 Do channel members value supportive retail services? Why?Zhi Pei and Ruiliang Yan Journal of Business Research, 2015, vol. 68, issue 6, 1350-1358 Abstract: When a manufacturer opens an online channel to compete with its retailer, how can the channel conflict be resolved and the relationship between channel members be improved? Our research proposes supportive retail services as an effective incentive to coordinate the dual-channel distribution and govern the relationship between channel members. We use a profit-maximization model to show that supportive retail services can be utilized to alleviate dual-channel competition and achieve a Pareto result for all channel members. As product compatibility with the web changes, the manufacturer's financial support for retail services also changes. When the product is more compatible with the web, the manufacturer would like to offer more financial support as an effective incentive to the retailer to improve its retail services. However, the value of supportive retail services always increases for the manufacturer but first increases and then decreases for the retailer as product compatibility with the web increases. Keywords: Marketing strategy; Retailing; Retail services; Channel coordination; Modeling (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:6:p:1350-1358 DOI: 10.1016/j.jbusres.2014.12.005 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.