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Marketing Science 1992

Retailers' growing power in marketing channels

Bert Rosenbloom

Abstract

Three decades ago in a classic article on marketing channels, McVey addressed the retailer's role in the marketing channel: The middleman (retailer) acts primarily as a purchasing agent for his customers, and only secondarily as a selling agent for his supplier. He is interested in selling any product which customers desire to buy for him (McVey I960). Trends in the retail sector in the U. S. and other developed countries around the world (Brown 1987) have shown that McVey's observation has become more apparent than ever u retailers have become increasingly powerful and indeed are the dominant force in many marketing channels.

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