Empirical Models of Manufacturer-Retailer Interaction: A Review and Agenda for Future Research

Marketing Letters, Vol. 21, No. 3, pp. 273-285, 2010

Tuck School of Business Working Paper No. 2465625

21 Pages Posted: 14 Jul 2014

See all articles by Kusum L. Ailawadi

Kusum L. Ailawadi

Dartmouth College - Tuck School of Business

Eric Bradlow

University of Pennsylvania - Marketing Department

Michaela Draganska

Drexel University

Vincent R. Nijs

Northwestern University - Department of Marketing

Robert P. Rooderkerk

Rotterdam School of Management, Erasmus University

K. Sudhir

Yale School of Management; Yale University-Department of Economics; Yale University - Cowles Foundation

Kenneth C. Wilbur

University of California, San Diego (UCSD) - Rady School of Management

Jie Zhang

University of Maryland - Robert H. Smith School of Business

Date Written: March 17, 2010

Abstract

The nature of the interaction between manufacturers and retailers has received a great deal of empirical attention in the last 15 years. One major line of empirical research examines the balance of power between them and ranges from reduced form models quantifying aggregate profit and other related trends for manufacturers and retailers to structural models that test alternative forms of manufacturer-retailer pricing interaction. A second line of research addresses the sources of leverage for each party, e.g., trade promotions and their pass-through, customer information from loyalty programs, manufacturer advertising, product assortment in general, and private label assortment in particular. The purpose of this article is to synthesize what has been learned about the nature of the interaction between manufacturers and retailers and the effectiveness of each party’s sources of leverage and to highlight gaps in our knowledge that future research should attempt to fill.

Keywords: channel power, vertical strategic interaction, channel profit, trade promotions, private label

JEL Classification: M30

Suggested Citation

Ailawadi, Kusum L. and Bradlow, Eric and Draganska, Michaela and Nijs, Vincent R. and Rooderkerk, Robert P. and Sudhir, K. and Wilbur, Kenneth C. and Zhang, Jie, Empirical Models of Manufacturer-Retailer Interaction: A Review and Agenda for Future Research (March 17, 2010). Marketing Letters, Vol. 21, No. 3, pp. 273-285, 2010 ; Tuck School of Business Working Paper No. 2465625. Available at SSRN: https://ssrn.com/abstract=2465625 or http://dx.doi.org/10.2139/ssrn.2465625

Kusum L. Ailawadi (Contact Author)

Dartmouth College - Tuck School of Business ( email )

100 Tuck Hall
Hanover, NH 03755
United States
603-646-2845 (Phone)
603-646-1308 (Fax)

Eric Bradlow

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States
215-898-8255 (Phone)

Michaela Draganska

Drexel University ( email )

3141 Chestnut St
Philadelphia, PA 19104
United States

Vincent R. Nijs

Northwestern University - Department of Marketing ( email )

Kellogg School of Management
2001 Sheridan Rd.
Evanston, IL 60208
United States

Robert P. Rooderkerk

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

HOME PAGE: http://www.rsm.nl/people/robert-rooderkerk/

K. Sudhir

Yale School of Management ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States
203-432-3289 (Phone)
203-432-3003 (Fax)

Yale University-Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States

Kenneth C. Wilbur

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

HOME PAGE: http://kennethcwilbur.com

Jie Zhang

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

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