A “Meta-Analysis” of Multibrand, Multioutlet Channel Systems

Eunkyu Lee (), Richard Staelin (), Weon Sang Yoo () and Rex Du ()
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Eunkyu Lee: Whtiman School of Management, Syracuse University, Syracuse, New York 13244
Richard Staelin: Fuqua School of Business, Duke University, Durham, North Carolina 27708
Weon Sang Yoo: Korea University Business School, Seoul 136-701, Korea
Rex Du: C. T. Bauer College of Business, University of Houston, Houston, Texas 77204

Management Science, 2013, vol. 59, issue 9, 1950-1969

Abstract: In today's multibrand, multichannel marketplace, optimal channel design involves issues such as distribution intensity, channel exclusivity, vertical and horizontal coordination, and online–offline mixed structures. We investigate how a firm's choice in these design issues affects its profitability under varying levels of brand and outlet differentiation. Our spatial model explicitly captures heterogeneous consumer preference for brand position, store location, and outlet type, under various consumer behavior assumptions. We apply this same underlying model to 10 different channel structures, deriving associated demand functions and equilibrium solutions. We perform a meta-analysis over the entire set of results to estimate a general model that summarizes the linkages among the factors shaping optimal channel structure decisions in a multibrand, multioutlet market. This general model efficiently describes the complex interactions of channel characteristics with industry structure and consumer characteristics, providing new findings as well as greater clarity to some results in the literature. A predictive analysis applied to additional channel structures exhibits strong generalizability in qualitative findings. This paper was accepted by by Pradeep Chintagunta, marketing.

Keywords: channel coordination; channel structure; demand formulation; multichannel pricing; product line pricing (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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