Dual agency in retail chains

IF 0.7

Journal of Marketing Channels Pub Date : 2020-04-02 DOI:10.1080/1046669X.2019.1657740

Steven C. Michael

引用次数: 0

Abstract

Abstract Retail distribution is often organized into chain stores, where geographically dispersed units operate under a common trademark and operational routines. Franchising is an organizational form chosen by entrepreneurs to manage retail chains. Previous research has maintained that franchising is a solution to “the” agency problem. This article shows how franchising solves one agency problem, shirking, but creates another, free riding, giving rise to dual agency problems. We test which has a stronger effect on performance. Using stochastic frontier estimation, a technique from empirical economics, we show that marketing spending yields less sales for franchised chains relative to owned chains, suggesting that the loss associated with free riding dominates the gain from controlling shirking. Implications for theory and practice are discussed.

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零售连锁中的双重代理

摘要零售分销通常被组织成连锁店，在那里，地理上分散的单位按照共同的商标和运营惯例运营。特许经营是企业家为管理零售连锁企业而选择的一种组织形式。先前的研究表明，特许经营是解决代理问题的一种方法。这篇文章展示了特许经营如何解决一个代理问题，推卸责任，但却创造了另一个问题，搭便车，从而产生双重代理问题。我们测试哪个对性能有更强的影响。使用随机前沿估计（一种来自实证经济学的技术），我们表明，与自有连锁店相比，特许连锁店的营销支出产生的销售额更少，这表明与搭便车相关的损失主导了控制推卸的收益。讨论了对理论和实践的启示。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Marketing Channels BUSINESS-

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期刊介绍： The Journal of Marketing Channels is the first and only professional marketing journal to focus exclusively on distribution systems, strategy, and management. The journal recognizes the growing importance of distribution as a key strategic variable in marketing management. Indeed, if one looks realistically at the major strategy variables of the marketing mix—product, price, promotion, and distribution—the greatest potential for achieving a competitive advantage now lies in distribution. The reason? Rapid technology transfer has made product advantages increasingly difficult to maintain. International operations seeking lower costs have made price advantages much harder to sustain because everybody seems to be “playing the same game.” Even promotion, which relies so heavily on mass media advertising, has become a battle of who can spend the most money. But distribution still offers a new frontier for competing successfully especially if the emphasis is placed on the design and management of superior marketing channel systems to provide excellent customer service. A competitive advantage gained through better distribution is not easily copied by the competition and hence becomes a long-term sustainable competitive advantage. Yet designing optimal marketing channel systems, formulating innovative distribution strategies, and managing marketing channel systems effectively is no simple task. In fact, professional marketing expertise of a very high order is required to meet these challenges, especially given the growing competitive role and rapid pace of web-based marketing. The Journal of Marketing Channels helps provide the knowledge and tools needed to develop superior distribution systems, strategies, and management. Leading authorities from around the world present the most up-to-date and in-depth thought, analysis, and research on these topics in this refereed international quarterly journal.