Price strategy, information sharing, and firm performance in a market channel with a dominant retailer

Ruiliang Yan, Chris Anthony Myers, John Wang

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

Purpose: The purpose of this paper is to provide a framework to help the manufacturers to find the optimal decisions regarding the choice of channel member for information sharing. Design/methodology/approach: A game-theoretical model plus Bayesian forecasting is developed to determine the optimal decisions for the manufacturer. Findings: The results show that the optimal strategy for the manufacturer is to engage in information sharing with one small retailer exclusively, such that the manufacturer can gain the most benefit from information sharing arrangement in a marketing channel with a dominant retailer. Research limitations/implications: The present study is analyzed by a theoretical model. Future research can explore the same study by collecting data to engage in an empirical test. Practical implications: This paper provides a useful model framework and pricing strategy for upstream manufacturers who are engaging or planning to engage in information sharing with their retailers. Originality/value: This paper provides practical and solid advice and examples demonstrating the optimal decisions regarding the choice of channel member for information sharing to best benefit of the manufacturer.

Original languageEnglish
Pages (from-to)475-485
Number of pages11
JournalJournal of Product and Brand Management
Volume21
Issue number6
DOIs
StatePublished - 1 Sep 2012

Fingerprint

Marketing
Planning
Firm performance
Price strategy
Information sharing
Retailers
Market channels
Costs
Empirical test
Marketing channels
Optimal strategy
Design methodology
Bayesian forecasting
Pricing strategy

Keywords

  • Channel coordination
  • Forecasting
  • Game theory
  • Information sharing
  • Marketing strategy
  • Prices

Cite this

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Price strategy, information sharing, and firm performance in a market channel with a dominant retailer. / Yan, Ruiliang; Myers, Chris Anthony; Wang, John.

In: Journal of Product and Brand Management, Vol. 21, No. 6, 01.09.2012, p. 475-485.

Research output: Contribution to journalArticleResearchpeer-review

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