Integrating Distribution Strategy and Tactics: A Model and an Application

V. Kasturi Rangan and Ramchandran Jaikumar
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V. Kasturi Rangan: Graduate School of Business Administration, Harvard University, Soldiers Field Road, Boston, Massachusetts 02163
Ramchandran Jaikumar: Graduate School of Business Administration, Harvard University, Soldiers Field Road, Boston, Massachusetts 02163

Management Science, 1991, vol. 37, issue 11, 1377-1389

Abstract: Designing distribution systems requires two decisions, one strategic (i.e., the number of levels between the producer and the customer) and the other tactical (i.e., channel management policies such as trade discounts and rebates). While the modeling literature focuses on one or the other, evidence from the field indicates that the two decisions are in fact interactive. In this paper, we develop and then apply an integrated model that solves the strategic issue of channel levels and the tactical issue of price rebates simultaneously.

Keywords: marketing: channels of distribution; retailing and wholesaling; pricing (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:37:y:1991:i:11:p:1377-1389

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