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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Eunkyu Lee & Richard Staelin & Weon Sang Yoo & Rex Du, 2013. "A “Meta-Analysis” of Multibrand, Multioutlet Channel Systems," Management Science, INFORMS, vol. 59(9), pages 1950-1969, September.
    • Handle: RePEc:inm:ormnsc:v:59:y:2013:i:9:p:1950-1969
    DOI: 10.1287/mnsc.1120.1692
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    References listed on IDEAS

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    Cited by:

    1. Krafft, Manfred & Goetz, Oliver & Mantrala, Murali & Sotgiu, Francesca & Tillmanns, Sebastian, 2015. "The Evolution of Marketing Channel Research Domains and Methodologies: An Integrative Review and Future Directions," Journal of Retailing, Elsevier, vol. 91(4), pages 569-585.
    2. Chung, Hwan & Lee, Eunkyu, 2017. "Store Brand Quality and Retailer’s Product Line Design," Journal of Retailing, Elsevier, vol. 93(4), pages 527-540.
    3. Xiabing Zheng & Xiaolong Guo, 2016. "E-retailing of restaurant services: pricing strategies in a competing online environment," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(11), pages 1408-1418, November.
    4. Hu, Sen & Hu, Bin & Cao, Ya, 2018. "The wider, the better? The interaction between the IoT diffusion and online retailers’ decisions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 509(C), pages 196-209.

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