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KAM Effectiveness and Future Performance Risk for FMCG Companies. Underlying Risks of KAM

In: Advances in National Brand and Private Label Marketing

Author

Listed:
  • Pedro Rubio

    (Universidad Pontificia Comillas)

  • María Eugenia Fabra

    (Universidad Pontificia Comillas)

  • Victoria Labajo

    (Universidad Pontificia Comillas)

Abstract

Research into the benefits of developing Key Account Management programs for FMCG manufacturers has been extensively performed, but not—considering the underlying risks—with the precision given by incorporating a significant quantitative sample. There is room for further research, particularly in cases where retailer concentration is high and where both customers’ negotiation power and private labels’ market share are growing: all of which increases the difficulties for suppliers aiming for success in innovation. Using structural equation modeling with a sample of 219 FMCG professionals involved in KAM, this paper seeks to verify the relationship between the development of KAM programs and the risks it implies for future performance. The conclusion should provide further reflection for scholars and FMCG manufacturers: are FMCG companies generating a future performance risk by focussing on KAM programs and reinforcing KAM effectiveness? If so, would it be possible for them to control the side effects of accelerating the strengthening of key accounts?

Suggested Citation

  • Pedro Rubio & María Eugenia Fabra & Victoria Labajo, 2018. "KAM Effectiveness and Future Performance Risk for FMCG Companies. Underlying Risks of KAM," Springer Proceedings in Business and Economics, in: Francisco J. Martínez-López & Juan Carlos Gázquez-Abad & Alexander Chernev (ed.), Advances in National Brand and Private Label Marketing, pages 75-84, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-92084-9_9
    DOI: 10.1007/978-3-319-92084-9_9
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