Abstract
Channel coordination plays a strategically important role in a multi-channel context. In this study, we focus on the strategic roles played by product distribution and coordinative structure with profit sharing in the multi-channel context. We use an analytical model to show that the brand differentiation is not a dominant distribution strategy to coordinate the channel conflict and improve channel performance; the manufacturer can sell identical brands through its online and traditional channels and actively employ a cooperative structure with profit coordination to maximize the entire distribution of channel profit and create a win-win channel strategy for each channel member. In addition, we also investigate the impact of an online channel on the whole distribution channel performance under the different structures. Our results show that coordinative market structure provides competitive advantages for the manufacturer to open an online channel, particularly for these manufacturers whose products are weakly compatible with the online marketing. Based on our results, we derive optimal market strategies for the multi-channel manufacturer and retailer.
| Original language | English |
|---|---|
| Pages (from-to) | 19-26 |
| Number of pages | 8 |
| Journal | Journal of Retailing and Consumer Services |
| Volume | 18 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1 Jan 2011 |
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Keywords
- Channel coordination
- Game theory
- Marketing strategy
- Online retailing
- Product distribution
Cite this
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Product distribution and coordination strategies in a multi-channel context. / Yan, Ruiliang; Guo, Peijun; Wang, John; Amrouche, Nawel.
In: Journal of Retailing and Consumer Services, Vol. 18, No. 1, 01.01.2011, p. 19-26.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Product distribution and coordination strategies in a multi-channel context
AU - Yan, Ruiliang
AU - Guo, Peijun
AU - Wang, John
AU - Amrouche, Nawel
PY - 2011/1/1
Y1 - 2011/1/1
N2 - Channel coordination plays a strategically important role in a multi-channel context. In this study, we focus on the strategic roles played by product distribution and coordinative structure with profit sharing in the multi-channel context. We use an analytical model to show that the brand differentiation is not a dominant distribution strategy to coordinate the channel conflict and improve channel performance; the manufacturer can sell identical brands through its online and traditional channels and actively employ a cooperative structure with profit coordination to maximize the entire distribution of channel profit and create a win-win channel strategy for each channel member. In addition, we also investigate the impact of an online channel on the whole distribution channel performance under the different structures. Our results show that coordinative market structure provides competitive advantages for the manufacturer to open an online channel, particularly for these manufacturers whose products are weakly compatible with the online marketing. Based on our results, we derive optimal market strategies for the multi-channel manufacturer and retailer.
AB - Channel coordination plays a strategically important role in a multi-channel context. In this study, we focus on the strategic roles played by product distribution and coordinative structure with profit sharing in the multi-channel context. We use an analytical model to show that the brand differentiation is not a dominant distribution strategy to coordinate the channel conflict and improve channel performance; the manufacturer can sell identical brands through its online and traditional channels and actively employ a cooperative structure with profit coordination to maximize the entire distribution of channel profit and create a win-win channel strategy for each channel member. In addition, we also investigate the impact of an online channel on the whole distribution channel performance under the different structures. Our results show that coordinative market structure provides competitive advantages for the manufacturer to open an online channel, particularly for these manufacturers whose products are weakly compatible with the online marketing. Based on our results, we derive optimal market strategies for the multi-channel manufacturer and retailer.
KW - Channel coordination
KW - Game theory
KW - Marketing strategy
KW - Online retailing
KW - Product distribution
UR - http://www.scopus.com/inward/record.url?scp=78650568886&partnerID=8YFLogxK
U2 - 10.1016/j.jretconser.2010.09.001
DO - 10.1016/j.jretconser.2010.09.001
M3 - Article
VL - 18
SP - 19
EP - 26
JO - Journal of Retailing and Consumer Services
JF - Journal of Retailing and Consumer Services
SN - 0969-6989
IS - 1
ER -