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Title:Context effects as customer reaction on delisting of brands PDF Logo
Authors:Wiebach, Nicole
Hildebrandt, Lutz
Issue Date:2010
Series/Report no.:SFB 649 discussion paper 2010-056
Abstract:The delisting of brands is frequently used by retailers to strengthen their negotiating position with the manufacturers and suppliers of their product assortment. However, retailers and manufacturers have to consider the risk of potential reactions when customers are faced with a reduced or modified assortment and thus, different choice. In this paper, two studies are presented which investigate customers' switching behavior if a (sub-)brand is unavailable and key determinants of the resulting behavior are discussed. Various conditions are tested by taking into account context theory. The results reveal that customer responses depend significantly on the context. A real-life quasi-experiment suggests that manufacturers may encounter substantially larger losses than retailers. Managerial implications for both parties can be derived and recommendations for further research are developed.
Subjects:consumer decisions
delisting
context effects
switching behavior
retailing
logistic regression
JEL:M31
C12
C13
C25
C38
Document Type:Working Paper
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

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