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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.

Journal Article Type Article
Publication Date 2016
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
APA6 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, https://doi.org/10.1155/2016/2898021
DOI https://doi.org/10.1155/2016/2898021
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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