The evolution of managerial innovations in distribution: what prospects for ECR?

Abstract

Efficient consumer response (ECR) is arguably the most complex managerial innovation in distribution to be introduced in the US. As such, ECR holds great potential for retailing. Despite praise by some, however, ECR faces criticism and even rejection by others. What influence will ECR ultimately have on retail operations? In this paper, the authors assess the future of ECR within the US by examining its place in a long line of advances made in distribution over the past century. Building on managerial innovation adoption and diffusion theory, the authors assess the reasons why certain previous innovations in distribution flourished, appraise the likelihood of wide diffusion for ECR, and discuss the contributions of ECR to the distribution function.