RETAIL MANAGEMENT AND E-
COMMERCE
Summary of all obligatory papers
MSC Marketing
Academic year 2021 – 2022, period 2
VU Amsterdam School of Business and Economics
Tutor: Yuri Peers
Victor Van der leij
,Inhoud
Dawar & Stornelli (2013):...................................................................................................................2
Geykens et al.: united we stand: the impact of buying groups on retailer productivity...................13
Kranzbühler et al., (2018): outsouring the pain, keeping the pleasure: effects of outsourced
touchpoints in the customer journey...............................................................................................22
Mu & Zhang: seller marketing capability, brand reputation, and consumer journeys on e-commerce
platforms..........................................................................................................................................28
Homburg et al. (2019): The multichannel pricing dilemma: do consumer accept higher offline than
online prices?...................................................................................................................................34
Christoffer and Machado (2018): Consumer response to design variations in pay-what-you-want
pricing...............................................................................................................................................42
Bombaij et al. (2018): when do loyalty programs work? The moderating role of design, retailers-
strategy, and country characteristic.................................................................................................49
Fong et al. (2015): Geo-conquesting: competitive locational targeting of mobile promotion..........57
Gielens: New products: the antidote to private label growth..............................................................61
Jindal et al (2020): Marketing-mix response across retailer formats: the role of shopping trip types.
..........................................................................................................................................................68
Biswas et al. (2017): Sounds like a healthy retail atmospheric strategy: effects of ambient music on
background noise on foods sales......................................................................................................76
Bleier et al. (2018): Creating effective online customer experiences...............................................79
Bell et al: offline showrooms in omnichannel retail: demand and operational benefits..................86
Narang & Shankar: Mobile introduction and online and offline purchases and product returns.....91
Shi et al. (20116): The impact of retail format diversification on retailers’ financial performance. .97
Gielens & DeKimpe: Do international entry decisions of retail chains matter in the long run........103
Inman & Nikolova: Shopper-facing retail technology: A retailer adoption decision framework
incorporating shopper attitudes and privacy concerns..................................................................109
,Dawar & Stornelli (2013):
Rebuilding the relationship between manufacturers and retailers
Retailers are winning the ever ongoing tug-of-war with manufacturers. Their ability to capture loyalty
and create relationships with customers (online and offline) has given them the edge over
manufacturers. Because retailers can manipulate and control the market, manufacturers need to
understand what makes the retailers tick.
Manufactures understand the strength of the retailers. Therefore, they routinely allocate two-thirds
or more of their marketing budget to:
- Trade marketing: marketing aimed at communicating trough the retailers.
- In-store promotion
- Cooperative advertising
Where as before, they would have tried to create brand relationships trough media.
The authors examined if there was a better way for manufacturers and retailers to manage their
damaged relationships. They used a lot of secondary data but also conducted in-depth interviews
themselves. They found that retailers have a much broader choice of business models than
manufacturers. The authors tried to find the best business models for manufacturers and they found
evidence for the effectiveness of these models. Their final findings show the importance of trade
segmentation on multiple levels. Manufacturers should segment their channel partners according to
business models, enabling them to pursue differentiated strategies for bargaining at the table.
In short, the authors believe that manufacturers have the ability to rebuild the relationship by
understanding the retailers’ businessfolk.
Retailers business model Retailers strategy Ways to deliver
Information driven Seeks to use information about 1. Deeply understand
customers to get efficient knowledge of the product
targeting and growth and category -> go beyond the
understand their relationship retailers’ loyalty incentive.
with the customer. 2. Take advantage of joint-
loyalty opportunities to
strengthen customer-
manufacturer relationship.
Private label Increase profitability by selling 1. Assist retailers in ways that
higher-margin private label don’t hurt your
products + use these to create (manufacturers) core brand.
brand differentiation. 2. Help create a unique brand
3. Co-branding
Working capital Uses working capital as source 1. Adopt measures to quicken
of financial income -> supply chain -> allows for
optimizes time between good retailers to accelerate
sold and retailers payment to inventory returns.
the manufacturer. 2. Minimize inventory costs
3. Offer early payment
discounts
Margin-focussed Drive down costs and 1. Use traditional advertising
maximize margin per unit sold. (invoice discount, forward
buying)
2. Use special packs for
retailers that focus on reducing
, margins for them
The information model: relies on consumer information. Particularly important in consumer
packaged goods because of their purchase frequency. Based on this information, a retailer can
streamline their sourcing and inventory, target their communications and make their promotions
much more efficient. This is done via a loyalty program -> consumers get discounts or rewards in
return for information.
