ESSAYS ON RETAIL ENTRY AND EXIT

The landscape of the retail industry has witnessed dramatic changes over the past decades. Both manufacturers and retailers are increasingly challenged to find innovative ways to reach and delight not only their existing customers, but also potential new customers. In this dissertation, I aim to pin down the entry effects of an innovative channel -- online marketplaces in Essay 1 and Essay 2, and the exit effects of a traditional channel – Walmart supercenter in Essay 3. In Essay 1 “The Value of Online Marketplaces to Brand Manufacturers in Emerging Markets”, I apply an event-study methodology to examine whether manufacturers’ decisions are justified by studying the net impact of adopting marketplaces on a firm’s stock market return. To further gain insight into to whom gains may arise, I use a contingency framework and relate manufacturers’ short-term abnormal returns to manufacturers’ market knowledge and marketing strengths. The findings provide comprehensive guidance for manufacturers, global or local, to assess whether and to what extent they can take advantage of online marketplaces to thrive in emerging economies. In Essay 2 “For Better or for Worse: The Halo Effects of Online Marketplaces on Entrenched Brick-and-Mortar Stores”, I evaluate the impact of online marketplaces on entrenched brick-and-mortar stores -- whether and to what extent retailers and all brands within the category stand to lose or win. To address this question, I use a seemingly unrelated regression (SUR) model to quantify the impact of online marketplaces. The study not only contributes theoretically to the scant literature on the interaction between online marketplaces and offline channels but also offers manufacturers insightful instructions on multichannel decisions. In Essay 3 “When Stores Leave: The Impact of Walmart Supercenter Closure on Retail Price”, I seek to understand how retail prices change following the exit of a local retailer by using Walmart supercenter closures in local U.S. markets as a working example. By using a difference-in-difference estimator with correction for selection bias, I find that, on average, consumers have to pay a higher price (+1.6%) after a Walmart supercenter’ exit. The study provides valuable insights into the potential impact of retail exit on price and consumer welfare.Doctor of Philosoph

Technological innovation and market turbulence: the dot-com experience

This paper explains market turbulence, such as the recent dotcom boom/bust cycle, as equilibrium industry dynamics triggered by technology innovation. When a major technology innovation arrives, a wave of new firms enter the market implementing the innovation for profits. However, if the innovation complements existing technology, some new entrants will later be forced out as more and more incumbent firms succeed in adopting the innovation. It is shown that the diffusion of Internet technology among traditional brick-and-mortar firms is indeed the driving force behind the rise and fall of dotcoms as well as the sustained growth of e-commerce. Empirical evidence from retail and banking industries supports the theoretical findings. ; Earlier title: Technology innovation and market turbulence: a dot-com exampleTechnology

Optimizing NAU Beer´s distribution strategy : analysis of the online channel

Distribution channels’ strategy is important for firms’ success, since an effective distribution strategy may increase sales and, as a result, have a positive effect on firms’ overall performance. Today, with the growing importance of online channels and social networks, firms tend to define strategies combining efficiently these channels with offline channels. Therefore, this study aims to analyse which individuals’ characteristics lead consumers to choose the online channel to buy NAU Beer, as well as, the impact of this channel on firm’s indirect channels and the importance successfully integrate different channels. A survey of consumers’ willingness to use the online channel conducted to Portuguese citizens showed that consumers tend choose online channel to purchase NAU Beer if they are users of this type of channels. This fact reinforces the idea of no cannibalization of sales among physical and online channels, assuming there are costumers who are general online buyers, which will consider buy NAU Beer online, but also consumers who have a clear preference for the physical channel. Furthermore, through interviews with other craft beer brands, it is possible to conclude that the importance of online channel goes beyond its contribution to sales and its strongly related to the need of having a broad and integrated presence in todays’ trendy channels, like social networks, as a key factor for the construction of a solid relationship with customers.A estratégia de distribuição é importante para o sucesso das empresas, considerando que, uma estratégia de distribuição efetiva poderá aumentar as vendas e ter um efeito positivo na performance geral da empresa. Atualmente, com a crescente importância dos canais online e das redes socias, as empresas têm tendência a definir estratégias que combinam de forma eficiente os diferentes canais. Desta forma, este estudo pretende analisar que características aumentam a preferência pela compra de Cerveja NAU através do canal online, bem como o impacto deste canal nos restantes canais e a importância da integração dos diferentes canais. Através de um questionário realizado junto da população portuguesa sobre a preferência pelo canal online, conclui-se que os consumidores tendem a escolher este canal para comprar Cerveja NAU se forem utilizadores habituais do mesmo. A ideia de inexistência de canibalização de vendas entre os canais físicos e os canais online é reforçada, assumindo que existem consumidores que utilizam o canal online frequentemente, tendo maior tendência a optar pelo mesmo para comprar NAU, mas existem ainda consumidores que têm preferência por comprar nos canais físicos. Através de entrevistas com outras marcas de cerveja artesanal portuguesa, é possível concluir que a importância do canal online é mais abrangente do que a simples contribuição para as vendas, sendo que este canal está relacionado com a necessidade de ter uma presença vasta e integrada nos canais relevantes no contexto atual como um fator chave para a construção de uma relação sólida com os consumidores

