New products: manufacturers' versus retailers' decision criteria

Abstract

The paper deals with the different criteria used by manufacturers in devising and launching new products, and by retailers in accepting/rejecting them. The marketing literature considers new products mainly from the point of view of manufacturers, as tools used in their strategies to maintain and improve the control of their market. In analysing the manner new products are developed, tested and launched not much attention is given to the role played by retailers. In convenience.goods markets, where retail concentration is very high, giving retail firms considerable bargaining power, retailers’ assortment decision criteria are shown to play an important role in determining the success/failure of new products. Some empirical evidence is offered concerning the treatment of new products by a sample of large Italian retail organizations.