Differentiated‐product distribution in a dual‐channel supply chain

Xujin Pu, Shuxing Sun and Guanghua Han

Managerial and Decision Economics, 2019, vol. 40, issue 4, 363-373

Abstract: This study presents a theoretical framework to explore the mechanism of firms' preference for different distribution strategies. The results indicate that the manufacturer, retailer, and e‐tailer would prefer the distribution strategy of selling low‐end and high‐end products through offline and online channels, respectively, when consumers are minimally sensitive to the product‐quality differentiation. By contrast, supply‐chain firms would prefer the distribution strategy of selling high‐end and low‐end products through offline and online channels when consumers are significantly sensitive to the product‐quality differentiation. Firms demonstrate different preferences for distribution strategy when consumers are moderately sensitive to product‐quality differentiation.

Date: 2019
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https://doi.org/10.1002/mde.3007

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:40:y:2019:i:4:p:363-373

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