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Differentiated‐product distribution in a dual‐channel supply chain

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  • Xujin Pu
  • Shuxing Sun
  • Guanghua Han

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.

Suggested Citation

  • Xujin Pu & Shuxing Sun & Guanghua Han, 2019. "Differentiated‐product distribution in a dual‐channel supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(4), pages 363-373, June.
  • Handle: RePEc:wly:mgtdec:v:40:y:2019:i:4:p:363-373
    DOI: 10.1002/mde.3007
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    Cited by:

    1. Matsui, Kenji, 2020. "Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 287(1), pages 225-236.
    2. Hou, Rui & Zhao, You & Zhu, Mengqiang & Lin, Xiaogang, 2021. "Price and quality decisions in a vertically-differentiated supply chain with an “Online-to-Store†channel," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).

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