Buyer–seller relationships for promotional support in the apparel sector

Abstract

Abstract Promotional supports provided by manufacturers are important to many retailers. With the intense competition for customers and heightened concern for profit margins, retailers’ cooperation is critical in the promotional process so that promotional services mutually benefit both manufacturers and retailers. The purpose of this study was to define promotional support categories offered to apparel retailers from manufacturers, to identify the retailer's perceptions of the offering frequency and importance of the promotional support, and to investigate the relationship between offering frequency and perceptions of importance. A descriptive research design was developed to survey 100 large retail organizations in the USA. Results indicated that monetary support was regarded as the promotional support offered the most and perceived by retailers to be the most important. Findings reveal an overall consistency between apparel retail buyers’ importance perception and manufacturers’ offering frequency of promotional support. A positive and significant correlation was found between items the buyers perceived as important and the frequency of offerings of these items. Indications were that manufacturers recognize their customers’ needs by matching the frequency of support offerings with which they offer the promotional support with the importance perception of buyers toward the promotional support. Future studies should identify and examine additional promotional support items. Also, examining the interrelationships among organizational variables, as well as combined effects on apparel retail buyers’ buying decision‐making using a global model, needs to be investigated.

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