A multi-tier approach to supply chain collaboration: implications of shopper solutions

Abstract

Purpose The authors explored the impact of a popular supply chain collaboration initiative - the shopper solution - on both retailers and manufacturers, as well as on the shopper. Design/methodology/approach The authors conducted a quasi-experimental field study, an experimental online study and an experimental behavioral lab study. Findings Overall, results revealed that shopper solutions increase the quantity and breadth of displayed products sold, along with sales totals. Shoppers also expressed higher willingness-to-pay (WTP) for products displayed in solutions. Shoppers positively (negatively) attributed the presence (absence) of solutions more strongly to retailers than to manufacturers due to perceived differences in manufacturers' concern for shoppers. Specifically, shoppers expressed higher (lower) word-of-mouth (WOM) and loyalty intentions toward retailers than manufacturers when solutions were (not) provided. Originality/value The authors provide a more holistic view of supply chain collaboration by showing how different chain members (retailers vs manufacturers) can experience disparate benefits from collaboration. The authors explain this within the context of shopper solutions by demonstrating that differences in perceived concern for shoppers underlies these effects. Thus, findings suggest that shopper marketing initiatives, such as solutions, are not always "win-win-win" outcomes for retailers, manufacturers and shoppers as intended. Overall, this is the first research to assess the implications of shopper solutions for retailers, manufacturers and shoppers, alike.