Market sanctions, monitoring and vertical coordination within retailer‐manufacturer relationships: The case of retail brand suppliers

European Journal of Marketing

Volumn 37, Issue 5-6, 2003, Pages 668-689

  Collins, Alan ^a   Burt, Steve ^b  

^a UNIVERSITY COLLEGE CORK   (Ireland)

^b UNIVERSITY OF STIRLING   (United Kingdom)

Author keywords

Brands; Grocery; Monitoring; Retail trade; Vertical marketing systems

Indexed keywords

EID: 85117551732     PISSN: 03090566     EISSN: None     Source Type: Journal    
DOI: 10.1108/03090560310465080     Document Type: Article

References (82)

1. Alchian, A.A. and Demsetz, H. (1972), “Production, information costs and economic organization”, American Economic Review, Vol. LXII December, pp. 777–95.
2. Bagozzi, R.P., Yi, Y. and Phillips, L.W. (1991), “Assessing construct validity in organizational research”, Administrative Science Quarterly, Vol. 36, pp. 421–58.
3. Brookes, R. (1995), “Recent changes in the retailing of fresh produce: strategic implications for fresh produce suppliers”, Journal of Business Research, Vol. 32, pp. 149–61.
4. Brown, J.R. (1981), “A cross‐channel comparison of supplier‐retailer relations”, Journal of Retailing, Vol. 57 No. 4, pp. 3–18.
5. Brown, J.R., Lusch, R.F. and Meuhling, D.D. (1983), “Conflict and power‐dependence in retailer‐supplier channels”, Journal of Retailing, Vol. 59 No. 4, pp. 53–80.
6. Burt, S. (1992), Retailer Brands in British Grocery Retailing: A Review, Institute for Retail Studies, University of Stirling, Stirling.
7. Burt, S. (2000), “The strategic role of retailer brands in British grocery retailing”, European Journal of Marketing, Vol. 34 No. 8, pp. 875–90.
8. Burt, S. and Davis, S. (1998), “Follow my leader? Lookalike retailer brands in non‐manufacturer dominated product markets in the UK”, International Review of Retail, Distribution and Consumer Research, Vol. 9 No. 2, pp. 163–85.
9. Choe, C. and Fraser, I. (1999), “Compliance monitoring and agri‐environmental policy”, Journal of Agricultural Economics, Vol. 50 No. 3, pp. 468–87.
10. Churchill, G.A. (1979), “A paradigm for developing better measures of marketing constructs”, Journal of Marketing Research, Vol. XVI, February, pp. 64–73.
11. Coase, R. (1937), “The nature of the firm”, Economica, Vol. 4, pp. 386–405.
12. Collins, A. and Burt, S.L. (1999), “Dependency in manufacturer‐retailer relationships: The potential implications of retail internationalisation for indigenous food manufacturers”, Journal of Marketing Management, Vol. 15, November, pp. 673–93.
13. Collins, A., Henchion, M. and O'Reilly, P. (1999), “The impact of coupled consolidation: experiences from the Irish food industry”, Supply Chain Management, Vol. 4 No. 2, pp. 102–11.
14. Corstjens, M. and Lal, R. (2000), “Building store loyalty through store brands”, Journal of Marketing Research, Vol. 37 No. 3, pp. 281–91.
15. Davies, G. (1992), “The two ways in which retailers can be brands”, International Journal of Retail & Distribution Management, Vol. 20 No. 2, pp. 23–34.
16. Davies, G. (1994a), “The delisting of products by retail buyers”, Journal of Marketing Management, Vol. 10, pp. 473–93.
17. Davies, G. (1994b), “Maintaining relationships with retailers”, Journal of Strategic Management, Vol. 2, pp. 189–210.
18. Davies, K., Gilligan, C. and Sutton, C. (1985), “Structural change in grocery retailing: the implications for competition”, International Journal of Physical Distribution & Materials Management, Vol. 15 No. 2, pp. 3–45.
