A rising e-channel tide lifts all boats? The impact of manufacturer multi-channel encroachment on traditional selling and leasing

Wei Yan, Youwei Li, Ying Wu and Mark Palmer

MPRA Paper from University Library of Munich, Germany

Abstract: Organizing and managing channels of distribution is an important marketing task. Due to the emergence of electronic commerce on the Internet, e-channel distribution systems have been adopted by many manufacturers. However, academic and anecdotal evidence both point to the pressures arising from this new e-channel manufacturing environment. Questions marks therefore remain on how the addition of this e-channel affects the traditional marketing strategies of leasing and selling. We set up several two-period dual-channel models in which a manufacturer sells a durable product through both a manufacturer-owned e-channel and an independent reseller (leaser) who adopts selling (leasing) to consumers. Our main results indicate that, direct selling cost aside, product durability plays an important role in shaping the strategies of all members. With either marketing strategy, the additional expansion of an e-channel territory may secure Pareto gains, in which all members benefit.

Keywords: E-commerce; Channels of distribution; Durable goods; Durability; Selling and leasing (search for similar items in EconPapers)
JEL-codes: M30 M31 (search for similar items in EconPapers)
Date: 2016-04-01
New Economics Papers: this item is included in nep-ict and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70747

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