Economic Impact of Category Captaincy: An Examination of Assortments and Prices

Viswanathan, M and Narasimhan, O and John, G (2021) Economic Impact of Category Captaincy: An Examination of Assortments and Prices. Marketing Science, 40 (2). pp. 261-282. ISSN 0732-2399

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Abstract

We empirically investigate the impact of category captaincy, an arrangement where the retailer works exclusively with a manufacturer to manage both the manufacturer’s and his rivals’ products. Using a unique data set that contains information on category captaincy as well as SKU-store-level sales and price across 24 retail chains and eight local markets in the United States for a frozen food category, we quantify the impact of captaincy on prices, assortments, profits, and consumer welfare. Interestingly, our estimates suggest that captaincy can lead to welfare gains for consumers, which argues against a purely negative view of captaincy by policy makers.

Affiliation: Indian School of Business
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Viswanathan, M
UNSPECIFIED
Item Type: Article
Uncontrolled Keywords: Retail, Category Captaincy, Category Management
Subjects: Marketing
Depositing User: Gurusrinivasan K
Date Deposited: 02 Apr 2021 04:08
Last Modified: 02 Apr 2021 04:08
URI: https://eprints.exchange.isb.edu/id/eprint/1429
Publisher URL: https://doi.org/10.1287/mksc.2020.1251
Publisher OA policy: https://v2.sherpa.ac.uk/id/publication/15003
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