EXPRESS: Service Provision in Distribution Channels

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.

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

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.

The Simple Economics of Wholesale Price-Parity Agreements: The Case of the Airline Tickets Distribution Industry*

2020 ◽  
Author(s):  
Jorge Padilla ◽  
Salvatore Piccolo ◽  
Nadine Watson
Keyword(s):  
Competition Policy ◽  
Distribution Systems ◽  
Wholesale Price ◽  
Consumer Welfare ◽  
Distribution Channels ◽  
Retail Price ◽  
Competitive Effects ◽  
Global Distribution Systems ◽  
Airline Tickets ◽  
Strength Of Competition

Abstract This paper clarifies the differences between retail and wholesale price-parity agreements in vertical industries. In contrast to traditional wide and narrow retail price-parity arrangements, the competitive effects of wholesale price-parity depend on the complexity of the vertical supply chain, the business model operated by sellers and distributors, and the strength of competition between direct and indirect distribution channels. While retail price-parity agreements are almost always anticompetitive, wholesale price-parity agreements may positively affect consumer welfare when direct and indirect distribution channels are close substitutes. To demonstrate the relevance of our analysis for competition policy, we illustrate our findings by referring to an industry that has recently attracted policy and regulatory interest on both sides of the Atlantic: the airline ticket distribution industry. We find that, in this industry, while wholesale price-parity agreements always harm airlines, Global Distribution Systems (GDSs) have preferences more aligned with consumers: when consumers benefit from these provisions, GDSs benefit too. JEL: K21, L13, L40

scholarly journals Choice of Modern Food Distribution Channels and Its Welfare Effects: Empirical Evidence from Taiwan

Agriculture ◽  
2021 ◽  
Vol 11 (6) ◽  
pp. 499
Author(s):  
Yun-Cih Chang ◽  
Min-Fang Wei ◽  
Yir-Hueih Luh
Keyword(s):  
Control Function ◽  
Smallholder Farmers ◽  
Distribution Channel ◽  
Marketing Channel ◽  
Distribution Channels ◽  
Food Distribution ◽  
Economic Effects ◽  
Farm Households ◽  
Farm Household ◽  
Decomposition Approach

The determinants and/or economic effects of modern food distribution channels have attracted much attention in previous research. Studies on the welfare consequences of modern channel options, however, have been sparse. Based on a broader definition of modern food distribution channels including midstream processors and downstream retailers (supermarkets, hypermarkets, brand-named retailers), this study contributes to the existing body of knowledge by exploring the distributional implications of farm households’ choice of modern food distribution channels using a large and unique farm household dataset in Taiwan. Making use of the two-step control function approach, we identify the effect of modern food distribution options on farm households’ profitability. The results reveal selling farm produce to modern food distributors does not produce a positive differential compared to the traditional outlets. Another dimension of farm household welfare affected by the choice of modern food distribution channel is income inequality. We apply the Lerman and Yitzhaki decomposition approach to gain a better understanding of the effect of the marketing channel option on the overall distribution of farm household income. The Gini decomposition of different income sources indicates that the choice of modern food distribution channels results in an inequality-equalizing effect among the farm households in Taiwan, suggesting the inclusion of smallholder farmers in the modern food distribution channels improves the overall welfare of the rural society.

scholarly journals ANALISIS RUMAH KABEL BAWAH TANAH PADA PROYEK PEKERJAAN JARINGAN UTILITAS SKTT 150 KV PLUMPANG - GAMBIR

2018 ◽  
Vol 6 (2) ◽  
pp. 61-70
Author(s):  
Redaksi Tim Jurnal
Keyword(s):  
Carrying Capacity ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Research Data ◽  
Land Acquisition ◽  
Shear Stability ◽  
Cable Networks ◽  
Underground Cable ◽  
The Stability ◽  
Soil Instability

Underground cable distribution channels to be excellent especially in big cities like Jakarta. This is because the underground cable distribution is a solution to the difficulty of land acquisition that will be used for top cable networks. Nevertheless, there is an important factor to be considered in implementing the underground cable distribution channel that is the condition of the soil through which the cable. This study aims to determine the dimensions of the cable house was safe from the soil instability. The soil instability are the stability of bolsters and the shear stability and take into account the carrying capacity of the foundation used. The data used as a reference in the analysis using research data that has been done previously. In stability analysis and foundation bearing capacity used Geo5 software demo version aid. The results obtained from the analysis, with variations on the dimensions of the cable house used are 2 mx 2 m, 2.5 mx 2.5 m and 3 mx 3 m, it is seen that the greater the dimensions used then the security number of stability bolsters, soil shear stability and the carrying capacity of the foundation decreases. This is due to the greater the dimensions of the cable house used, the greater the burden borne by the soil.

scholarly journals Distribution Channels for Wine Tourism in New Zealand

2021 ◽  
Author(s):  
◽  
Ying Liu
Keyword(s):  
New Zealand ◽  
Distribution Channel ◽  
Information Provision ◽  
Distribution Channels ◽  
Tourism Industry ◽  
Corporate Groups ◽  
Wine Tourism ◽  
Factors Influencing ◽  
Tourism Product ◽  
Direct Distribution

