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New product procurement behavior of us supermarket chains: Implications for food and agribusiness suppliers
Author(s) -
McLaughlin Edward W.,
Fredericks Peter
Publication year - 1994
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199411/12)10:6<481::aid-agr2720100605>3.0.co;2-h
Subject(s) - agribusiness , product (mathematics) , business , procurement , marketing , food products , commerce , industrial organization , agriculture , food science , ecology , chemistry , geometry , mathematics , biology
The introduction of new products to US supermarket chains represents a strategic area of business conduct with significant economic implications for agribusiness companies, food manufacturers and retailers, and consumers. Development of new products by manufacturers and their subsequent evaluation by retailers absorbs enormous resources in the grocery distribution system. This research examined new product buying practices in the top 200 US supermarket chains. Typical findings show the reasons that nearly 70% of all newly introduced products are rejected by buyers and never make it to store shelves and approximately one‐half of newly accepted products are removed from stores within 1 year. This study demonstrates that a food or agribusiness firm must first understand the standard procedures, wants and needs, of the key “gatekeeper” buyer before focusing on the final consumer. ©1994 by John Wiley & Sons, Inc.