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The effectiveness of a product's distribution network in retail stores is an important consideration for marketing managers. An effective distribution network typically covers a large number of stores in the geographic area of a market and establishes a continuous presence in the top-selling outlets of a product category at the same time. This study proposes a semiparametric, brand-level version of the SCAN*PRO sales model, to evaluate the impact of retail distribution changes on sales. The model is estimated using the iteratively reweighted least squares method and provides the following outputs: (i) least squares coefficient estimates for the price and promotional drivers in the model specification and (ii) two-dimensional plots of the nonmonotonic relationship between the weighted distribution and sales. The proposed model can be estimated with commonly available retail scanning data and is demonstrated using three laundry detergent brands from The Netherlands. [ABSTRACT FROM AUTHOR]

In emerging markets, the effective implementation of distribution strategies is challenged by underdeveloped road infrastructure and a low penetration of retail stores that are insufficient in meeting customer needs. In addition, products are typically distributed in multiple forms through multiple retail channels. Given the competitive landscape, manufacturers' distribution strategies should be based on anticipation of competitor reactions. Accordingly, the authors develop a manufacturer-level competition model to study the distribution and price decisions of insecticide manufacturers competing across multiple product forms and retail channels. Their study shows that both consumer preferences and estimated production and distribution costs vary across brands, product forms, and retail channels; that ignoring distribution and solely focusing on price competition results in up to a 55% overestimation of manufacturer profit margins; and that observed pricing and distribution patterns support competition rather than collusion among manufacturers. Through counterfactual studies, the authors find that manufacturers respond to decreases in distribution costs and to the exclusive distribution of more preferred manufacturers by asymmetrically changing their price and distribution decisions across different retail channels. [ABSTRACT FROM AUTHOR]

The main purpose of this study was to analyse the opinions of farmers in the province of Almería concerning the state of the fruit and vegetable sector, to learn about the main considerations in their decision-making processes when marketing their products and their assessment of the image of companies and cooperatives and to analyse the social structure of this collective. To that end, the analysis was conducted on three levels: a descriptive analysis on two levels - a quantitative analysis of the socio-demographic, socio-economic and marketing characteristics of farmers in the province of Almería and a qualitative analysis based on the opinions of farmers and a group of experts in the sector; and an explanatory analysis, based on a binary logistic regression model, to show how decision-making occurs in the marketing dialectic, whether it either be at the source (auction) or the end-point (cooperative). The conclusion is that the marketing variables that are most tied to context - such as price, timeframe or certification - better explain the decision-making process of farmers in the province of Almería when marketing their products, both for cooperative members and for those who sell their products in alhóndigas (traditional auction houses).

Abstract Several models of retail activity distribution have been proposed in the scientific literature. Despite the large debate on their validity, few empirical studies have been proposed. Micro retail location data have been analyzed with different approaches; point pattern analysis methodologies have recently been presented as a way to detect spatial concentrations of points. Yet, concentration is not the only significant aspect defining retail fabrics. Economic geography recognizes that form and function participate simultaneously to the definition of retail districts. In this paper a new bottom-up data-based methodology is proposed to assess retail distribution starting from a store point pattern representation on a street network. Theory-based indicators are implemented with the combination of geoprocessing and geostatistical approaches, allowing the recognition of morpho-functional patterns. Bayesian classification methods are then applied to these spatial patterns, recognized as being retail fabrics characterizing the retailscape of a vast metropolitan area. This methodology is then applied to the real case study of the French Riviera metropolitan region. Retail fabrics and their spatial organization are identified and described. Highlights • Retail Fabric Assessment is a new methodology to characterize retail point patterns on urban street networks. • RFA can identify retail fabrics combining functional and morphological characteristics at different scales. • Retailscapes and senior theoretical models can be empirically assessed within a common framework in large metropolitan areas. • The method is applied to the French Riviera case study, extending results of traditional expert-based assessments. [ABSTRACT FROM AUTHOR]

Abstract The dynamics of inventory record inaccuracy (IRI) remain under-explored in a multi-channel distribution center (MCDC) setting. Additionally, how employees interact with the rest of an MCDC's inventory system to impact IRI is yet to be explored. To address these issues, our research adopts a multi-method exploratory approach to understand the nature and existence of IRI between cycle counts in a multi-channel environment based on continuous, daily IRI-related observations. These data are then used to develop a system dynamics model to further explore the interaction between employees and the rest of the inventory system. Our case study finds substantial levels of IRI on a daily basis, with varying levels of consistency and a bias toward negative errors, raising concerns as to the suitability and stability of MCDC inventory systems. We also find varying IRI effects depending on the channel, with inventory density, in particular, having mixed influences. Further, we provide evidence for substantial volatilities of daily IRI likely generated by employee-system interactions in the MCDC. Without the daily perspective, such evidence would otherwise have remained unobserved. Our system dynamics model also provides a novel framework to show how employees interact with MCDC inventory characteristics to affect the dynamic level and stability of IRI. This research also provides suggestions for managing and further examining these phenomena. [ABSTRACT FROM AUTHOR]

