Going direct to market: The influence of exchange conditions

Abstract

When faced with the strategic choice of going direct to market versus the option of using intermediaries, a firm is posited to evaluate the benefits to customers from going direct to market, and the transaction costs involved in using intermediaries. I n this paper, we discuss how these evaluations might differ depending upon the microcharacteristics of the exchange domain. Based on these theoretical considerations, specific propositions are offered regarding the conditions under which firms might rely more heavily on direct channels. These propositions are tested by conducting a cross-sectional empirical analysis using a large sample of manufacturing fir.ms operating in diverse exchange domains. We also control for the impact of macrolevel environmental characteristics, as well as firm-level characteristics that may influence the direct to market decision. Our empirical results confirm that customer benefits and transaction costs are important considerations in going direct to market.

Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa

“…Based on this reasoning, we hypothesize that increased behavioral uncertainty will lead to an increased use of vertical integration. This general hypothesis has gained some degree of support in empirical research (for example, Anderson, 1985;Anderson & Schmittlein, 1984;Gatignon & Anderson, 1988;John & Weitz, 1988;Majumdar & Ramaswamy, 1994). …”

A model of the antecedents of multiple channel usage

“…Product line sophistication increases the level of consumer involvement (Schiffman and Kanuk, 1991) and, therefore, affects their desired service levels. Research also indicates that it affects the channel activities to be performed and the need for co-ordination and control that firms should exert over distribution channels (Majumdar and Ramaswamy, 1995). Sophisticated consumers have more complex service needs, require more service, and adopt innovations earlier than others (Rogers, 1995), and this should also influence channel design.…”

Costes de transacción e integración vertical: Una aplicación al sector de denominación de origen calificada Rioja

“…Esta hipótesis general ha obtenido cierto grado de apoyo en la investigación empírica (por ejemplo, Anderson y Schmittlein, 1984;Anderson, 1985;Gatignon y Anderson, 1988;John y Weitz, 1988;Majumdar y Ramaswamy, 1994).…”