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

Laurens M. Sloot and Peter C. Verhoef

Journal of Retailing, 2008, vol. 84, issue 3, 281-296

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.

Keywords: Retailing; Brand management; Brand equity; Category management; Store loyalty; Brand loyalty; Retail power; Private labels (search for similar items in EconPapers)
Date: 2008
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