The Strategic Role of Supermarket Buyer Intermediaries in New Product Selection: Implications for Systemwide Efficiency

Edward W. McLaughlin and Vithala R. Rao

American Journal of Agricultural Economics, 1990, vol. 72, issue 2, 358-370

Abstract: Based on logistic regression models that describe the accept/reject decisions of supermarket buyers for new products and market performance of accepted products, the implications for systemwide efficiency of decision making by channel intermediaries are analyzed. The statistical models perform very well. The results point to areas where systemwide performance may be enhanced regarding the allocation of new product development resources. For example, the system may be potentially more efficient if manufacturers reallocate the promotional allowances directed to the retail trade. Better prediction by retail buyers of ultimate product preference by their consumers is likely to increase both firm and system efficiency.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:72:y:1990:i:2:p:358-370.

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