A supply chain model with direct and retail channels
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"A supply chain model with direct an..." refers methods in this paper
...It is different from the horizontal differentiation models such as Hotelling’s local framework (Hotelling 1929)....
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...It is different from the horizontal differentiation models such as Hotelling’s local framework (Hotelling 1929). v v rs s> d d d We next present the development of demand functions based on the consumer choice model....
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"A supply chain model with direct an..." refers background in this paper
...Gronroos (1984) discusses how to measure service quality as defined from customers’ perspective....
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"A supply chain model with direct an..." refers background in this paper
...Mangalindan (2005) observes that consumers are more likely to purchase certain product categories than others via direct channel. We also see that some industries have seen a faster growth in dual channel supply chains than others. Such observations suggest that difference in product/cost characteristics of the two channels as well as consumer preference for different channels deeply influence the performance of such supply chains. Our next objective is to incorporate such factors into our model and develop managerial insights into their influence. We analyze how such factors that are important in shaping consumer behavior and determining channel efficiency affect the model. Specifically, we examine the effects of service quality, consumer sensitivity to service, cost, and wholesale price on pricing and equilibrium outcomes. In addition, we investigate how demand uncertainty affects the equilibrium. Several studies have examined dual channel supply chains. Rhee and Park (2000) study a hybrid channel design problem, assuming that there are two consumer segments: a price sensitive segment and a service sensitive segment....
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...Mangalindan (2005) observes that consumers are more likely to purchase certain product categories than others via direct channel....
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