Managing a distribution channel under asymmetric information with performance requirements
Management Science - Special issue: Frontier research on information systems and economics
Decision Support Systems - Special issue on economics of electronic commerce
Research NoteThe Benefits of Personalized Pricing in a Channel
Marketing Science
Advance selling and internet intermediary: travel distribution strategies in the e-commerce age
Proceedings of the ninth international conference on Electronic commerce
Optimal Multi-Channel Delivery of Expertise: An Economic Analysis
International Journal of Electronic Commerce
Profit sharing and firm performance in the manufacturer-retailer dual-channel supply chain
Electronic Commerce Research
Manufacturers' Distribution Strategy in the Presence of the Electronic Channel
Journal of Management Information Systems
Optimal Digital Content Distribution Strategy in the Presence of the Consumer-to-Consumer Channel
Journal of Management Information Systems
Retailers' Multichannel and Price Advertising Strategies
Marketing Science
Internet Channel Entry: A Strategic Analysis of Mixed Channel Structures
Marketing Science
Exclusive Territories and Manufacturers' Collusion
Management Science
Pooling, Access, and Countervailing Power in Channel Governance
Management Science
Pricing and production decisions in dual-channel supply chains with demand disruptions
Computers and Industrial Engineering
The impacts of piracy and supply chain contracts on digital music channel performance
Decision Support Systems
Exclusive Channels and Revenue Sharing in a Complementary Goods Market
Marketing Science
Referral service of infomediary in B2C supply chain
International Journal of Networking and Virtual Organisations
Cargo Capacity Management with Allotments and Spot Market Demand
Operations Research
Analysis of emerging technology adoption for the digital content market
Information Technology and Management
Pricing games of mixed conventional and e-commerce distribution channels
Computers and Industrial Engineering
Coordinating Multi-Channel Pricing of Seasonal Goods
International Journal of E-Business Research
Coordinating Multi-Channel Pricing of Seasonal Goods
International Journal of E-Business Research
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The advent of e-commerce has prompted many manufacturers to redesign their traditional channel structures by engaging in direct sales. The model conceptualizes the impact of customer acceptance of a direct channel, the degree to which customers accept a direct channel as a substitute for shopping at a traditional store, on supply-chain design. The customer acceptance of a direct channel can be strong enough that an indepent manufacturer would open a direct channel to compete with its own retailers. Here, direct marketing is used for strategic channel control purposes even though it is inefficient on its own and, surprisingly, it can profit the manufacturer even when so direct sales occur. Specifically, we construct a price-setting game between a manufacturer and its independent retailer. Direct marketing, which indirectly increases the flow of profits through the retail channel, helps the manufacturer improve overall profitability by reducing the degree of inefficient price double marginalization. While operated by the manufacturer to constrain the retailer's pricing behavior, the direct channel may not always be detrimental to the retailer because it will be accompanied by a wholesale price reduction. This combination of manufacturer pull and push can benefit the retailer in equilibrium. Finally, we show that the mere threat of introducing the direct channel can increase the manufacturer's negotiated share of cooperative profits even if price efficiency is obtained by using other business practices.