Exchange of market information in retail trade - Insights on the termination of ScanTrack in Finland

Abstract

Research Objectives The objective of this study is to analyse the exchange of market information in an organizational setting between a retailer and a supplier. This is influenced primarily by the industry structure and environment as well as relationship traits of the firms and the internal strategy of companies. This study aims to identify the key influencing factors and analyse their effect on the sharing of market information.

Research methods Empirically the study is positioned in the Finnish retail trade sector that is characterized by high retailer market concentration. The research takes on a qualitative industry-level approach to interview a total of fifteen people representing suppliers, retailers, trade associations and regulatory authorities. The frames for the research arise from the recent termination of ScanTrack –based sharing of consumer sales information.

Summary of Findings The research identified fourteen key factors related to industry setting, competition regulation, company relationships and retailer strategies that have an effect on market information exchange. In analysis of these factors regarding the ScanTrack case, it was found that the complete termination of the system in Finland was more of a retailer-based decision than an outcome of competition regulation.