Measuring modularity on manufacturers' distribution channel strategies: direct selling, reselling or agency selling

Qinyu Song, Meng Yang and Yaodong Ni

European Journal of Industrial Engineering, 2025, vol. 19, issue 4, 539-571

Abstract: In recent years, consumers not only pursue cost-effective products but also begin to attach importance to individual customisation. This paper investigates the effects of the modularity level on a manufacturer's three channel strategies. We find that the modularity level under reselling and agency selling is lower than that under direct selling. Considering modularity, the retail price under agency selling is lower than that under direct selling. Therefore, when the consumer pays attention to the modular design, if the commission fee is high (low), the manufacturer will adopt the direct selling (agency selling) model. However, when the consumer's customisation concern is weak, the manufacturer prefers the reselling format. In addition, referring to dual distribution channels, the manufacturer may authorise the modular design to the retailer when the modular-sensitive the parameter is high. [Submitted: 29 August 2023; Accepted: 5 March 2024]

Keywords: distribution channel; modularity; agency selling; reselling; game theory. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=146505 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:eujine:v:19:y:2025:i:4:p:539-571

Access Statistics for this article

More articles in European Journal of Industrial Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().