Branding in a Hyperconnected World: Refocusing Theories and Rethinking Boundaries

Technological advances have resulted in a hyperconnected world, requiring a reassessment of branding research from the perspectives of firms, consumers, and society. Brands are shifting away from single ownership to shared ownership, as heightened access to information and people is allowing more stakeholders to cocreate brand meanings and experiences alongside traditional brand owners and managers. Moreover, hyperconnectivity has allowed existing brands to expand their geographic reach and societal roles, while new types of branded entities (ideas, people, places, and organizational brands) are further stretching the branding space. To help establish a new branding paradigm that accounts for these changes, the authors address the following questions: (1) What are the roles and functions of brands?, (2) How is brand value (co)created?, and (3) How should brands be managed? Throughout the article, the authors also identify future research issues that require scholarly attention, with the aim of aligning branding theory and practice with the realities of a hyperconnected world

Platform opening and cooperation: a literature review and research agenda

Purpose – The review aims to facilitate a broader understanding of platform opening and cooperation and points out potential research directions for scholars. Design/methodology/approach – This study searches Web of Science (WOS) database for relevant literature published between 2010 and 2021 and selects 86 papers for this review. The selected literature is categorized according to three dimensions: the strategic choice of platform opening and cooperation (before opening), the construction of an open platform (during opening) and the impact of platform opening and cooperation (after opening). Through comparative analysis, the authors identify research gaps and propose four future research agendas. Findings – The study finds that the current studies are fragmented, and a research system with a theoretical foundation has not yet formed. In addition, with the development of platform operations, new topics such as platform ecosystems and open platform governance have emerged. In short, there is an urgent need for scholars to conduct exploratory research. To this end, the study proposes four future research agendas: strengthen basic research on platform opening and cooperation, deeply explore the dynamic evolution and cutting-edge models of platform opening and cooperation, analyze potential crises and impacts of platform openness and strengthen research on open platform governance. Originality/value – This is the first systematic review on platform opening and cooperation. Through categorizing literature into three dimensions, this article clearly shows the research status and provides future research avenues

The evolution of platform business models: Exploring competitive battles in the world of platforms

In recent decades, multi-sided platform business models have become an important avenue for value creation and capture, but the phenomenon itself remains under-theorized. We address this gap and present new, empirically-driven insights into how platform business models evolve in a context of fierce competition. Through a longitudinal, qualitative study of twelve multi-sided platforms that operate under challenging industry conditions, we discover that success in platform battles can plausibly be explained by a combination of complexity in the business model design, and the simultaneous use of innovation and imitation to create highly intricate systems of activities. We further discuss how our findings open several new avenues for future platform research

Can Upward Brand Extensions be an Opportunity for Marketing Managers During the Covid-19 Pandemic and Beyond?

Early COVID-19 research has guided current managerial practice by introducing more products across different product categories as consumers tried to avoid perceived health risks from food shortages, i.e. horizontal brand extensions. For example, Leon, a fast-food restaurant in the UK, introduced a new range of ready meal products. However, when the food supply stabilised, availability may no longer be a concern for consumers. Instead, job losses could be a driver of higher perceived financial risks. Meanwhile, it remains unknown whether the perceived health or financial risks play a more significant role on consumers’ consumptions. Our preliminary survey shows perceived health risks outperform perceived financial risks to positively influence purchase intention during COVID-19. We suggest such a result indicates an opportunity for marketers to consider introducing premium priced products, i.e. upward brand extensions. The risk-as�feelings and signalling theories were used to explain consumer choice under risk may adopt affective heuristic processing, using minimal cognitive efforts to evaluate products. Based on this, consumers are likely to be affected by the salient high-quality and reliable product cue of upward extension signalled by its premium price level, which may attract consumers to purchase when they have high perceived health risks associated with COVID-19. Addressing this, a series of experimental studies confirm that upward brand extensions (versus normal new product introductions) can positively moderate the positive effect between perceived health risks associated with COVID-19 and purchase intention. Such an effect can be mediated by affective heuristic information processing. The results contribute to emergent COVID-19 literature and managerial practice during the pandemic but could also inform post-pandemic thinking around vertical brand extensions