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

Pedro Rubio (), María Eugenia Fabra and Victoria Labajo
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Pedro Rubio: Universidad Pontificia Comillas
María Eugenia Fabra: Universidad Pontificia Comillas

A chapter in Advances in National Brand and Private Label Marketing, 2018, pp 75-84 from Springer

Abstract: 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?

Keywords: Key Account Management; KAM benefits; Customer power; Private label; KAM risks; FMCG (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-92084-9_9

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DOI: 10.1007/978-3-319-92084-9_9

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