Research: Theoretical And Empirical Political And Economic Framework Of Slotting Allowances

In the study field of slotting allowances, researches are mostly based on economics theory, and the study on social factors is not adequate. Therefore, the author puts forward an integrate research framework and some propositions on the basis of channel power theories and the framework of social economics. The integrate framework researches the slotting allowances from both economics and marketing angle, and therefore it researches channel behavior, besides traditional economic analysis. The opinions of the author are as follows.Firstly, transactional form, as the internal economic factor, directly impacts on slotting allowances. As transactional form changes from market transactions to hierarchical transactions, slotting allowances decrease and fall to zero at last. In addition, slotting allowances also impact on transaction form. After slotting allowances rise to some level, the further increase of slotting allowances will drive manufactures to turn to non-market transactions.Secondly, channel power structure, as the internal political factor, also has a direct influence on slotting allowances. If retailers are in power advantage in a channel of asymmetrical power structure, the more advantageous, the higher slotting allowances; on the contrary, if manufactures are in power advantage, slotting allowances don't exist. Moreover, in a channel of symmetrical power structure, in which retailers and manufactures highly depend on each other, slotting allowances are the lowest. At last, slotting allowances also have an indirect effect on the stability of channel relations by influencing the conducts of channel performance and satisfaction.Thirdly, the vertical structure between supply and demand and horizontal market structure, which both are external economic factors, have an indirect influence on slotting allowances by affecting the power structure of the focal dyad. On the other hand, slotting allowances also impact external economic factors. The increase of slotting allowances will drive the structure of supply over demand to equilibrium and make the concentration of manufacturing and retailing higher.Finally, consumers, competitors and regulatory organizations, which comprise the primary task environment, influence slotting allowances indirectly by affecting power structure of the focal dyad. To the focal dyad, the one who gains more information of consumers is more powerful; the one whose competitors are less is more powerful; the one who builds closer relationship with regulatory organizations is more powerful. And the change of the power structure of the focal dyad will lead to the change of amount of slotting allowances.Based on the theoretical research, the author takes Gome and the Zhengyang Electronic Appliances Company as samples to conduct an empirical study of the relationships between channel power structure and slotting allowances. It is found that the channel power structure has a marked influence on slotting allowances, and slotting allowances also have an indirect effect on the stability of channel relations by influencing the conducts of channel performance and satisfaction.