Whose customer is it anyway? Exploring firm power dynamics in consumer markets

Purpose This study examines the power dynamics between manufacturers, retailers and consumers in shaping market interactions. It introduces the power X persuasion framework, integrating dependency-based power structures with consumer persuasion mechanisms. The research explores how power asymmetries impact firm strategies, consumer behavior and competitive positioning. By incorporating both economic dependency and consumer persuasion theories, this framework provides a deeper understanding of how manufacturers and retailers gain competitive advantages in changing markets. Design/methodology/approach This research develops a conceptual framework by synthesizing power dependence theory and persuasion theories, including the Elaboration Likelihood Model (ELM) and Social Influence Theory (SIT). The study builds a three-level model analyzing firm dependency, persuasion strategies and their interaction in retailer–manufacturer relationships. The framework maps power and persuasion into distinct market scenarios to explain competitive dynamics and consumer behavior. Findings The power X persuasion framework identifies how firms balance dependency and persuasion to maintain leverage in market relationships. High-persuasion environments foster innovation and differentiation, while low-persuasion scenarios lead to price-based competition and commoditization. In unbalanced cases, retailers or manufacturers dominate persuasion, shaping consumer choices and forcing market adaptation. The study reveals how firms can reduce dependency by enhancing their consumer influence strategies. Research limitations/implications This framework provides a conceptual foundation but requires empirical validation through case studies and quantitative modeling. Future research should test how firms transition between market scenarios over time and explore regional and industry-specific variations. Additionally, external influences such as regulatory changes and technological shifts may further shape dependency and persuasion dynamics. Practical implications The framework helps firms assess their power positioning and persuasion effectiveness, guiding strategies to reduce dependency and strengthen consumer influence. Retailers can leverage private labels and loyalty programs, while manufacturers can foster brand differentiation and innovation to shift market control. These insights support firms in negotiation strategies, competitive planning and consumer engagement. Social implications This study highlights the role of marketing influence in decision-making. Ethical considerations in persuasion strategies, such as price manipulation and cause-related marketing, require scrutiny to ensure consumer autonomy and market fairness. The study encourages businesses to develop trust-driven, consumer-centric strategies. Originality/value This research extends power dependence theory by integrating persuasion mechanisms, offering a triadic framework beyond traditional dyadic models. It advances marketing and retail literature by linking economic dependency with persuasion and social influence theories. It provides a comprehensive tool for academics and practitioners to navigate power and persuasion dynamics in consumer markets.