The Impact of Changes in the Power and Information Balance Upon the Quality of Supplier-Reseller Relationships in Food Marketing Channels

Abstract

Corstjens and Corstjens (1995) argue that fast moving consumer goods (FMCG) marketing has become a struggle between manufacturers and retailers for control of consumer mindspace and store shelfspace and that, in the final analysis, mindspace will be the decisive resource. Where once the manufacturer dominated on both, the retailer is now taking back shelfspace and making inroads in mindspace. Cooperation between retailers and manufacturers is possible in some areas, but fundamentally their interests conflict as both seek to control the same scarce resources: mindspace and shelfspace. Partnerships may be sought only from a position of strength and affecting the balance of power may become a major aim of marketing strategy for both retailers and manufacturers. When the latter process occurs, the use of the reseller’s new power over manufacturers (Grant, 1987) may not only have a negative impact on the manufacturer’s welfare, but also on the quality of the relationship between dyadic partners.