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9 th Annual IAABD Conference May 20-24, 2008 PowerPoint Presentation
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9 th Annual IAABD Conference May 20-24, 2008. Relationships between Breweries and Retailers in Cameroon. Simon Sigué, Athabasca University Michele Onguetou, HEC Montreal Patrice Tonye, University of Douala. Outline. Research goal Context Conceptual framework Hipotheses Methodology.

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Presentation Transcript
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9th Annual IAABD Conference

May 20-24, 2008

Relationships between Breweries and Retailers in Cameroon

Simon Sigué, Athabasca University

Michele Onguetou, HEC Montreal

Patrice Tonye, University of Douala

slide2

Outline

  • Research goal
  • Context
  • Conceptual framework
  • Hipotheses
  • Methodology
slide3

The Research goal

To study the impact of the dominant brewer’s influence strategies on small retailers’ economic and non economic satisfaction in the context of dependence

context
Context
  • Société Anonyme des Brasseries du Cameroun (SABC) -70.7 %
  • Guinness Cameroon S.A. - 16.5%
  • Union des Brasseries du Cameroun - 7.0%
  • SIAC Brasseries Isenbeck - 3.8%

Four main breweries

context5
Context
  • A large product assortment that consists of three major product lines: Beers, soft drinks and sodas, and water products
  • Leading brands in several categories: Coca-Cola, Fanta, 33 Export…
  • Extensive coverage of the market

Distinctive advantages of the leader

distribution channels
Distribution channels

Supplier

Wholesaler

Non exclusive retailer

Consumers

offering in the direct channel
Offering in the direct channel
  • Offer of the leading brands in many categories
  • Product delivery
  • Credits
  • Rebates
  • Promotion and merchandising support
  • Refrigeration appliances
expectations from retailers
Expectations from retailers
  • On-time credit payments
  • Abide by suggested retail prices
  • Carry all the products including those that do not sale well
  • Sort homogenously empty bottles in cases
  • Make the outlet inviting
  • Return damaged products
  • Provide enough shelf space
  • Maintain refrigeration appliances
  • Serve cold drinks
context9
Context

Offerings

Supplier

Expectations

Satisfied

retailer

Consumers

conceptual framework
Conceptual framework

Supplier’s use of threats

Retailer’s economic

satisfaction

Supplier’s use of promises

Retailer’s noneconomic

satisfaction

Supplier’s use of noncoercive

influence strategies

conceptual framework11
Conceptual framework
  • Economic satisfaction: Positive affective response to economic rewards that flow from the relationship with a partner, such as sales, margins, rebates, … (Geyskens et al. (1999))
  • Non economic satisfaction: Positive affective response to noneconomic, psychosocial aspects of the relationship with a partner. A satisfied partner sees the interactions with the other as gratififyng, fulfilling, and easy (Fisher and Nevin 1996, Geysken et al. 1999).
conceptual framework12
Conceptual framework
  • Threats: Influence strategies used when a source communicates to the target that it will apply negative sanctions should the target fail to perform desired actions (Frazier and Rody 1991)
  • Promises: Influence strategies used when the source implies that it will provide the target with specific rewards or benefits contingent on the target’s compliance with the source’s desires. (Frazier and Rody 1991, Geyskens et al. 1999)
conceptual framework13
Conceptual framework

Non coercive influence strategies

  • Information exchange: Influence strategy whereby the source uses discussions with the target to try and alter the target’s general perception of how its business might be operated to be more profitable (Frazier and Summers 1984)
  • Recommendations: Influence strategy whereby the source suggests a set of actions that could help the target in improving the performance of its business (Frazier and Summers 1984)
  • Requests: The source merely communicates the actions it would like the target to take without implying any specific consequence (Frazier and Summers 1984)
hypotheses
Hypotheses

Threats

Building on Anderson and Narus (1990) and Scheer and Stern (1992):

  • H1: The use of threats affects negatively retailers’ economic satisfaction.
  • H2: The use of threats affects negatively retailers’ non economic satisfaction.
  • H3: The negative effect of threats on non economic satisfaction is stronger than on economic satisfaction.
hypotheses15
Hypotheses

Promises

Building on Frazier and Summers (1986), Frazier and Rody (1991), Geyskens et al. (1999), and Scheer and Stern (1992):

  • H4: The use of promises affects positively retailers’ economic satisfaction.
  • H5: The use of promises affects negatively retailers’ non economic satisfaction.
hypotheses16
Hypotheses

Non coercive influence strategies

Building on Frazier and Rody (1991), Geyskens et al. (1999), Mayo et al. (1998), and Scheer and Stern (1992):

  • H6: The use of non coercive influence strategies affects positively retailers’ economic satisfaction.
  • H7: The use of non coercive influence strategies affects positively retailers’ non economic satisfaction.
  • H8: The effect of non coercive influence strategies on non economic satisfaction is stronger than on economic satisfaction
methodology
Methodology

Phase 1: Exploratory study

  • In-depth interviews with 10 supplier’s sale managers and delivery personnel
  • In-depth interviews with 30 drinking bar owners and operators (retailers)

Phase 2: Survey

  • Population: bar owners who buy directly their supplies from SABC and have been in the market for more than 6 months
  • Sample size: 600 bar owners in Douala and Yaounde