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The Impact of Brand Delisting on Store Switching and Brand Switching Intentions

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  • Sloot, Laurens M.
  • Verhoef, Peter C.

Abstract

A tool retailers often use to improve their negotiating position with brand manufacturers is to delist – or threaten to delist – the manufacturers’ brand. Because brand manufacturers rely mainly on retailers to sell their products to consumers, a brand delisting will cause a sales loss for the brand manufacturer. Therefore, many brand manufacturers feel enormous pressure to give in and improve buying conditions to favor the retailer. The question thus emerges: Can a brand manufacturer resist a retailer's threat to delist its brand(s)? If a brand delisting severely hurts retail sales, it is easier for a brand manufacturer to resist. The authors study the impact of brand delistings on store switching and brand switching using a controlled online experiment and in-store shopper survey. They develop and test a conceptual model with several antecedents of consumers’ reactions to a brand delisting and conclude that brand equity, market share, and the products’ hedonic level drive store and brand switching.

Suggested Citation

  • Sloot, Laurens M. & Verhoef, Peter C., 2008. "The Impact of Brand Delisting on Store Switching and Brand Switching Intentions," Journal of Retailing, Elsevier, vol. 84(3), pages 281-296.
    • Handle: RePEc:eee:jouret:v:84:y:2008:i:3:p:281-296
    DOI: 10.1016/j.jretai.2008.06.005
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