Retailers' distribution channel strategies with cross-channel effect in a competitive market

Nie, Jiajia; Ling, Zhong; Yan, Hong; Yang, Wenjuan

doi:10.1016/j.ijpe.2018.12.019

Cited by 67 publications

(44 citation statements)

References 26 publications

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“…One of their interesting findings is that a pure offline retailer may strategically establish an online channel with little demand to gain whole price reductions from the manufacturer. Nie et al [22] investigated the impacts of cross-channel effects on the two competing traditional retailers' distribution channel strategies. They found that when the cross-channel effect is significantly negative, the retailers may give up their online and offline strategies.…”

Section: Dual-channel Supply Chainmentioning

confidence: 99%

An E-Tailer’s Operational Strategy under Different Supply Chain Structures

Wang

2020

Sustainability

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Motivated by the enormous business success of E-tailers and their distinct business strategies, this paper analyzes the characteristics of dual online channel competition and the fundamental willingness of an E-tailer to open its marketplace to other retailers while at the same time competing with them. We build game theory models to study the dual-channel competition between an incumbent E-tailer and other online retailers under different supply chain structures. Either the manufacturer or authorized third-party retailers can start an online store in the E-tailer’s marketplace. The results show that the transaction fee charged by the platform and the service level provided to customers play significant roles in deciding the marketplace business strategy—the E-tailer faces complicated issues when these two factors fluctuate. A pure strategy of raising the transaction fee may not always be beneficial and a competitor’s superior service level may help to enhance a rival’s sales price. In the expanded research, dual online channel competition with an unauthorized third-party retailer, which is common in the online marketplace, is also examined.

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Section: Dual-channel Supply Chainmentioning

confidence: 99%

An E-Tailer’s Operational Strategy under Different Supply Chain Structures

Wang

2020

Sustainability

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“…Bian et al [27] studied manufacturers' distribution channel strategies under environmental taxation and suggested that a monopolistic manufacturer can benefit from a decentralized distribution channel when its technology is sufficiently polluting and that two competing manufacturers are more likely to decentralize the distribution channel when their technologies are more environmentally damaging. Nie et al [28] investigated the effects of a cross online-and-offline channel (OOC) on two competing retailers' distribution channel strategies and showed that such retailers may abandon the OOC strategy when the cross-channel effect is significantly negative. Bian et al [29] analyzed the dynamic interactions between manufacturers' distribution channel strategies and incentives for collusion.…”

Section: Distribution Channel Strategymentioning

confidence: 99%

Strategies on Pricing, Greenness Degree, and Carbon Emission Reduction in Supply Chains under Single and Cross Distributions of Green and Nongreen Products

Lee

2020

Mathematical Problems in Engineering

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Environmental sustainability has become a critical indicator in evaluations of the success and efficiency of supply chain management. In this study, we consider a two-echelon supply chain composed of two competing manufacturers, two retailers, and one third-party logistics firm. The first manufacturer produces a green product, while the second manufacturer produces a nongreen product. Each of the two retailers can sell only a green product, only a nongreen product, or both green and nongreen products. All products are initially stored by the third-party logistics firm and delivered to the retailers. This study investigates product pricing, the degree of greenness of the first manufacturer’s product, and carbon emission reduction as carried out by the third-party logistics firm. Using a three-stage Stackelberg game framework, we present the equilibrium strategy on pricing, the degree of greenness, and carbon emission reduction for five different distribution channel structures. One of our major findings is that competition between the two manufacturers has a positive influence on the profitability of the supply chain. We also find that it is desirable for each manufacturer to choose a cross-distribution channel for its products considering the sustainability and profitability of the supply chain.

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“…Channel conflicts in supply chain is an essential topic in operation management, and online and offline channel conflicts have attracted growing attention due to the importance for a supply chain. Nie et al [6] study retailers' distribution decision with online and offline channel conflicts. They focus on a competitive market and find that retailers prefer the online channel although it has a negative effect.…”

Section: A Channel Conflictsmentioning

confidence: 99%

Pricing Strategies in a Two-Echelon Supply Chain With Sales Efforts and Channel Conflicts

Cai

Song

2020

IEEE Access

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With the increasing popularity of online retail, many manufacturers have opened up their own online marketplaces, which has accelerated competition in the retail market. This paper considers a two-echelon supply chain consisting of a manufacturer and a retailer, where the retailer and the manufacturer sell the same product on their respective online platforms. This sales model creates channel conflicts in the supply chain. In order to explore the impact of this kind of conflict and sales efforts on the supply chain, we constructed consumers' utility functions when they buy products in different channels as well as a supply chain profit model where there is channel competition and sales efforts. The results show that the severity of channel conflicts affects consumers' choice of purchasing channels, and excessive channel conflicts will cause consumers to lose interest in shopping, channel conflicts will also make retailers and manufacturers more competitive. In addition, sales efforts can increase channel conflicts. Numerical analysis shows that although channel conflicts weaken the overall profit of the supply chain, it is more beneficial to manufacturers. Finally, we analyze the impact of channel conflicts and sales efforts on consumer surplus. We generate results to provide guidance for the operations of two-echelon supply chains. INDEX TERMS Channel conflicts, pricing strategies, sales efforts, two-echelon supply chain.

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Retailers' distribution channel strategies with cross-channel effect in a competitive market

Cited by 67 publications

References 26 publications

An E-Tailer’s Operational Strategy under Different Supply Chain Structures

An E-Tailer’s Operational Strategy under Different Supply Chain Structures

Strategies on Pricing, Greenness Degree, and Carbon Emission Reduction in Supply Chains under Single and Cross Distributions of Green and Nongreen Products

Pricing Strategies in a Two-Echelon Supply Chain With Sales Efforts and Channel Conflicts

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