Pricing policy and coordination for a distribution channel with manufacturer suggested retail price

Purpose – The purpose of this paper is to measure and evaluate the performance efficiency of manufacturing small and medium enterprises (SMEs) in Turkey. The industry-based efficiency evaluation provides management with information regarding the relatively best practice sectors in the observation sets and locates the relatively inefficient sectors by comparing with the best practiced ones. Design/methodology/approach – In this study, an evaluation model is constructed to come up with efficiency analysis for manufacturing SMEs and output-oriented CCR data envelopment analysis approach is utilized to figure out best practiced SMEs. The proposed efficiency measurement model is utilized for 744 SMEs from ten different sectors. Based on the efficiency results, efficiency score of the studied sectors are compared and improvements needed for becoming an efficient unit are reported. Findings – The results showed that 94 companies efficiently performed in general perspective. The analysis also revealed that “Wearing Apparel, Dressing and Dyeing of Fur” and “Chemicals and Chemical Products” manufacturing sectors were found to be the inefficient of the overall usage of strategic competitive priorities. Originality/value – Based on the previous literature, this study brings more recent perspectives such as service activities and financial power to the four main competitive priorities of cost, quality, flexibility and delivery. The variables used in this study are as follows: Proximity to Market, Ability to Control Costs, Potential Labor Force, Product Quality, Prompt Advantage, Certification, Product Assortment, Distribution Channel, Pricing Policy, Service, Capital, Machinery-Equipment Track, Profit Margin and Market Share.

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Factors influencing price premiums of Australian wine in the UK market

International Journal of Wine Business Research ◽

10.1108/ijwbr-02-2017-0009 ◽

2018 ◽

Vol 30 (1) ◽

pp. 96-116 ◽

Cited By ~ 2

Author(s):

Elyse Shane ◽

MD Wahid Murad ◽

Susan Freeman

Keyword(s):

Distribution Channel ◽

Hedonic Pricing ◽

Retail Price ◽

Product Attributes ◽

Content Type ◽

Price Premiums ◽

Level Data ◽

Retail Prices ◽

Pricing Theory ◽

The Uk

Purpose The purpose of this paper is to determine and analyse that factors that could potentially influence price premiums of Australian wine in the UK market. The authors integrated the economic-based hedonic pricing theory and marketing export pricing literature. The authors demonstrate a potential solution to limitations in knowledge of market-level data and industry wide competition, currently lacking in export pricing studies. Design/methodology/approach Using data extracted from wine-searcher.com and using multiple regression as the main analytical technique, the authors examined the relationships between actual retail prices UK consumers pay for Australian wine and product attributes. The authors compared the moderating influence of distribution channel (retail choice) on these relationships. Findings The results provide insights in export pricing literature, and the authors support better theoretical explanations for hedonic pricing studies in export marketing. The authors found two types of wine attributes – “brand” and “region of origin” – that attract price premiums. While relationships between variety and retail price, as well as age and retail price are less clear, the authors provide some support. Research limitations/implications One limitation of this hedonic pricing study is the inability to explain why certain relationships between product attributes and price premiums exist. Studies such as these could be improved by utilising both consumer- and firm-level data. Practical implications Whilst final prices paid by consumers are beyond the control of producers, understanding the relationships between retail prices, retail choices and product attributes are of strategic importance. Understanding the role consumer preferences play in determining prices they ultimately pay is of great value when determining export/retail pricing strategies. Social implications Consumers and firm managers are jointly able to provide comprehensive explanations on why certain attributes attract price premiums. The integration of economic and consumer-based theories provides a holistic understanding of the influence of retail choices and product attributes on retail prices. Originality/value The authors drew on the hedonic pricing theory linking product attributes with retail prices, which is vital for understanding market share and brand image. The authors identified which product attributes and which distribution channels (retail choices) are valuable to consumers. Deeper understanding of these issues is important for producers.

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The impact of firms’ social ties with customers on dual-channel supply chains

Marketing Intelligence & Planning ◽

10.1108/mip-04-2019-0196 ◽

2019 ◽

Vol 38 (6) ◽

pp. 777-796

Author(s):

Wei Wei ◽

Shue Mei ◽

Jiameng Yang ◽

Zhiyong John Liu

Keyword(s):

