“…The first is that multiple channels of distribution are harmful to performance given they can lead to free riding (Sandrine, ), cross‐channel cannibalization (Pu, Gong & Han, ), and negative spillover effects across channels (Bernstein et al., ; Cao, Zhang & Chen, ; Dan, Xu & Liu, ; Van Birgelen, De Jong & De Ruyter, ; Xia, Xiao & Zhang, ; Xing & Liu, ). These impacts reflect different forms of channel conflict that can adversely affect performance (Coughlan et al., ; Geyskens, Gielens & Dekimpe, ; Pu et al., ). As Van Baal and Dach (, p. 76) describe:If distribution modes compete with one another for an exogenous sales potential, an additional channel would result in increased total distribution costs without adding to overall sales.…”
Section: Developments In Supply Chain Managementmentioning
confidence: 99%
“…As Van Baal and Dach () observe, the benefits of an added channel may not be limited to the sales generated through the channel since multiple channels may complement each other and increase total sales. By adding an Internet channel, manufacturers can increase sales via market expansion, brand switching, and relationship deepening (Geyskens et al., ; Ishfaq et al., ; Pu et al., ). Multiple channels can also reduce distribution and transaction costs.…”
Section: Developments In Supply Chain Managementmentioning
confidence: 99%
“…Managerial Perspectives.-In the wake of developments in cross-channel shopping and multi-channel distribution systems, two different perspectives have emerged to guide distribution strategy. The first is that multiple channels of distribution are harmful to performance given they can lead to free riding (Sandrine, 2013), cross-channel cannibalization (Pu, Gong & Han, 2017), and negative spillover effects across channels (Bernstein et al, 2009;Cao, Zhang & Chen, 2008;Dan, Xu & Liu, 2012;Van Birgelen, De Jong & De Ruyter, 2006;Xia, Xiao & Zhang, 2017;Xing & Liu, 2012). These impacts reflect different forms of channel conflict that can adversely affect performance (Coughlan et al, 2001;Geyskens, Gielens & Dekimpe, 2002;Pu et al, 2017).…”
Section: Management Of Supply Chainsmentioning
confidence: 99%
“…The second perspective is that multi-channel distribution systems can be beneficial to performance where they are properly managed (Avery, Steenburgh, Deighton & Caravella, 2012;Ishfaq, Defee, Gibson & Raja, 2016;Neslin & Shankar, 2009;Pu et al, 2017). This perspective differs from the view that multiple Volume 55, Number 2 Journal of Supply Chain Management channels encourage free riding and therefore harm firm performance (Bernstein et al, 2009).…”
Building on research in supply chain management (SCM) that aids in the workings of society, the authors illustrate how SCM research can advance public policy and law. Using competition policy and antitrust law as an example, they consider how developments in SCM thought and practice augment economic understanding of vertical restraints involving minimum resale price maintenance (RPM). Developments affecting the organization of supply chains, firm‐level strategies for the management of retail distribution, and the interactions of supply chain participants are investigated. The findings advance knowledge of the primary procompetitive and anticompetitive theories of RPM found in competition policy and antitrust law. They also illustrate the potential of SCM to expand its reach and impact through studies that address the interplay of SCM and public policy and law.
“…The first is that multiple channels of distribution are harmful to performance given they can lead to free riding (Sandrine, ), cross‐channel cannibalization (Pu, Gong & Han, ), and negative spillover effects across channels (Bernstein et al., ; Cao, Zhang & Chen, ; Dan, Xu & Liu, ; Van Birgelen, De Jong & De Ruyter, ; Xia, Xiao & Zhang, ; Xing & Liu, ). These impacts reflect different forms of channel conflict that can adversely affect performance (Coughlan et al., ; Geyskens, Gielens & Dekimpe, ; Pu et al., ). As Van Baal and Dach (, p. 76) describe:If distribution modes compete with one another for an exogenous sales potential, an additional channel would result in increased total distribution costs without adding to overall sales.…”
Section: Developments In Supply Chain Managementmentioning
confidence: 99%
“…As Van Baal and Dach () observe, the benefits of an added channel may not be limited to the sales generated through the channel since multiple channels may complement each other and increase total sales. By adding an Internet channel, manufacturers can increase sales via market expansion, brand switching, and relationship deepening (Geyskens et al., ; Ishfaq et al., ; Pu et al., ). Multiple channels can also reduce distribution and transaction costs.…”
Section: Developments In Supply Chain Managementmentioning
confidence: 99%
“…Managerial Perspectives.-In the wake of developments in cross-channel shopping and multi-channel distribution systems, two different perspectives have emerged to guide distribution strategy. The first is that multiple channels of distribution are harmful to performance given they can lead to free riding (Sandrine, 2013), cross-channel cannibalization (Pu, Gong & Han, 2017), and negative spillover effects across channels (Bernstein et al, 2009;Cao, Zhang & Chen, 2008;Dan, Xu & Liu, 2012;Van Birgelen, De Jong & De Ruyter, 2006;Xia, Xiao & Zhang, 2017;Xing & Liu, 2012). These impacts reflect different forms of channel conflict that can adversely affect performance (Coughlan et al, 2001;Geyskens, Gielens & Dekimpe, 2002;Pu et al, 2017).…”
Section: Management Of Supply Chainsmentioning
confidence: 99%
“…The second perspective is that multi-channel distribution systems can be beneficial to performance where they are properly managed (Avery, Steenburgh, Deighton & Caravella, 2012;Ishfaq, Defee, Gibson & Raja, 2016;Neslin & Shankar, 2009;Pu et al, 2017). This perspective differs from the view that multiple Volume 55, Number 2 Journal of Supply Chain Management channels encourage free riding and therefore harm firm performance (Bernstein et al, 2009).…”
Building on research in supply chain management (SCM) that aids in the workings of society, the authors illustrate how SCM research can advance public policy and law. Using competition policy and antitrust law as an example, they consider how developments in SCM thought and practice augment economic understanding of vertical restraints involving minimum resale price maintenance (RPM). Developments affecting the organization of supply chains, firm‐level strategies for the management of retail distribution, and the interactions of supply chain participants are investigated. The findings advance knowledge of the primary procompetitive and anticompetitive theories of RPM found in competition policy and antitrust law. They also illustrate the potential of SCM to expand its reach and impact through studies that address the interplay of SCM and public policy and law.
“…When marketing through multiple channels, enterprises must also account for the wide variability in the composition of customers' transaction costs [30,31]. Despite developing multiple channels being the optimal marketing strategy for enterprises, they encounter problems in balancing the amount of investment or resource allocation in different channel types [32,33].…”
The primary purpose of this study was to explore how food dealers develop methods that facilitate transaction efficiency and how they select the optimal food channels. This study establishes a model according to the impact of transaction cost factors on consumers' decision-making regarding purchase of fresh snack foods. Using fresh snack foods in Taiwan as an example, this study employed a fuzzy analytic network process to solve decision-making problems with multiple criteria by comparing the interaction between each transaction cost factor to obtain the factor weightings as well as the weightings of the transaction costs at each decision stage. This study found that food safety assurance and providing sufficient nutrition information were the most essential topics; thus, the optimal choice for snack food producers is to develop retail outlets. This study construction process proposed is innovative and operational, and the results may provide a reference for snack food dealers or microfood enterprises to assist them in developing their food channels.
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