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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

Authors

Wei Yan

Ying Wu

Mark Palmer



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 29, 2024
Journal Discrete Dynamics in Nature and Society
Print ISSN 1026-0226
Electronic ISSN 1607-887X
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/

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Copyright Statement
© 2016 Wei Yan et al. This is an open access article distributed under the Creative Commons Attribution License, whichpermits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.





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