19. Dawson, J.A. and Shaw, S.A. (1989a), “The move to administered vertical marketing systems by British retailers”, European Journal of Marketing, Vol. 23 No. 7, pp. 42–52.
20. Dawson, J.A. and Shaw, S.A. (1989b), “Horizontal competition in retailing and the structure of manufacturer‐retailer relationships”, in Pellegrini, L. and Reddy, S.K. (Eds), Retail and Marketing Channels: Economic and Marketing Perspectives on Producer‐Distributor Relationships, Routledge, London, pp. 49–72.
21. De Chernatony, L. (1989a), “Branding in an era of retailer dominance”, International Journal of Advertising, Vol. 8, pp. 245–60.
22. De Chernatony, L. (1989b), “The impact of the changed balance of power from manufacturer to retailer in the UK packaged groceries market”, in Pellegrini, L. and Reddy, S.K. (Eds), Retail and Marketing Channels: Economic and Marketing Perspectives on Producer‐Distributor Relationships, Routledge, London, pp. 258–73.
23. Doel, C. (1996), “Market development and organisational change: the case of the food industry”, in Wrigley, N. and Lowe, M. (Eds), Retailing, Consumption and Capital: Towards the New Retail Geography, Longman, Harlow.
24. El‐Ansary, A.I. and Stern, L.W. (1972), “Power measurement in the distribution channel”, Journal of Marketing Research, Vol. 9, pp. 47–52.
25. Etgar, M. (1977), “Channel environments and channel leadership”, Journal of Marketing Research, Vol. 14, February, pp. 69–76.
26. Etgar, M. (1978), “Selection of an effective channel control mix”, Journal of Marketing, Vol. 42, July, pp. 53–8.
27. Fearne, A. (1996), Strategic alliances and supply chain management: lessons from the UK, paper presented at the 2nd International Conference on Chain Management in Agri‐ and Food Business, Department of Management Studies, Wageningen Agricultural University, Ede.
28. Fearne, A. (1998), “The evolution of partnerships in the meat supply chain: insights from the British beef industry”, Supply Chain Management, Vol. 3 No. 4, pp. 214–31.
29. Fernie, J. and Pierrel, F.R. (1996), “Own branding in the UK and French grocery markets”, Journal of Product and Brand Management, Vol. 5 No. 3, pp. 48–59.
30. Frazier, G.L. (1983), “On the measurement of interfirm power in channels of distribution”, Journal of Marketing Research, Vol. 20, pp. 158–66.
31. French, J.R. and Raven, B. (1959), “The basis of social power”, in Cartwright, D. (Ed.), Studies in Social Power, University of Michigan, Ann Arbor, MI.
32. Gaski, J.F. (1984), “The theory of power and conflict in channels of distribution”, Journal of Marketing, Vol. 48, Summer, pp. 9–29.
33. Gaski, J.F. (1986), “Interrelations among a channel entity's power sources: impact of the exercise of reward and coercion on expert, referent and legitimate power sources”, Journal of Marketing Research, Vol. 23, February, pp. 62–77.
34. Grant, R.M. (1987), “Manufacturer‐retailer relations: the shifting balance of power”, in Johnson, G. (Ed.), Business Strategy and Retailing, Wiley, Chichester, pp. 43–58.
35. Gujarati, D.N. (1995), Basic Econometrics, McGraw‐Hill, London.
36. Henson, S. and Northen, J. (1997), “Public and private regulation of food safety: the case of the UK fresh meat sector”, in Schiefer, G. and Helbig, R. (Eds), Quality Management and Process Improvement for Competitive Advantage in Agriculture and Food, University of Bonn, Bonn.
37. Henson, S. and Northen, J. (1998), “Economic determinants of food safety controls in supply of retailer own‐branded products in the United Kingdom”, Agribusiness, Vol. 14 No. 2, pp. 113–26.
