A strategic process to manage the right value proposition with retailers in the B2C sector

Abstract

PurposeIn the past, there have been few studies that shed light on the process of how to maintain the right value proposition with retailers. This research aims to examine the factors that play a significant role in the process of keeping the right value proposition with retailers in the B2C sector through a firm-retailer dependency lens.Design/methodology/approachLongitudinal data was gathered from 700 retailers who deal with the products of two of India’s firms in the B2C sector. Three data sets were created, and an econometric model was fitted to each data set separately.FindingsThe findings revealed that the firm-centric and retailer-centric variables had positive impacts, whereas competitor-centric variables negatively impacted the value proposition. Furthermore, the intensity of the impact on the value proposition of all types of drivers varied from “quiet-quitting retailers” to “active retailers.”Practical implicationsThis study’s findings should assist managers in framing a value-sharing strategy to maintain a “win-win” relationship with retailers.Originality/valueUsing real-world data and a panel regression model, this research extends the theory on the relationship between value proposition and its drivers in the B2C sector and, hence, enriches the literature on the interface between business process management, retailing, and marketing.