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Journal ArticleDOI

A supply chain model with direct and retail channels

16 Jun 2008-European Journal of Operational Research (North-Holland)-Vol. 187, Iss: 3, pp 691-718
TL;DR: The results suggest that the manufacturer is likely to be better off in the dual channel than in the single channel when the retailer’s marginal cost is high and the wholesale price, consumer valuation and the demand variability are low.
About: This article is published in European Journal of Operational Research.The article was published on 2008-06-16. It has received 490 citations till now. The article focuses on the topics: Marginal cost.
Citations
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01 Jan 1997
TL;DR: In this paper, the authors examine the implications of electronic shopping for consumers, retailers, and manufacturers, assuming that near-term technological developments will offer consumers unparalleled opportunities to locate and compare product offerings.
Abstract: The authors examine the implications of electronic shopping for consumers, retailers, and manufacturers. They assume that near-term technological developments will offer consumers unparalleled opportunities to locate and compare product offerings. They examine these advantages as a function of typical consumer goals and the types of products and services being sought and offer conclusions regarding consumer incentives and disincentives to purchase through interactive home shopping vis-à-vis traditional retail formats. The authors discuss implications for industry structure as they pertain to competition among retailers, competition among manufacturers, and retailer-manufacturer relationships.

2,077 citations

Journal ArticleDOI
TL;DR: In this article, the influence of channel structures and channel coordination on the supplier, the retailer, and the entire supply chain in the context of two single-channel and two dual-channel supply chains was investigated.

509 citations

Posted Content
TL;DR: In this paper, the influence of channel structures and channel coordination on the supplier, the retailer, and the entire supply chain in the context of two single-channel and two dual-channel supply chains was investigated.
Abstract: This paper investigates the influence of channel structures and channel coordination on the supplier, the retailer, and the entire supply chain in the context of two single-channel and two dual-channel supply chains. We extensively study two Pareto zone concepts: channel-adding Pareto zone and contract-implementing Pareto zone. In the channel-adding Pareto zone, both the supplier and the retailer benefit from adding a new channel to the traditional single-channel supply chain. In the contract-implementing Pareto zone, it is mutually beneficial for the supplier and the retailer to utilize the proposed contract coordination policy. The analysis suggests the preference lists of the supplier and the retailer over channel structures with and without coordination are different, and depend on parameters like channel base demand, channel operational costs, and channel substitutability.

497 citations

Journal ArticleDOI
TL;DR: It is analytically show that delivery lead time strongly influences the manufacturer's and the retailer's pricing strategies and profits, and the difference between the demand transfer ratios in the two channels with respect to delivery leadTime and direct sale price, customer acceptance of the direct channel, and product type have great effects on the lead time and pricing decisions.

419 citations

Journal ArticleDOI
TL;DR: In this article, the authors evaluate the impact of price discount contracts and pricing schemes on the dual-channel supply chain competition and show that the scenarios with price discount contract can outperform the non-contract scenarios.

393 citations

References
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Book ChapterDOI
TL;DR: In this paper, it was shown that if the purveyor of an article gradually increases his price while his rivals keep theirs fixed, the diminution in volume of his sales will in general take place continuously rather than in the abrupt way which has tacitly been assumed.
Abstract: After the work of the late Professor F. Y. Edgeworth one may doubt that anything further can be said on the theory of competition among a small number of entrepreneurs. However, one important feature of actual business seems until recently to have escaped scrutiny. This is the fact that of all the purchasers of a commodity, some buy from one seller, some from another, in spite of moderate differences of price. If the purveyor of an article gradually increases his price while his rivals keep theirs fixed, the diminution in volume of his sales will in general take place continuously rather than in the abrupt way which has tacitly been assumed.

7,932 citations


"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....

    [...]

Book
01 Jan 1972
TL;DR: The fourth edition of the Principles of Marketing as discussed by the authors has been revised or completely changed to embrace the growth in e-commerce and recognising Europe's internationalism and the growth of globalisation, examples and cases are drawn from Europe alone, but from the US, Japan, South-East Asia and Africa.
Abstract: Principles of Marketing takes a practical, managerial approach to marketing. Continuing with tradition, it is rich in topical examples and applications that show the major decisions that marketing managers face in their efforts to balance an organisation’s objectives and resources against needs and opportunities in the global marketplace. The Fourth Edition has changed to reflect marketing’s ever changing challenges. All preview cases, marketing insights and end of chapter cases are revised or completely changed to embrace the growth in e-commerce. In addition, recognising Europe’s internationalism and the growth of globalisation, examples and cases are drawn, not from Europe alone, but from the US, Japan, South-East Asia and Africa. This is suitable for any undergraduate or postgraduate undertaking an introductory course in marketing.

6,750 citations

Journal ArticleDOI
TL;DR: In this article, a service quality model based on test of a sample of business executives, which describes how the quality of services is perceived by customers, is proposed, in which functional quality is seen to be a very important dimension of a perceived service.
Abstract: Proposes to develop a service quality model, based on test of a sample of business executives, which describes how the quality of services is perceived by customers. Looks at its marketing implications, in which functional quality is seen to be a very important dimension of a perceived service. Concludes that quality dimensions are interrelated and that the importance of image should be recognised.

6,179 citations


"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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Book
02 Jan 1994

6,007 citations

Journal ArticleDOI
TL;DR: The authors address the role of marketing in hypermedia computer-mediated environments by considering hypermedia CMEs to be large-scale (i.e., national or global) networked enviro...
Abstract: The authors address the role of marketing in hypermedia computer-mediated environments (CMEs). Their approach considers hypermedia CMEs to be large-scale (i.e., national or global) networked enviro...

4,695 citations


"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....

    [...]

Trending Questions (1)
What are the direct and indirect channels in retail?

The paper does not provide information about direct and indirect channels in retail. The paper discusses a dual channel supply chain model with a manufacturer selling to a retailer and consumers directly.