The opportunity for manufacturers is to focus on “the bigger picture”. Manufacturers have
information that help retailers use information more effectively. Retailers info is limited to what
happens in their store. For example, Kraft Food works with retailers on a long-term study of product
organisation -> increased sales and created a cooperative joint-merchandising that were also
effective. Finally, brands with strong equity (Coca-Cola) can build their own loyalty program and used
them collaboratively with retailers.
The private label-model: Private label product are increasingly popular products. For these private-
label focussed retailers, retaining innovation and product quality is essential. Still too much private-
label brand can also hurt retailers.
Innovative partnering: Manufacturers should consider partnering with retailers to produce private-
labels products. Manufacturers that product private labels can encourage retailers to position the
private label to compete with other national brands and differentiate their own products with
distinctive packaging, products sizes and quantities. Manufacturers should not worry about if their
product will be overwhelmed by the other private-label products.
Cobranding opportunities: an example is an Ice cream brand contains pieces of Nestlé cookies. With
cobranding, the retailers benefits by showing its uniqueness and quality, the national brand gets to
promote its brand. Retailers wanting to broaden their offering into uncharted areas (ethic, bio,
vegan) can benefit from a manufacturer with extensive knowledge about this new product category.
The working capital model: all retailers want optimal processes, but some really strongly focus on it.
Manufacturers can meet these needs by focussing on programs that fit with retailers that are most
concerned with working capital efficiency. Manufacturers should look for two simple cues:
1. Does the retailer have a working capital gap (does it sell goods faster than it pays for them)?
2. Is this gap the results of efficient operations or because of delayed payment to the suppliers?
Faster selling cycles: if retailers make sure that they can sell quickly, they have less operating cash, it
can pay it’s suppliers more quickly and capture early payment discounts. Manufacturers have an
opportunity to design programs to meet the working capital needs of retailers and to focus on these
programs on those retailers that are most concerned with working capital efficiency.
Payment flexibility: if you sell quickly (for example, Costco’s store typically carry fewer than 4000
stock keeping units), a retailer is managing its working capital well. These retailers can worry about
being stuck with an inventory. Manufacturers can provide market intelligence, sales guidance and
buyback programs. Selling to retailers focused on managing working capital is not easy; it requires
both financial and inventory efficiency. But developing a programs that fit’s the retailers’ need for
quick stock movement and payment flexibility can give great results.
*working capital: working capital is an indicator of the short-term financial position of an
organisation. It can also show the overall efficiency of a company. The working capital shows
whether a company possesses sufficient assets to cover its short-term debt.
COMMERCE
Summary of all obligatory papers
MSC Marketing
Academic year 2021 – 2022, period 2
VU Amsterdam School of Business and Economics
Tutor: Yuri Peers
Victor Van der leij
,Inhoud
Dawar & Stornelli (2013):...................................................................................................................2
Geykens et al.: united we stand: the impact of buying groups on retailer productivity...................13
Kranzbühler et al., (2018): outsouring the pain, keeping the pleasure: effects of outsourced
touchpoints in the customer journey...............................................................................................22
Mu & Zhang: seller marketing capability, brand reputation, and consumer journeys on e-commerce
platforms..........................................................................................................................................28
Homburg et al. (2019): The multichannel pricing dilemma: do consumer accept higher offline than
online prices?...................................................................................................................................34
Christoffer and Machado (2018): Consumer response to design variations in pay-what-you-want
pricing...............................................................................................................................................42
Bombaij et al. (2018): when do loyalty programs work? The moderating role of design, retailers-
strategy, and country characteristic.................................................................................................49
Fong et al. (2015): Geo-conquesting: competitive locational targeting of mobile promotion..........57
Gielens: New products: the antidote to private label growth..............................................................61
Jindal et al (2020): Marketing-mix response across retailer formats: the role of shopping trip types.
..........................................................................................................................................................68
Biswas et al. (2017): Sounds like a healthy retail atmospheric strategy: effects of ambient music on
background noise on foods sales......................................................................................................76
Bleier et al. (2018): Creating effective online customer experiences...............................................79
Bell et al: offline showrooms in omnichannel retail: demand and operational benefits..................86
Narang & Shankar: Mobile introduction and online and offline purchases and product returns.....91
Shi et al. (20116): The impact of retail format diversification on retailers’ financial performance. .97
Gielens & DeKimpe: Do international entry decisions of retail chains matter in the long run........103
Inman & Nikolova: Shopper-facing retail technology: A retailer adoption decision framework
incorporating shopper attitudes and privacy concerns..................................................................109
,Dawar & Stornelli (2013):
Rebuilding the relationship between manufacturers and retailers
Retailers are winning the ever ongoing tug-of-war with manufacturers. Their ability to capture loyalty
and create relationships with customers (online and offline) has given them the edge over
manufacturers. Because retailers can manipulate and control the market, manufacturers need to
understand what makes the retailers tick.