Social Media ◽

Supply Chain ◽

Social Ties ◽

Wholesale Price ◽

Information Service ◽

Distribution Channel ◽

Retail Price ◽

The Other ◽

Content Type ◽

Dual Channel

Purpose More and more firms are utilizing social media as a distribution channel to sell products. By establishing business accounts on social media firms provide information service to strengthen their relationship with customers and boost sales. The purpose of this paper is to investigate the pricing, information service provision and channel strategies of firms who sell products through social media. Design/methodology/approach The authors use a game theoretical model to study a dual-channel supply chain consisting of one manufacturer and one retailer. Two scenarios are considered – under one scenario the manufacturer and under the other the retailer, respectively, solely provides information service. Both firms’ pricing decisions and profits are compared. Findings The authors find that in the dual-channel model with either the manufacturer or the retailer providing information service to enhance the demand: a firm that has stronger social ties with customers is willing to provide more information services; when the manufacturer provides information service, it charges a direct price higher than the wholesale price, and whether the direct-channel price exceeds the retail price depends on the strength of the manufacturer’s social ties with customers; when the retailer provides information service, the direct price is equal to the wholesale price, both lower than the retail price; and a firm always prefers itself rather than the other firm to provide information service. However, the whole supply chain is better off if the manufacturer rather than the retailer provides information service. Research limitations/implications Besides the relationship between firms and customers, the peer relationship among customers also impacts the supply chain performance, which might be studied in the future. Originality/value The study is novel in theoretically exploring the influence of firms’ social relationship with customers on firms’ pricing and channel strategies.

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Marketing strategies of Polish companies on foreign markets

Management ◽

10.2478/manment-2018-0026 ◽

2018 ◽

Vol 22 (2) ◽

pp. 110-120

Author(s):

Wojciech Grzegorczyk

Keyword(s):

Market Research ◽

Distribution Channel ◽

Foreign Market ◽

Marketing Strategies ◽

The Internet ◽

Specific Character ◽

Foreign Markets ◽

Pricing Policy ◽

Research Findings ◽

Initial Research

Summary In the years 2017-2018 the Marketing Faculty of Łódź University conducted a research project “Marketing strategies of companies based in Łódź Voivodeship on foreign markets”. The aim of this text is to present the initial research findings strategies implemented by surveyed companies on foreign markets. The examined companies seldom attempted to conduct the foreign market research and the marketing strategy that they used was strictly related to the prevailing form of expansion into foreign markets, i.e. export. Both the product and the pricing policy were adapted to the specific character of the foreign market. Activities in the area of distribution were limited to indirect export and they were not initiated by the examined companies. The prevailing majority of companies used the Internet, trade fairs and exhibitions in their promotional activities. The intermediaries in the distribution channel were responsible for subsequent promotional activities. They involve marketing strategies typical for small and medium companies and their content depends on the intermediaries in the distribution channel on foreign markets.

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EXPRESS: Service Provision in Distribution Channels

Journal of Marketing Research ◽

10.1177/00222437211073818 ◽

2021 ◽

pp. 002224372110738

Author(s):

Haresh Gurnani ◽

Shubhranshu Singh ◽

Sammi Tang ◽

Huaqing Wang

Keyword(s):

Service Provision ◽

Wholesale Price ◽

Distribution Channel ◽

Distribution Channels ◽

Retail Price ◽

Fixed Cost ◽

Complex Product ◽

Channel Service

Consumers may need help using an inherently complex product after purchase. This paper studies a manufacturer’s and a retailer’s incentives to provide pre-sales service and after-sales support in a distribution channel. The authors consider a model in which a manufacturer makes wholesale-price and channel-service decisions. Subsequently, a retailer makes retail-price and channel-service decisions. They find that, in the equilibrium, both channel members provide pre-sales service. If the fixed-cost investment needed to enhance the effectiveness of after-sales support is small, the manufacturer lets the retailer provide after-sales support. But when it is above a threshold and the retailer becomes unwilling to invest in providing after-sales support, the manufacturer steps in and invests in providing it. As expected, when the fixed cost is too large, the manufacturer also opts out of providing after-sales support. Interestingly, when the retailer provides after-sales support, the level of pre-sales service and the demand for after-sales support can simultaneously be the highest among all configurations. Finally, the authors demonstrate the robustness of their main results by studying alternative channel-service configurations.

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Infinity Period Dynamic Control of a Kind of Channel’s Price and Brand Investment: A Differential Game Method

Mathematical Problems in Engineering ◽

10.1155/2015/721970 ◽

2015 ◽

Vol 2015 ◽

pp. 1-10

Author(s):

Kaihong Wang ◽

Li Cheng ◽

Chuan Ding

Keyword(s):

Control Problem ◽

Differential Game ◽

Dynamic Optimization ◽

Stackelberg Game ◽

Dynamic Control ◽

Distribution Channel ◽

Optimization Theory ◽

Retail Price ◽

Hamilton Function ◽

Static Game

The infinity period dynamic control problem of distribution channel was studied with differential game approach. Four differential dynamic control models of coordinated channel game, uncoordinated static game, Stackelberg game with manufacture controlled, and Stackelberg game withnretailers controlled were constructed. Some results applied dynamic optimization theory made with Hamilton function. The conclusions are as follows. (1) Optimization brand investment controlled by manufacture has nothing to do with time. (2) Retail price was the most minimum when channel was integrated. (3) Manufacture’s profits of uncoordinated static game and Stackelberg game with manufacture controlled were more than Stackelberg game withnretailers controlled. (4) Retailer’s profits of Stackelberg game withnretailers controlled were less than Stackelberg game with manufacture controlled. (5) Channel’s total profits of Stackelberg game withnretailers controlled were the most minimum.

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