THE IMPACT OF ORDER FULFILLMENT SERVICE ON RETAILER MERCHANDISING DECISIONS IN THE CONSUMER DURABLES INDUSTRY

Authors

  • Beth Davis-Sramek Ph.D.,

    Corresponding author
    1. University of Louisville
      E-mail: beth.davis@louisville.edu
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    • Beth Davis-Sramek (Ph.D. University of Tennessee) is an assistant professor in the Department of Marketing at the University of Louisville. Her research interests include the role of logistics in supply chain management, the impact of logistics service in developing customer loyalty, and the strategic role of logistics in creating competitive advantage. She has published articles appearing in the Journal of the Academy of Marketing Science, Journal of Operations Management, Journal of Business Logistics, International Journal of Physical Distribution and Logistics Management, and the The International Journal of Logistics Management. She is currently serving on the editorial review board for the Journal of Operations Management.

  • Richard Germain Ph.D.,

    1. University of Louisville
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    • Richard Germain (Ph.D. Michigan State University) is the Challenge for Excellence Chair in Supply Chain Management at the University of Louisville. He has published more than 50 refereed journal articles appearing in such outlets as Journal of Marketing Research, Strategic Management Journal, Journal of International Business Studies, Decision Science, Journal of the Academy of Marketing Science, Journal of Operations Management, and the Journal of Business Logistics. He has authored or co-authored three books and has made numerous presentations at national and international conferences. He is on the editorial board of the Journal of Business Logistics and the International Journal of Physical Distribution and Logistics Management. He currently teaches marketing and supply chain management at the MBA level and multivariate statistics at the Ph.D. level. His overseas teaching experience has primarily been in supply chain management at various institutions in Russia, including ones in Moscow and Siberia.

  • Theodore P. Stank Ph.D.

    1. University of Tennessee
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    • Theodore P. Stank (Ph.D. University of Georgia) is the John H. Dove Professor of Logistics and Associate Dean for Executive Education at the University of Tennessee. His research focuses on the strategic implications and performance benefits associated with logistics and supply chain management best practices. He is author of over 75 articles in academic and professional journals as well as co-author of two books, 21st Century Logistics: Making Supply Chain Integration a Reality, and Handbook of Global Supply Chain Management.


E-mail: beth.davis@louisville.edu

Abstract

Historically, manufacturers held the upper hand in consumer goods supply chain relationships. There has been a pervasive shift of power to retailers over the past 20 years, however, ushering in an era of waning consumer loyalty to manufacturers' brands and increasing loyalty to retailers. While there is extensive research focusing on the manufacturer-consumer relationship, retailers' increased ability to influence consumer purchases suggests that manufacturers should understand not only consumer perceptions of delivery service, but also retailer perceptions. We incorporate social network theory to examine the manufacturer-retailer-consumer linkages in the consumer durables industry, with the emphasis on the retailer in the role of the “broker” (Burt 1992). Specifically, we examine whether retailer perceptions of a manufacturer's order fulfillment service (OFS) positively impacts retailer perceptions of the manufacturer's brand, the importance of the product, and the likelihood of the retailers' salespeople to recommend the product to consumers. The research bridges OFS and retailer purchase behavior in a consumer durables industry characterized by high levels of consumer involvement, brand presence, and personal selling.

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