A rising e-channel tide lifts all boats? the impact of manufacturer multi-channel encroachment on traditional selling and leasing

Wei Yan, Youwei Li, Ying Wu, Mark Palmer

Research output: Contribution to journalArticle

3 Citations (Scopus)
407 Downloads (Pure)

Abstract

Organizing and managing channels of distribution is an important marketing task. Due to the emergence of electronic commerce on the Internet, e-channel distribution systems have been adopted by many manufacturers. However, academic and anecdotal evidence both point to the pressures arising from this new e-channel manufacturing environment. Questions marks therefore remain on how the addition of this e-channel affects the traditional marketing strategies of leasing and selling. We set up several two-period dual-channel models in which a manufacturer sells a durable product through both a manufacturer-owned e-channel and an independent reseller (leaser) who adopts selling (leasing) to consumers. Our main results indicate that, direct selling cost aside, product durability plays an important role in shaping the strategies of all members. With either marketing strategy, the additional expansion of an e-channel territory may secure Pareto gains, in which all members benefit.
Original languageEnglish
Article number2898021
Number of pages18
JournalDiscrete Dynamics in Nature and Society
Volume2016
DOIs
Publication statusPublished - 12 Jun 2016

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