<p>This study examines the structure of the distribution channels and the underlying factors influencing the most prominent channel choices within the wine tourism industry in New Zealand. This research specifically compares wine tourism in Marlborough and Auckland. It aims to provide a better understanding of the distribution channels for practitioners in the wine tourism industry, with the hope of assisting them to develop their wine tourism businesses successfully and manage the businesses growth effectively. This is a destination-based study performed by employing qualitative approaches focusing on the supply-side through semi-structured interviews. These in-depth interviews were conducted with the owners or managers of the local wine tour operators and wineries in the two regions. The findings generally show that wine tourism businesses place a clear priority on direct distribution of their wine tourism product to visitors “at destination”; the majority of customers of all these businesses are independent visitors. Specifically, overseas independent tourists comprise the largest portion of customers to local wine tour operators in Marlborough and Auckland. The wine tour operators work more actively with intermediaries and reach tourists “in market”, “while travelling” and “at destination” than wineries in these two regions. Marlborough wineries and Auckland wine tour operators and wineries receive domestic corporate groups, most of whom are approached “at destination” with direct distribution. Compared with wineries in Marlborough, more corporate groups use Auckland wine tour operators to visit wineries. Marlborough wineries and wine tour operators, and Auckland wine tour operators receive more international visitors, whereas the majority of visitors to Auckland wineries are from Auckland. When considering the function of wine tourism distribution channels, information provision, reservation and purchase are nearly equally important to local wine tour operators in both Marlborough and Auckland; the most widely used functions for Marlborough wineries is information provision; for Auckland wineries, information provision and purchase play significant roles in the distribution of wine tourism product. Factors influencing distribution channel choice include information provision cost, commissions, businesses’ attitudes towards tourism, perceptions of the Internet, service diversity, capacity, accessibility, availability, market segments, reputation and nature of intermediaries.</p>

scholarly journals Paths to the Market: analysing tourism distribution channels for community-based tourism

2020 ◽  
Author(s):  
Christian Schott
Keyword(s):  
Central Government ◽  
Market Access ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Channel Structure ◽  
Economic Sustainability ◽  
Community Based ◽  
Five Factors ◽  
Information And Communication ◽  
Distribution Structure

<p>This research investigates distribution channels as a critical business mechanism for community-based tourism (CBT) by connecting CBT projects with the market. Specifically, it examines the distribution channels structure of a culture & heritage focused CBT project in Cambodia, explores the key influencing factors behind the observed structure, and develops recommendations for improved economic sustainability. The paper is informed by 21 interviews which were conducted with respondents from Banteay Chhmar CBT, key private sector businesses, NGOs, local and central government, and CBT experts. The examination of the distribution channel structure reveals considerable channel diversity which sees both direct and a variety of indirect channels included in the distribution mix. Due to the community-guided nature of the CBT project, intermediaries had a very strong presence in the distribution structure and maintained both direct and multi-layered indirect channels with consumers. Five factors were identified to underlie the observed distribution structure: commissionable product, product characteristics and market access, information and communication technology, partnership issues, and community capacity. Based on these findings a range of recommendations are proposed that seek to improve the distribution channels related economic sustainability of the CBT project.</p>

scholarly journals Emergency Coordination Model of Fresh Agricultural Products’ Three-Level Supply Chain with Asymmetric Information

2016 ◽  
Vol 2016 ◽  
pp. 1-9 ◽  
Author(s):  
Juan Yang ◽  
Haorui Liu ◽  
Xuedou Yu ◽  
Fenghua Xiao
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Nonlinear Function ◽  
Retail Price ◽  
Agricultural Products ◽  
Agricultural Product ◽  
Coordination Model ◽  
Emergency Events

In consideration of influence of loss, freshness, and secret retailer cost of products, how to handle emergency events during three-level supply chain is researched when market need is presumed to be a nonlinear function with retail price in fresh agricultural product market. Centralized and decentralized supply chain coordination models are studied based on asymmetric information. Optimal strategy of supply chain in dealing with retail price perturbation is caused by emergency events. The research reveals robustness for optimal production planning, wholesale price for distributors, wholesale price for retailers, and retail price of three-level supply chain about fresh agricultural products. The above four factors can keep constant within a certain perturbation of expectation costs for retailers because of emergency events; the conclusions are verified by numerical simulation. This paper also can be used for reference to the other related studies in how to coordinate the supply chain under asymmetric and punctual researches information response to disruptions.

Global E-Banking Trends

2010 ◽  
pp. 1-16
Author(s):  
Sujana Adapa
Keyword(s):  
Financial Services ◽  
Management Strategies ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Alternative Strategy ◽  
Future Directions ◽  
Bank Branches ◽  
Industrialized Nations ◽  
Traditional Mode ◽  
The Impact

The traditional mode of delivering products and services by banks to the consumers’ is through a single distribution channel and that is physical bank branches. Financial services industry is metamorphosing due to the advent of internet, rapid technological evolutions, deregulation, globalization as well as the impact of changing competitive and regulatory forces. In order to cope with the quick changes in the business scenario, banks started to rely on distribution channels as an alternative strategy for differentiation and gaining further competitive advantage. The abovementioned paved way for the development of the ebanking phenomena. This chapter attempts to provide a comprehensive explanation of what ebanking is, the evolution of ebanking, existing trends of ebanking in developed, developing and newly industrialized nations, future directions for further possible research and concluding remarks. The content provided in this chapter would be useful for existing and potential banks to better understand the global ebanking trends and thus aid in the effective formulation of channel management strategies and reap the benefits out of it.

Managing Conflict in Distribution Channels: A Laboratory Study

1973 ◽  
Vol 10 (2) ◽  
pp. 169-179 ◽  
Author(s):  
Louis W. Stern ◽  
Brian Sternthal ◽  
C. Samuel Craig
Keyword(s):  
Laboratory Study ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Superordinate Goal

This article examines a laboratory methodology for studying interorganizational conflict between members of a distribution channel. A parasimulation approach was used to investigate the effectiveness of a superordinate goal and an exchange-of-persons program in managing conflict.

Sign in / Sign up

Export Citation Format

Share Document