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Supermarket Product Selection Uncovered: Manufacturer Promotions And The Channel Intermediary

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  • Park, John L.

Abstract

In 1998, food and packaged goods manufacturers presented 17,977 new items for evaluation by channel intermediaries (grocery buyers, merchandisers, and category managers). This product selection process is recognized as a time and labor intensive effort on the part of manufacturers and their retail counterparts. Ultimately, only one-third of these new product introductions may be accepted for distribution. Thus, manufacturers may benefit from increased insight to the channel intermediary's criteria for deciding which products to stock in their retail stores. It is suggested that this decision may be influenced by the presence of certain promotional and cash offerings, and this issue is examined in a logistic regression.

Suggested Citation

  • Park, John L., 2001. "Supermarket Product Selection Uncovered: Manufacturer Promotions And The Channel Intermediary," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(2), pages 1-13.
    • Handle: RePEc:ags:ifaamr:34461
    DOI: 10.22004/ag.econ.34461
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    References listed on IDEAS

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    1. Edward W. McLaughlin & Vithala R. Rao, 1990. "The Strategic Role of Supermarket Buyer Intermediaries in New Product Selection: Implications for Systemwide Efficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 358-370.
    2. Wujin Chu, 1992. "Demand Signalling and Screening in Channels of Distribution," Marketing Science, INFORMS, vol. 11(4), pages 327-347.
    3. Sullivan, Mary W, 1997. "Slotting Allowances and the Market for New Products," Journal of Law and Economics, University of Chicago Press, vol. 40(2), pages 461-493, October.
    4. Park, John L. & German, Gene A., 2000. "A Retail Evaluation Of Promotional Tactics In The Food Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(2), pages 1-9, July.
    5. Greg Shaffer, 1991. "Slotting Allowances and Resale Price Maintenance: A Comparison of Facilitating Practices," RAND Journal of Economics, The RAND Corporation, vol. 22(1), pages 120-135, Spring.
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    Cited by:

    1. Edward C. Jaenicke & R. Wesley Harrison & Kimberly L. Jensen & Paul M. Jakus, 2006. "Follow the leader? Adoption behavior in food retailers' decision to offer fresh irradiated ground beef," Agribusiness, John Wiley & Sons, Ltd., vol. 22(4), pages 547-568.
    2. Insch, Andrea & Prentice, Rebecca S. & Knight, John G., 2011. "Retail buyers’ decision-making and buy national campaigns," Australasian marketing journal, Elsevier, vol. 19(4), pages 257-266.
    3. Jaenicke, Edward C. & Chikasada, Mitsuko, 2006. "Separate Decision-Making for Supermarket Leaders and Followers: The Case of Whether or Not to Offer Irradiated Ground Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(3), pages 1-15, November.
    4. Jaenicke, Edward C. & Harrison, R. Wes & Jensen, Kimberly L. & Jakus, Paul M., 2005. "Adoption Behavior in Food Retailers' Decision to Offer Fresh Irradiated Ground Beef," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24680, European Association of Agricultural Economists.

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