Category Captain - Oct 2010[1]

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1、MANAGEMENTSCIENCEinforms®Vol.56,No.10,October2010,pp.1739–1765doi10.1287/mnsc.1100.1211issn0025-1909
eissn1526-5501
10
5610
1739©2010INFORMSCompetitiveConsequencesofUsingaCategoryCaptainUpenderSubramanianSchoolofManagement,UniversityofTexasatDallas,Richards

2、on,Texas75080,upender@utdallas.eduJagmohanS.RajuTheWhartonSchool,UniversityofPennsylvania,Philadelphia,Pennsylvania19104,rajuj@wharton.upenn.eduSanjayK.DharBoothSchoolofBusiness,UniversityofChicago,Chicago,Illinois60637,sanjay.dhar@chicagogsb.eduYusongWangS

3、choolofManagement,FudanUniversity,Shanghai200433,People’sRepublicofChina,yusongw@fudan.edu.cnManyretailersdesignateonenationalbrandmanufacturerineachproductcategoryasa“categorycaptain”tohelpmanagetheentirecategory.Acategorycaptainmayperformdemand-enhancings

4、ervicessuchasbettershelfarrangements,shelf-spacemanagement,anddesignandmanagementofin-storedisplays.Inthispaper,weexaminewhenandwhyaretailermayengageonemanufacturerexclusivelyasacategorycaptaintoprovidesuchserviceandtheimplications.Wefindthatdemandsubstituta

5、bilityofcompetingbrandsgivesrisetoaserviceefficiencyeffect—servicethatexpandsthecategoryismoreeffectiveinincreasingamanufacturer’ssalesandmarginthanservicethatshiftsdemandfromarival’sbrand.Weshowthattheserviceefficiencyeffectmaymotivateacategorycaptaintoprovi

6、deaservicethatbenefitsallbrandsinthecategoryeventhoughdoingsoismorecostly.Wefurthershowthat,incategoriesthatarelesspricecompetitive,thereishighercompetitionbetweenmanufacturerstobecomethecategorycaptain.Consequently,aretailermayobtainbetterservicebyusingacat

7、egorycaptainthanbyengagingbothmanufacturerssimultaneously.Ourfindingsmayhelpexplainwhyaretailermayrelyonacategorycaptaindespiteconcernsregardingopportunismandwhythereislimitedempiricalevidenceofharmtorivalmanufacturers.Keywords:categorymanagement;delegation;

8、distributionchannels;retailing;suppychaincollaborationHistory:ReceivedJuly1,2008;acceptedMarch22,2010,byWallaceJ.Hopp,marketing.1.Introductionnotonlybysmallerretailersbutalsobylargeandtothisarticleandd