The distribution of retail activity in cities should consider the network structure of the urban space. The spatial configuration of retail activities defines different typologies of retail distributions. What is more, street networks vary in intensity and configuration over space, increasing or reducing the local possibilities of retail development. This paper develops a new methodological proposition for the point pattern analysis on non-homogenous networks. From the configurational studies of networks and fractal theories, we derive local parameters of network and point pattern distribution. From these parameters we obtain a new classification of retail distribution patterns; its interpretation varies with the spatial extent of the analysis. The application of this methodology to a real case-study is shown in the second part of the paper. [ABSTRACT FROM AUTHOR]

The main purpose of this study was to analyse the opinions of farmers in the province of Almería concerning the state of the fruit and vegetable sector, to learn about the main considerations in their decision-making processes when marketing their products and their assessment of the image of companies and cooperatives and to analyse the social structure of this collective. To that end, the analysis was conducted on three levels: a descriptive analysis on two levels - a quantitative analysis of the socio-demographic, socio-economic and marketing characteristics of farmers in the province of Almería and a qualitative analysis based on the opinions of farmers and a group of experts in the sector; and an explanatory analysis, based on a binary logistic regression model, to show how decision-making occurs in the marketing dialectic, whether it either be at the source (auction) or the end-point (cooperative). The conclusion is that the marketing variables that are most tied to context - such as price, timeframe or certification - better explain the decision- making process of farmers in the province of Almería when marketing their products, both for cooperative members and for those who sell their products in alhóndigas (traditional auction houses). [ABSTRACT FROM AUTHOR]

We use monthly sales of all wines, beer, and spirits sold between 2006 and 2011 by Sweden's retail monopoly on alcohol to estimate the causal effect of retail distribution on market share by volume at the product level. Products are defined at the level of the stock-keeping unit. Two institutional features are key to identifying the causal effect: First, the monopolist uses four levels of retail distribution; a change in retail distribution is therefore associated with a discrete shift in the number of stores that carry a product in a given month. Second, the retailer is legally bound and monitored by the European Union to ensure that it acts in a non-discriminatory manner with all its suppliers. These features allow us to rule out many possible confounding factors in estimating the effect of distribution on sales volume. We find large and statistically significant effects from changes in retail distribution on market share by volume across all levels of retail distribution. The associated volume elasticity of retail distribution is convex; the wider the retail distribution the greater the marginal volume increase from further widening. In this market, wider distribution means reaching stores with successively smaller assortment. Our results indicate that the smaller assortment in smaller stores, coupled with a low resistance to compromise, is the main reason for the convex pattern. In other words, convexity appears to be generated by products achieving 'a larger share of a smaller pie' as retail distribution expands. Data are available at . [ABSTRACT FROM AUTHOR]

Malnutrition in children under 5 years of age is pervasive in Ethiopia across all wealth quintiles. The objective of this study was to determine the willingness to pay (WTP) for a week's supply of Nutributter® (a lipid‐based nutrient supplement, or LNS) through typical urban Ethiopian retail channels. In February, 2012, 128 respondents from 108 households with 6–24‐month‐old children had the opportunity to sample Nutributter® for 2 days in their homes as a complementary food. Respondents were asked directly and indirectly what they were willing to pay for the product, and then participated in market simulation where they could demonstrate their WTP through an exchange of real money for real product. Nearly all (96%) of the respondents had a positive WTP, and 25% were willing to pay the equivalent of at least $1.05, which we calculated as the likely minimum, unsubsidised Ethiopian retail price of Nutributter® for 1 week for one child. Respondents willing to pay at least $1.05 included urban men and women with children 6–24 months old from low‐, middle‐ and high‐wealth groups from four study sites across three cities. Additionally, we estimated the initial annual market size for Nutributter® in the cities where the study took place to be around $500 000. The study has important implications for retail distribution of LNS in Ethiopia, showing who the most likely customers could be, and also suggesting why the initial market may be too small to be of interest to food manufacturers seeking profit maximisation. [ABSTRACT FROM AUTHOR]