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Differentiated‐product distribution in a dual‐channel supply chain
Author(s) -
Pu Xujin,
Sun Shuxing,
Han Guanghua
Publication year - 2019
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3007
Subject(s) - product differentiation , dual (grammatical number) , product (mathematics) , business , supply chain , preference , quality (philosophy) , distribution (mathematics) , channel (broadcasting) , industrial organization , microeconomics , marketing , economics , computer science , telecommunications , mathematics , art , mathematical analysis , geometry , literature , philosophy , epistemology , cournot competition
This study presents a theoretical framework to explore the mechanism of firms' preference for different distribution strategies. The results indicate that the manufacturer, retailer, and e‐tailer would prefer the distribution strategy of selling low‐end and high‐end products through offline and online channels, respectively, when consumers are minimally sensitive to the product‐quality differentiation. By contrast, supply‐chain firms would prefer the distribution strategy of selling high‐end and low‐end products through offline and online channels when consumers are significantly sensitive to the product‐quality differentiation. Firms demonstrate different preferences for distribution strategy when consumers are moderately sensitive to product‐quality differentiation.