Manufactures understand the strength of the retailers. Therefore, they routinely allocate two-thirds
or more of their marketing budget to:
- Trade marketing: marketing aimed at communicating trough the retailers.
- In-store promotion
- Cooperative advertising
Where as before, they would have tried to create brand relationships trough media.
The authors examined if there was a better way for manufacturers and retailers to manage their
damaged relationships. They used a lot of secondary data but also conducted in-depth interviews
themselves. They found that retailers have a much broader choice of business models than
manufacturers. The authors tried to find the best business models for manufacturers and they found
evidence for the effectiveness of these models. Their final findings show the importance of trade
segmentation on multiple levels. Manufacturers should segment their channel partners according to
business models, enabling them to pursue differentiated strategies for bargaining at the table.
In short, the authors believe that manufacturers have the ability to rebuild the relationship by
understanding the retailers’ businessfolk.
Retailers business model Retailers strategy Ways to deliver
Information driven Seeks to use information about 1. Deeply understand
customers to get efficient knowledge of the product
targeting and growth and category -> go beyond the
understand their relationship retailers’ loyalty incentive.
with the customer. 2. Take advantage of joint-
loyalty opportunities to
strengthen customer-
manufacturer relationship.
Private label Increase profitability by selling 1. Assist retailers in ways that
higher-margin private label don’t hurt your
products + use these to create (manufacturers) core brand.
brand differentiation. 2. Help create a unique brand
3. Co-branding
Working capital Uses working capital as source 1. Adopt measures to quicken
of financial income -> supply chain -> allows for
optimizes time between good retailers to accelerate
sold and retailers payment to inventory returns.
the manufacturer. 2. Minimize inventory costs
3. Offer early payment
discounts
Margin-focussed Drive down costs and 1. Use traditional advertising
maximize margin per unit sold. (invoice discount, forward
buying)
2. Use special packs for
retailers that focus on reducing
, margins for them
The information model: relies on consumer information. Particularly important in consumer
packaged goods because of their purchase frequency. Based on this information, a retailer can
streamline their sourcing and inventory, target their communications and make their promotions
much more efficient. This is done via a loyalty program -> consumers get discounts or rewards in
return for information.
The opportunity for manufacturers is to focus on “the bigger picture”. Manufacturers have
information that help retailers use information more effectively. Retailers info is limited to what
happens in their store. For example, Kraft Food works with retailers on a long-term study of product
organisation -> increased sales and created a cooperative joint-merchandising that were also
effective. Finally, brands with strong equity (Coca-Cola) can build their own loyalty program and used
them collaboratively with retailers.
The private label-model: Private label product are increasingly popular products. For these private-
label focussed retailers, retaining innovation and product quality is essential. Still too much private-
label brand can also hurt retailers.
Innovative partnering: Manufacturers should consider partnering with retailers to produce private-
labels products. Manufacturers that product private labels can encourage retailers to position the
private label to compete with other national brands and differentiate their own products with
distinctive packaging, products sizes and quantities. Manufacturers should not worry about if their
product will be overwhelmed by the other private-label products.
Cobranding opportunities: an example is an Ice cream brand contains pieces of Nestlé cookies. With
cobranding, the retailers benefits by showing its uniqueness and quality, the national brand gets to
promote its brand. Retailers wanting to broaden their offering into uncharted areas (ethic, bio,
vegan) can benefit from a manufacturer with extensive knowledge about this new product category.
The working capital model: all retailers want optimal processes, but some really strongly focus on it.
Manufacturers can meet these needs by focussing on programs that fit with retailers that are most
concerned with working capital efficiency. Manufacturers should look for two simple cues:
1. Does the retailer have a working capital gap (does it sell goods faster than it pays for them)?
2. Is this gap the results of efficient operations or because of delayed payment to the suppliers?
Faster selling cycles: if retailers make sure that they can sell quickly, they have less operating cash, it
can pay it’s suppliers more quickly and capture early payment discounts. Manufacturers have an
opportunity to design programs to meet the working capital needs of retailers and to focus on these
programs on those retailers that are most concerned with working capital efficiency.
Payment flexibility: if you sell quickly (for example, Costco’s store typically carry fewer than 4000
stock keeping units), a retailer is managing its working capital well. These retailers can worry about
being stuck with an inventory. Manufacturers can provide market intelligence, sales guidance and
buyback programs. Selling to retailers focused on managing working capital is not easy; it requires
both financial and inventory efficiency. But developing a programs that fit’s the retailers’ need for
quick stock movement and payment flexibility can give great results.
*working capital: working capital is an indicator of the short-term financial position of an
organisation. It can also show the overall efficiency of a company. The working capital shows
whether a company possesses sufficient assets to cover its short-term debt.
