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

Yan, Wei; Li, Youwei; Wu, Ying; Palmer, Mark

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. Question 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.

Citation

Yan, W., Li, Y., Wu, Y., & Palmer, M. (2016). A rising e-channel tide lifts all boats? the impact of manufacturer multichannel encroachment on traditional selling and leasing. Discrete Dynamics in Nature and Society, 2016, Article 2898021. https://doi.org/10.1155/2016/2898021

• Journal Article Type: Article
• Acceptance Date: Apr 17, 2016
• Online Publication Date: Jun 12, 2016
• Publication Date: 2016
• Deposit Date: Mar 19, 2019
• Publicly Available Date: Mar 22, 2019
• Journal: Discrete Dynamics in Nature and Society
• Print ISSN: 1026-0226
• Publisher: Hindawi
• Peer Reviewed: Peer Reviewed
• Volume: 2016
• Article Number: 2898021
• DOI: https://doi.org/10.1155/2016/2898021
• Public URL: https://hull-repository.worktribe.com/output/1113384
• Publisher URL: https://www.hindawi.com/journals/ddns/2016/2898021/
• Contract Date: Mar 19, 2019