The effectiveness of advertising and price during conflict delistings

Negotiations between manufacturers and retailers often go sour and result in conflict delistings in which the manufacturers’ products are removed from the retailers’ assortment. While conflict delistings can cause major revenue and market share losses for both manufacturers and retailers, prior literature provides little guidance on how to use marketing actions to alleviate these severe damages. To fill this gap, the authors use a contingency framework to assess the impact of advertising and price for both manufacturers and retailers in different conflict delisting situations. Using household scanner data for different conflict delistings, this study reveals that overall the impact of advertising decreases during the conflict delisting for both involved parties while price reductions become more effective for the brand manufacturer (but not the retailer). Importantly, the impact of advertising and price during the conflict delisting depends on conflict characteristics. The impact of advertising will be higher if the firm initiated the conflict and when the conflict is surrounded by a lot of publicity. Price reductions are particularly interesting for retailers, especially when the conflict involved a smaller elimination size, when the retailer was the initiator of the conflict, and when there was less publicity. Price reductions are also fruitful for brand manufacturers in case they did not initiate the conflict.

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Publication Details

Journal
International Journal of Research in Marketing
Published
2024-12-11
DOI
https://doi.org/10.1016/j.ijresmar.2024.12.001
Citations
1
Primary Topic
Globalization, Economics, and Policies
Type
article
Field-Weighted Citation Impact
1.13
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article

The effectiveness of advertising and price during conflict delistings

Marleen Hermans, Néomie Raassens, Kathleen Cleeren
1 citations
International Journal of Research in Marketing
Globalization, Economics, and Policies
1.13
article

The effectiveness of advertising and price during conflict delistings

Marleen Hermans, Néomie Raassens, Kathleen Cleeren
article en
1 citations

Abstract

Negotiations between manufacturers and retailers often go sour and result in conflict delistings in which the manufacturers’ products are removed from the retailers’ assortment. While conflict delistings can cause major revenue and market share losses for both manufacturers and retailers, prior literature provides little guidance on how to use marketing actions to alleviate these severe damages. To fill this gap, the authors use a contingency framework to assess the impact of advertising and price for both manufacturers and retailers in different conflict delisting situations. Using household scanner data for different conflict delistings, this study reveals that overall the impact of advertising decreases during the conflict delisting for both involved parties while price reductions become more effective for the brand manufacturer (but not the retailer). Importantly, the impact of advertising and price during the conflict delisting depends on conflict characteristics. The impact of advertising will be higher if the firm initiated the conflict and when the conflict is surrounded by a lot of publicity. Price reductions are particularly interesting for retailers, especially when the conflict involved a smaller elimination size, when the retailer was the initiator of the conflict, and when there was less publicity. Price reductions are also fruitful for brand manufacturers in case they did not initiate the conflict.

International Journal of Research in MarketingVol. 42(3)
Radboud University Nijmegen (NL), Gouverneur Kinsbergencentrum (BE), Eindhoven University of Technology (NL)
Gender equality
Openalex Percentile: Top 10%
Globalization, Economics, and Policies
1.13
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The effectiveness of advertising and price during conflict delistings — Marleen Hermans, Néomie Raassens, et al. · International Journal of Research in Marketing (2024) | TGRS Research Map | TGRS