38. Hobbs, J.E. (1996), “A transaction cost analysis of quality, traceability and animal welfare issues in UK beef retailing”, British Food Journal, Vol. 98 No. 6, pp. 16–26.
39. Hobbs, J.E. and Kerr, W.A. (1992), “Costs of monitoring food safety and vertical co‐ordination in agribusiness: what can be learned from the British Food Safety Act 1990?”, Agribusiness, Vol. 8 No. 6, pp. 575–84.
40. Hobbs, J.E. and Young, L.M. (2000), “Closer vertical co‐ordination in agri‐food supply chains: a conceptual framework and some preliminary evidence”, Supply Chain Management, Vol. 5 No. 3, pp. 131–43.
41. Holleran, E., Bredahlb, M.E. and Zaibetc, L. (1999), “Private incentives for adopting food safety and quality assurance”, Food Policy, Vol. 24, pp. 669–83.
42. Hsieh, D.A. (1983), “A hetroscedasticity‐consistent covariance matrix estimator for time series regressions”, Journal of Econometrics, Vol. 22, pp. 281–90.
43. Hughes, A. (1996), “Retail restructuring and the strategic significance of food retailer's own labels: a UK‐USA comparison”, Environment and Planning A, Vol. 28, pp. 2201–26.
44. Hughes, D. (Ed.) (1994), Breaking with Tradition Building Partnerships and Alliances in the European Food Industry, Wye College Press, Ashford.
45. Hunt, S.D. and Nevin, J.R. (1974), “Power in a channel of distribution: sources and consequences”, Journal of Marketing Research, Vol. 11 May, pp. 186–93.
46. Kaplow, L. and Shavell, S. (1994), “Accuracy in the determination of liability”, Journal of Law and Economics, Vol. 37 No. 1, pp. 1–15.
47. Katsikeas, C., Goode, M.H. and Katsikea, E. (2000), “Sources of power in international marketing channels”, Journal of Marketing Management, Vol. 16 No. 1/3, pp. 185–202.
48. Klein, B. and Murphy, K.M. (1988), “Vertical restraints as contract enforcement mechanisms”, Journal of Law & Economics, Vol. XXXI, October, pp. 256–97.
49. Klein, B., Crawford, R.G. and Alchian, A.A. (1978), “Vertical integration, appropriable rents, and the competitive contracting process”, Journal of Law and Economics, Vol. XXI No. 2, pp. 297–326.
50. Knox, S.D. and White, H.F.M. (1990), “Retail buyers and their fresh produce suppliers: a power or dependency scenario in the UK?”, European Journal of Marketing, Vol. 25 No. 1, pp. 40–52.
51. Kumar, N., Scheer, L.K. and Steenkamp, J.E.M. (1995), “The effects of perceived interdependence on dealer attitudes”, Journal of Marketing Research, Vol. XXXII, August, pp. 348–56.
52. Laaksonen, H. (1994), Own Brands in Food Retailing Across Europe, Oxford Institute of Retail Management, Oxford.
53. Leahy, T. (1987), “Branding: the retailer's viewpoint”, in Murphy, J.M. (Ed.), Branding: A Key Marketing Tool, Macmillan, London.
54. Leahy, T. (1994), “The emergence of retail brand power”, in Stobart, P. (Ed.), Brand Power, Macmillan Press, Guildford.
55. Loader, R. (1997), “Assessing transaction costs to describe supply chain relationships in agri‐food systems”, Supply Chain Management, Vol. 2 No. 1, pp. 23–35.
56. Lusch, R.F. (1976), “Sources of power: their impact on intrachannel conflict”, Journal of Marketing Research, Vol. 13, November, pp. 382–90.
57. McGoldrick, P. (1990), Retail Marketing, McGraw‐Hill, London.
58. McGrath, M. (1995), The Changing Face of Retailer Brands, Institute of Grocery Distribution, Watford.
59. Mohr, J. and Spekman, R. (1994), “Characteristics of partnership success: partnership attributes, communication behaviour, and conflict resolution techniques”, Strategic Management Journal, Vol. 15, pp. 135–52.
60. Molla, A. and Sanchez, M. (1997), “Interfirm influence strategies in marketing channels”, International Review of Retail, Distribution and Consumer Research, Vol. 7 No. 3, pp. 249–62.
