2015 | OriginalPaper | Chapter
Retail Free-Riding: The Case of the Wallpaper Industry
Authors : Paul W. Farris, S. Umit Kucuk, Robert Maddux
Published in: Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference
Publisher: Springer International Publishing
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It is often claimed that discounters are able to succeed by “free-riding” on the pre-sale consumer services, depth of assortment, convenient location, and the brand/product image created supplied by full-service retailers. Although free-riding has been argued to affect the competition of brands within an industry, it is rarely identified as potential determinant of industry viability. Using the wallpaper industry as a case study, we analyze the marketing history of this industry over a 30-year period to illustrate how retail free-riding has potentially contributed to the radical decline in size and profitability of an entire market. Possible implications for distribution channel policy and pricing practices are also discussed.