Decision Making Under Parity: An Experimental Examination of Retailers' Choice Among Parity Trade Promotions. Issue 2 (3rd April 2017)

• Record Type: Journal Article
• Authors: Poddar, Amit; Donthu, Naveen; Bello, Daniel C.; Foreman, Jeff
• Is Part Of: Journal of marketing theory and practice. Volume 25:Issue 2(2017)
• Page Start: 105
• Page End: 124
• Publication Date: 2017-04-03
• Subjects: Marketing -- Periodicals; Marketing research -- Periodicals; Marketing -- Périodiques; Marketing -- Recherche -- Périodiques; Marketing; Marketing research; Periodicals; 658.8005
• DOI: 10.1080/10696679.2016.1270767
• Languages: English
• ISSNs: 1069-6679

Abstract

Abstract : Retailers tend to choose trade promotions that offer the greatest short-term economic benefit. However, the choice among competing vendors that offer the same economic incentives is unclear. Relationship trade-offs and asymmetric power between retailers and vendors may influence these decisions, such that future economic incentives, social incentives, and power asymmetry are likely decision-making factors. Using commitment theory and an experimental design, this study determines that calculative commitment, power asymmetry, and various forms of loyalty commitment have significant decision-making impacts. With greater power asymmetry, calculative commitment exerts a stronger impact than comprehensive loyalty commitment; in low power asymmetry conditions, comprehensive loyalty commitment has more impact.