Exclusive Dealing: Indian Experience

In their attempt to increase sales, profit, and market power, manufacturers and suppliers often resort to certain marketing practices which limit the freedom of distributors and restrict competition in the market. One such restrictive trade practice is exclusive dealing, whereby the manufacturer or supplier requires the distributor to exclusively deal in the goods manufactured or supplied by the former. This paper seeks to analyse and evaluate the statutory provisions for regulation of exclusive dealing and the attempt of the MRTP Commission to curb exclusive dealing. An attempt has been made to ascertain the current thinking of the M RTP Commission and the Supreme Court on exclusive dealing. </jats:p

Influence of store image on buyers’ product evaluation

This paper is based on a study conducted to examine the influence of the store image on the buyers’ perception of quality for durable, semi‐durable and non‐durable products. The study has revealed that for a durable product, like colour television, although the reputation of the brand and price are more important considerations, the buyer does pay attention to the store image as well. This is done to reduce their perceived risk and in expectation of getting good after‐sale services. He perceives a significant difference in the quality of the product sold at different stores. However, people prefer to buy from a reputed store located at a nearby area. Moreover, the buyers generally make up thei rmind about thee brand to be purchased before selecting the store. Therefore, they either look for the exclusive showroom dealing in their preferred brand or a reputed store selling that brand along with others. Buyers prefer to buy branded T‐shirts either from an exclusive showroom or a departmental store. For local brands, they take little care about the store image. Moreover, they select the store with which they had a good previous experience. A store located in a posh market is generally perceived to be carrying superior quality T‐shirts. While purchasing toothpaste, buyers pay least attention to the store image, and do not perceive a significant difference in the quality of the toothpaste sold at different types of stores. They do not believe that the more reputed the store, the better will be the quality of the toothpaste sold. They, generally, buy from the same store again and again, without taking any notice of the store reputation. The proximity of the store was found to be the most important factor influencing the store selection.</jats:p