Manufacturers' Distribution Strategy in the Presence of the Electronic Channel

Wu, Dazhong; Ray, Gautam; Whinston, Andrew B.

doi:10.2753/mis0742-1222250107

Cited by 17 publications

(5 citation statements)

References 34 publications

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“…Yan and Pei [33] revealed that information collaboration and sharing between the online and traditional channels can effectively improve the performance of the channel as a whole and of each channel member. Wu et al [29] examined the impact of an electronic channel on the manufacturer's distribution strategy and showed that reduced search cost, increased reach to consumers, and limited capability to provide product information from the electronic channel all significantly influence the manufacturer's distribution strategy. However, the aforementioned papers all focused solely on the pricing factor (i.e., decision variable) and did not consider the important effect of cooperative advertising on online vs. traditional channel competition when the manufacturer opens an online channel to compete with its retailer.…”

Section: Literature Reviewmentioning

confidence: 99%

The Strategic Value of Cooperative Advertising in the Dual-Channel Competition

Yan

Pei

2015

International Journal of Electronic Commerce

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Section: Literature Reviewmentioning

confidence: 99%

The Strategic Value of Cooperative Advertising in the Dual-Channel Competition

Yan

Pei

2015

International Journal of Electronic Commerce

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“…Indeed, this may influence a manufacturer’s choice to sell to a specialized e-tailer, as well as to a traditional retailer. Wu et al ( 2008 ) suggest that a manufacturer would only optimally approach different resellers on the two channels when the value of product information is much higher digitally than physically. In this manner, the e-tailer can afford to maintain a price premium over the physical without causing cross-channel price competition and price erosion.…”

Section: Systematic Literature Reviewmentioning

confidence: 99%

E-commerce channel management on the manufacturers’ side: ongoing debates and future research pathways

et al. 2023

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Since the beginning of the 2000s, online commerce has been gradually taking over and shaping the global marketplace. This has led several scholars to study the phenomenon from different angles, from consumer habits to privacy risks to related technological innovations. However, only recently has a branch of literature addressing the online channel management phenomenon from the manufacturers’ perspective emerged. This rapidly expanding literature strand remains rather fragmented, raising the need for a systematic literature review to comprehensively structure and discuss it. This study, accordingly, proposes a systematic literature review on online channel management from the manufacturers’ perspective. Firstly, it provides relevant bibliometric insights into the ongoing research on the topic. Secondly, applying the bibliographic coupling methodology individuates 92 interconnected contributions published by 31 December 2021. Three different, albeit interconnected, thematic clusters are discovered and reviewed, revealing their focus on (a) strategic marketing issues around manufacturervsretailer conflict, (b) pricing policies and trade-offs among pricevsservices, and (c) operational interactions and strategies between supply chain members. Finally, after a systematic literature review the authors develop thirteen original research propositions concerning new research pathways and theoretical advancements to be designed and implemented.

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“…In the first stream, research has considered firm profitability under various settings such as contract selection (Mukhopadhyay, Zhu, & Yue, ), channel coordination (Tsay & Agrawal, ; Cai, ; Yan, Guo, Wang, & Amrouche, ), firm's pricing strategy (Huang & Swaminathan, ), retailing services (Yan & Pei, ), and channel choice (Yoo & Lee, ). The second stream studies manufacturer's dual channel strategy with issues such as consumer acceptance (Chiang, Chhajed, & Hess, ), service competition (Chen, Kaya, & Özer, ), demand uncertainty, exogenous service quality and wholesale price (Dumrongsiri, Fan, Jain, & Moinzadeh, ), the interaction between channel structure and price (Cattani, Gilland, Heese, & Swaminathan, ), the retailer's cost advantage (Arya, Mittendorf, & Sappington, ), personalized pricing (Liu & Zhang, ), competitive brands (Kumar & Ruan, ), channel capability differentiation (Xu, Gurnani, & Desiraju, ), product information (Wu, Ray, & Whinston, ), and product variety (Xiao, Choi, & Cheng, ). Our article is related more to the latter as we consider a manufacturer's dual channel strategy when its retailer has investment opportunities to reduce product returns.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Product Returns and Retailer's Service Investment on Manufacturer's Channel Strategies*

2016

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We study the distribution channel decision of a manufacturer who considers whether to add an online channel (direct channel) to its brick‐and‐mortar retailer (indirect channel). The retailer faces the opportunity to invest in store assistance to help consumers choose products and thus reduce product returns. Special attention is given to the impact of product returns and retailer's store assistance investment on manufacturer's dual channel decision. We examine conditions under which the manufacturer uses dual channels and how various relevant factors affect its channel decision under two settings, depending on whether the retailer has its own online store or not. When the retailer does not have its online store, we find that (i) the addition of the direct channel raises the wholesale price; (ii) the direct channel addition hurts the retailer if the nonreplacement rate is low; (iii) the manufacturer has a lower incentive to add the direct channel when the retailer's service cost is lower or its returns reduction rate from service investment is higher; and (iv) the manufacturer should treat its own returns handling cost as a key factor in its channel structure decision. In addition, when the retailer operates an online store, we find that the manufacturer may have an incentive to add a direct channel such that both firms own direct channels.

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Manufacturers' Distribution Strategy in the Presence of the Electronic Channel

Cited by 17 publications

References 34 publications

The Strategic Value of Cooperative Advertising in the Dual-Channel Competition

The Strategic Value of Cooperative Advertising in the Dual-Channel Competition

E-commerce channel management on the manufacturers’ side: ongoing debates and future research pathways

The Impact of Product Returns and Retailer's Service Investment on Manufacturer's Channel Strategies*

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