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Assessing the economic value of distribution channels: an application to the personal computer industry
Firms that distribute multiple products through multiple channels must often decide which channel to enter, which channel to exit, and which product to sell in which channel. A firm's channel actions affect not only its own profits and consumer welfare but also its relationships with channel intermediaries and with other firms in the market. The issue of managing multiple channels along with multiple product lines is a particularly noteworthy aspect of the personal computer (PC) markets because all PC makers offer multiple product lines through multiple distribution channels, and most customers use multiple channels for shopping and purchasing. In this article, the authors show how the framework of structural modeling and policy simulations can be used to evaluate such policy changes and provide an empirical application of the framework to the PC industry. They estimate a structural model that is derived from consumers' utility maximization behavior and firms' profit maximization behavior, and the pricing model accounts for both horizontal and vertical market interactions. Among their major findings are the following: 1. Channels with high (low) historical sales and profits do not necessarily have high (low) economic value to firms. 2. Dell's decision to exit the retail channel and Compaq's to go direct were economically justified, but Compaq needed to handle its relationships with channel partners carefully. 3. Gateway would be better off switching its retail sales to the Internet channel, a course of action the firm has subsequently take.Printed Journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | American Marketing Association., |
|---|---|
| Edisi | - |
| Subjek | Decision making Distribution channels Personal computers Market strategy studies |
| ISBN/ISSN | 222437 |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |