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New product procurement behavior of us supermarket chains: Implications for food and agribusiness suppliers

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  • Edward W. McLaughlin

    (Associate Professor of Marketing, Food Industry Management Program in the Department of Agricultural Resource and Managerial Economics, Cornell University)

  • Peter Fredericks

    (Food Industry Management Program, Cornell University)

Abstract

The introduction of new products to US supermarket chains represents a strategic area of business conduct with significant economic implications for agribusiness companies, food manufacturers and retailers, and consumers. Development of new products by manufacturers and their subsequent evaluation by retailers absorbs enormous resources in the grocery distribution system. This research examined new product buying practices in the top 200 US supermarket chains. Typical findings show the reasons that nearly 70% of all newly introduced products are rejected by buyers and never make it to store shelves and approximately one-half of newly accepted products are removed from stores within 1 year. This study demonstrates that a food or agribusiness firm must first understand the standard procedures, wants and needs, of the key “gatekeeper” buyer before focusing on the final consumer. ©1994 by John Wiley & Sons, Inc.

Suggested Citation

  • Edward W. McLaughlin & Peter Fredericks, 1994. "New product procurement behavior of us supermarket chains: Implications for food and agribusiness suppliers," Agribusiness, John Wiley & Sons, Ltd., vol. 10(6), pages 481-490.
    • Handle: RePEc:wly:agribz:v:10:y:1994:i:6:p:481-490
    DOI: 10.1002/1520-6297(199411/12)10:6<481::AID-AGR2720100605>3.0.CO;2-H
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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.
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    Cited by:

    1. 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.
    2. 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.

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