61. Nunally, J.C. (1981), Psychometric Theory, McGraw‐Hill, New Delhi.
62. Ogbanna, E. and Wilkinson, B. (1998), “Power relations in the UK grocery supply chain”, Journal of Retailing and Consumer Services, Vol. 5 No. 2, pp. 77–86.
63. Polinski, M. and Shavell, S. (1979), “The optimal trade‐off between the probability and magnitude of fines”, American Economic Review, Vol. 69 No. 5, pp. 880–91.
64. Price, R.A. (1993), “Effects of channel leadership behaviours under different levels of channel member interdependence”, International Review of Retail, Distribution and Consumer Research, Vol. 3 No. 3, pp. 261–78.
65. Rawwas, M.Y.A., Vitell, S.J. and Barnes, J.H. (1997), “Management of conflict using individual power sources: a retailers’ perspective”, Journal of Business Research, Vol. 40, pp. 49–64.
66. Richardson, P.S., Jain, A.S. and Dick, A. (1996), “Household store brand proneness: a framework”, Journal of Retailing, Vol. 72 No. 2, pp. 159–85.
67. Segal‐Horne, S. and McGee, J. (1989), “Strategies to cope with retailer buying power”, in Pellegrini, L. and Reddy, S.K. (Eds), Retail and Marketing Channels: Economic and Marketing Perspectives on Producer‐Distributor Relationships, Routledge, London.
68. Selnes, F. (1998), “Antecedents and consequence of trust and satisfaction in buyer seller relationships”, European Journal of Marketing, Vol. 32 No. 3/4, pp. 305–22.
69. Senker, J.M. (1986), “Technological cooperation between manufacturers and retailers to meet market demand”, Food Marketing, Vol. 2 No. 3, pp. 88–100.
70. Shaw, S.A. (1994), Competitiveness, relationships and the Strathclyde University food project, Journal of Marketing Management, Vol. 10, pp. 391–407.
71. Shaw, S.A., Dawson, J.A. and Blair, L.M. (1992), “The sourcing of retailer brand food products by a UK retailer”, Journal of Marketing Management, Vol. 8, pp. 127–46.
72. Smith, D.L.G. and Sparks, L. (1993), “The transformation of physical distribution in retailing: the example of Tesco plc”, International Review of Retail Distribution and Consumer Research, Vol. 3 No. 1, pp. 35–64.
73. Stump, R.L. and Heide, J.B. (1996), “Controlling supplier opportunism in industrial relationships”, Journal of Marketing Research, Vol. 33, November, pp. 431–41.
74. White, H. (1980), “A hetroscedasticity‐consistent covariance matrix estimator and a direct test for hetroscedasticity”, Econometrica, Vol. 48 No. 4, pp. 817–38.
75. Wileman, A. and Jary, M. (1997), Retail Power Plays: From Trading to Brand Leadership, Macmillan, London.
76. Wilemon, D.L. (1972), “Power and negotiating strategies in marketing channels”, Southern Journal of Business, Vol. 7, February, pp. 71–82.
77. Williamson, O.E. (1975), Markets and Hierarchies: Analysis and Antitrust Implications, Free Press, New York, NY.
78. Williamson, O.E. (1979), “Transaction‐cost economics: the governance of contractual relations”, Journal of Law and Economics, Vol. 22, pp. 233–62.
79. Williamson, O.E. (1985), The Economic Institutions of Capitalism, Free Press, New York, NY.
80. Williamson, O.E. (1991), “Comparative economic organization: the analysis of discrete structural alternatives”, Administrative Science Quarterly, Vol. 36, pp. 269–96.
81. Williamson, O.E. (1996), The Mechanisms of Governance, Oxford University Press, Oxford.
82. Williamson, O.E. and Ouchi, W.G. (1982), “The markets and hierarchies and visible hand perspectives”, in Van De Ven, A.H. and Joyce, W.F. (Eds), Perspectives on Organization and Behavior, John Wiley & Sons, New York, NY, pp. 347–70.