Distribution Channels: An Extension of Exclusive Retailership

Trivedi, Minakshi

doi:10.1287/mnsc.44.7.896

Cited by 186 publications

(105 citation statements)

References 16 publications

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“…(Jeuland and Shugan, 1983). VI can lower retail prices for other channel structures as well -upstream monopolists selling through multiple downstream monopolists (Romano, 1987), a duopoly channel structure with exclusive dealers (McGuire and Staelin, 1983;Coughlan, 1985), and a "Full Channel" structure with two competing manufacturers both selling through both competing retailers (Trivedi, 1998) 10 .…”

Section: Vertical Integration and Decentralizationmentioning

confidence: 99%

“…This is because marketing middlemen soften manufacturer competition as the effect of a price change by a manufacturer on final retail demand is weakened by the intermediary. Other channel restraints such as exclusive dealing (Trivedi, 1998) and exclusive territories (Rey and Stiglitz, 1995) can also reduce manufacturer competition. Moorthy (1988) showed that retail competition is not necessary for decentralization to be a Nash equilibrium.…”

Section: Vertical Integration and Decentralizationmentioning

confidence: 99%

“…Choi (1991) and Trivedi (1998) analyze the effect of demand functional forms and manufacturer-relationship on channel structure. The two papers find a rich set of results on how channel structure decisions are affected by functional form and manufacturerretailer interactions.…”

Section: Vertical Integration and Decentralizationmentioning

confidence: 99%

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Pricing in Marketing Channels

Sudhir¹,

Datta²

2009

Handbook of Pricing Research in Marketing

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This paper provides a critical review of research on pricing within a channel environment. We first describe the literature in terms of increasing time horizons of decision making in a channel setting: (1) retail pass-through (2) pricing contracts and (3) channel design; all of which occur within a given market environment. We then describe the emerging empirical literature on structural econometric models of channels and its use in (1) inferring channel participant behavior and (2) policy simulations in a channel setting. We also discuss potential areas for future research in each area. Pricing in Marketing Channels"Price" and "Channel" are two of the four elements of the marketing mix that managers control, yet they differ fundamentally in how managers can use them to impact market demand.While price is the most flexible, in that managers can change it most easily to impact short-run demand, the distribution channel through which firms reach their end consumer is the least flexible and perhaps the costliest to change in the short run. Therefore, channel design is viewed as part of a firm's long run strategy. Most importantly, in the presence of a typically decentralized distribution channel, an upstream price change by a manufacturer does not affect consumer demand directly, but only through how this upstream price change affects the retail price set downstream in the channel.In his review of the pricing literature, Rao (1984) stated that "the issues of pricing along the distribution channel… have not received much attention in the literature." However, over the last 25 years, this gap has been remedied substantially. The tools of game theory have revolutionized the theoretical analysis of pricing within the channel and clarified the many issues about how prices are set within a channel; more importantly, these analyses have given insights on the optimal long-term channel strategy, given how prices will be set within the channel. A smaller but emerging empirical literature on structural models of channels has provided us insights on the behavior of channel participants and tools to perform policy analysis in a channel setting. The purpose of this article is to provide a critical review of this literature, identify the key themes of understanding that have emerged from research to-date and to identify important gaps in our knowledge that would benefit from future research.Given the short-run nature of price and the long-run nature of the channel, we organize the literature in terms of three key issues of managerial interest that progressively increase in their time horizons for the decision. The three sets of questions are:1. Conditional on the distribution channel (which is fixed in the short run) and other market characteristics, how can a change in upstream price affect the downstream price seen by the end consumer? This question of "pass-through" is the most short-term of the three sets of decisions we consider. Pass-through is of interest to an upstream manager because it determines the extent to w...

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Section: Vertical Integration and Decentralizationmentioning

confidence: 99%

Section: Vertical Integration and Decentralizationmentioning

confidence: 99%

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Pricing in Marketing Channels

Sudhir¹,

Datta²

2009

Handbook of Pricing Research in Marketing

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“…The economic value (V i ) for a product category i, based on the three components, can be formally derived and is given as (McGuire and Staelin, 1983;Subramaniam and Shaw, 2001;Trivedi, 1998):…”

Section: Technology Lock-in Costsmentioning

confidence: 99%

The Effects of Process Characteristics on the Value of B2B E-Procurement

Subramaniam

Shaw

2004

Information Technology and Management

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Abstract:In the previous chapter, we address the issue of value of B2B e-procurement by proposing a valuation framework. Of the three levels of factors identified, the process-related factors are closest to the locus of Web impact and most fundamental in determining the value. In this chapter, we focus on the effect of process characteristics on the value by the dual approach of empirical study and analytical modeling. We use an empirical study to highlight value differences caused by process types. We then develop a more comprehensive economic model to capture theoretically the effects of process types, as well as demand volume and process complexity. The integration of theoretical and empirical approaches provides a strong foundation to develop and evaluate useful adoption strategies for B2B e-procurement.

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“…Anderson and Bao [15] considered the chainto-chain competition in which different manufacturers sell through exclusive retailers that compete for end customers. Trivedi [16] found that the competitions at both retailer and manufacturer levels have significant impacts on the members' profits and prices. Wei and Zhao [17] study the pricing and remanufacturing decisions of two competing supply chains with competition at both manufacturer and retailer levels.…”

Section: Introductionmentioning

confidence: 99%

Interactions of Bargaining Power and Introduction of Online Channel in Two Competing Supply Chains

Wei

Shao

Zhao

2018

Mathematical Problems in Engineering

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This paper studies the effect of dual-channel format on supply chain's competition ability and the effect of different bargaining powers on the competition between two supply chains and the optimal pricing decisions of all supply chain members when one supply chain introduces an online retailing channel. We develop four game models and obtain the optimal pricing decisions in closed form of these models and give some sensitivity analysis through numerical approach. Some new managerial insights are obtained as follows: Regardless of the two supply chain members' bargaining forms, the optimal price, the maximal demand, and the maximal profit decrease as the self-price sensitivity decreases. The industry holds advantage in getting higher profit when the supply chain without online retailing channel is led by the retailer. In addition, we find that a manufacturer as a leader of its supply chain can get more profit when the competing supply chain's leader is the manufacturer than when the competing supply chain's leader is the retailer.

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Distribution Channels: An Extension of Exclusive Retailership

Cited by 186 publications

References 16 publications

Pricing in Marketing Channels

Pricing in Marketing Channels

The Effects of Process Characteristics on the Value of B2B E-Procurement

Interactions of Bargaining Power and Introduction of Online Channel in Two Competing Supply Chains

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