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

By Madhu Viswanathan, Om Narasimhan, George John
Marketing Science | March 2021

DOI

doi.org/10.1287/mksc.2020.1251

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Citation

Viswanathan, Madhu., Om Narasimhan., George John. Economic Impact of Category Captaincy: An Examination of Assortments and Prices Marketing Science doi.org/10.1287/mksc.2020.1251.

Marketing Science, 2021

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 dataset for the frozen pizza category, that contains information on category captaincy across 20 retail chains and 8 local markets in the United States and retail movement data, we identify efficiency, foreclosure and market expansion effects. Interestingly,our estimates suggest that captaincy can also lead to welfare gains for consumers, which argues against a purely negative view of captaincy by policy makers.

Madhu Viswanathan is an Associate Professor of Marketing at the Indian School of Business (ISB). Prior to joining ISB, he served as an Assistant Professor at University of Arizona.

Professor Viswanathan’s research work focuses on the role of distribution channels, B2B relationships, and salesforce compensation, as well as, their impact on key marketing mix elements such as pricing and product assortment. His work has been published in the Journal of Marketing Research, a premier journal in the field of marketing. He has consulted for and worked with companies spanning a wide range of industries including retail, insurance, and healthcare.

Professor Viswanathan holds a PhD in Business Administration (Marketing) from the University of Minnesota, Twin Cities, and an undergraduate degree in Mechanical Engineering from BITS, Pilani.

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