers. However, refinements in telephone-counseling approaches may be needed to achieve the success observed in adult populations.

Overcoming Consumption Constraints Through Social Entrepreneurship

This essay examines the potential of social entrepreneurship efforts to contribute to poverty alleviation. In analyzing this potential, the author pays particular attention to the roles of marketing thinking and academic research in supporting social entrepreneurial initiatives to combat poverty.