Trade practices of retail chains as far as the transaction cost analysis in relationships manufacturer - retailer are concerned in the milk industry

Abstract

The primary purpose of this article is to discuss the trade practices used by retail chains from the point of view of the possible solutions of conflicts between the members of the distribution channel, which have an influence on selling prices for the end users. It is based on the knowledge of the theory of the transaction cost analysis, which makes it possible for the members of the distribution channel to make decisions on the number of forms of the organization in order to realize their activities successfully. In this framework and using the example of milk, the article shows the trade practices of retail chains to improve the relationships manufacturer - retailer in the Slovak consumer market.

Keywords

• manufacturer-retailer relationship
• retail chain
• purchasing department
• transaction cost analysis
• milk products
• slovak food market
• milk industry