Forms of Competition and Outcomes in Dual Distribution Channels: The Distributor’s Perspective

Alberto Sa Vinhas () and Jan B. Heide ()
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Alberto Sa Vinhas: Carson College of Business, Washington State University, Vancouver, Washington 98686
Jan B. Heide: Wisconsin School of Business, University of Wisconsin–Madison, Madison, Wisconsin 53706

Marketing Science, 2015, vol. 34, issue 1, 160-175

Abstract: The focus of this paper is dual distribution channels in business-to-business markets. We take the perspective of the distributor, and examine how different forms of competition with a manufacturer-owned channel impact distributor opportunism. Next, we consider how the same forms of competition impact the distributor’s end customers. Based on a multi-industry field study of industrial distributors, we highlight the complex processes that characterize dual distribution systems. We show that while competition with a manufacturer-owned channel increases distributor opportunism, it also has the potential to benefit the distributor’s end customers. In addition, although actions taken by a manufacturer to create vertical separation between channels limit competition, such actions also reduce end customer satisfaction.

Keywords: dual distribution; concurrent channels; forms of competition; distributors; channel outcomes; opportunism (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:34:y:2015:i:1:p:160-175

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