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How potential conflict drives channel structure: concurrent (direct and indirect) channels
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
Call Number | Location | Available |
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PSB lt.dasar - Pascasarjana | 1 |
Penerbit | American Marketing Association., |
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Edisi | - |
Subjek | Statistical analysis Distribution channels Conflicts studies Business to business commerce Manufacturers |
ISBN/ISSN | 222437 |
Klasifikasi | - |
Deskripsi Fisik | - |
Info Detail Spesifik | - |
Other Version/Related | Tidak tersedia versi lain |
Lampiran Berkas | Tidak Ada Data |