The Moderating Roles of Relationship Quality and Dependency in Retailers New Product Adoption Decisions

47 Pages Posted: 3 Nov 2008

See all articles by Yvonne M. van Everdingen

Yvonne M. van Everdingen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Laurens Sloot

Erasmus University Rotterdam (EUR) - Erasmus Food Management Institute

Peter C. Verhoef

University of Groningen - Department of Marketing & Marketing Research

Date Written: 24 2008, 10

Abstract

This study contributes to the retail adoption literature by explicitly focusing on the role of both profit-related and relationship variables in explaining new product adoption decisions by retailers, instead of considering either one of these groups of variables in isolation as has been done by previous retail adoption studies. Moreover, it specifically addresses how both relationship quality and a retailers dependence on the manufacturer moderate the effect of profit drivers. Using a sample of 392 new product adoption decisions by four Dutch retailers, the authors estimate a random effects logit model to explain adoption decisions. The results show significant positive main effects of gross margin, consumer support, product uniqueness, relationship quality and the retailers dependency on the manufacturer on the adoption decision. Moreover, the authors find that improved relationship quality tends to reduce the importance of both gross margin and consumer support in the adoption decision process, but surprisingly leads to a stronger impact of trade support. The moderating effect of the retailers dependence on the manufacturer also differs between profit drivers, such that it decreases the positive impact of gross margin, consumer support and product uniqueness, and it increases the negative effect of store brand cannibalization.

Keywords: adoption, power, store brands, relationship marketing, logit model, retail

JEL Classification: C44, M31, M

Suggested Citation

van Everdingen, Yvonne M. and Sloot, Laurens and Verhoef, Peter C., The Moderating Roles of Relationship Quality and Dependency in Retailers New Product Adoption Decisions (24 2008, 10). ERIM Report Series Reference No. ERS-2008-065-MKT. Available at SSRN: https://ssrn.com/abstract=1290933

Yvonne M. Van Everdingen (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Laurens Sloot

Erasmus University Rotterdam (EUR) - Erasmus Food Management Institute ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1307 (Phone)
+31 10 408 9160 (Fax)

Peter C. Verhoef

University of Groningen - Department of Marketing & Marketing Research ( email )

Netherlands

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