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How Potential Conflict Drives Channel Structure (Direct and Indirect) Channels

Vinhas, Alberto SA - ; Anderson, Erin - ;

This study suggests that firms should (and do) factor the potential for conflict into the design of their channels of distribution. The authors examine a firm's decision to use concurrent channels (their own and independent channels conducting transactions in the same geographic area, selling the same products) in business-to-business markets. They study how and when prominent business-to-business manufacturers, which have long and instructive experience, go to market by concurrent channels. deally, concurrent channels are better for both customers and suppliers. Customers can choose the channel best suited to their needs. Meanwhile, suppliers can increase coverage and, therefore, sales, while matching channel cost-and-capability structures to customer needs. However, concurrent channels eventually create intrabrand competition among the supplier's channels. When a supplier's direct and indirect channels meet the same customer, a major point of differentiation, namely, the brand, is absent. It becomes easier for one of the channels to receive a free ride on the presale services that the other channel provides. The authors argue that suppliers should favor unitary channels the more that the environment favors the collision of own and independent channel types, even though manufacturers have a set of available mechanisms to reduce the ex post level of conflict (e.g., demarcation schemes, quantity discounts)..Printed Journal


Ketersediaan

Call NumberLocationAvailable
PSB lt.dasar - Pascasarjana1
Penerbit: American Marketing Association
Edisi-
SubjekStatistical analysis
Distribution channels
Conflicts
studies
Business to business commerce
Manufacturers
ISBN/ISSN222437
Klasifikasi-
Deskripsi Fisik-
Info Detail Spesifik-
Other Version/RelatedTidak tersedia versi lain
Lampiran BerkasTidak Ada Data

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