The effects of brand loyalty on competitive price promotional strategies
Management Science
Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
Bundling Information Goods: Pricing, Profits, and Efficiency
Management Science
Coordinating Channels Under Price and Nonprice Competition
Marketing Science
When and How is the Internet Likely to Decrease Price Competition?
Marketing Science
Bundling and Competition on the Internet
Marketing Science
Marketing Science
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Organizing Distribution Channels for Information Goods on the Internet
Management Science
Implications of Reduced Search Cost and Free Riding in E-Commerce
Marketing Science
A Multichannel Model of Separating Equilibrium in the Face of the Digital Divide
Journal of Management Information Systems
Journal of Management Information Systems
Journal of Management Information Systems
When Online Reviews Meet Hyperdifferentiation: A Study of the Craft Beer Industry
Journal of Management Information Systems
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The Internet provides an additional channel for manufacturers to provide information about and sell their products. The electronic channel has the advantage of reduced search cost and its reach is increasing, but it has limited capability to provide product information. This paper examines how Internet technology affects a monopoly manufacturer's distribution problem in an environment where product information is important for consumers to identify their ideal product. The model suggests that a manufacturer uses the electronic channel in addition to the physical channel when the product information is very valuable and product information is largely about digital attributes, or when the product information is not valuable. The model also suggests that when the manufacturer chooses to sell through both channels, there is an increase in price competition between the two channels such that the manufacturer need not sell through the electronic retailer with the highest reach. Also, when a large proportion of consumers have access to both channels, the manufacturer may sell through only one channel. The paper also examines the case where the manufacturer operates in the electronic channel and the case where the retailers are integrated.