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Emerging dual channel system and manufacturer's direct retail channel strategy

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  • Chun, Se-Hak
  • Rhee, Byong-Duk
  • Park, Seong Y.
  • Kim, Jae-Cheol

Abstract

The Internet has led many manufacturers to add direct online retail channels to their existing offline retail networks. Using both online and offline channels, manufacturers increase their market coverage and profits by customizing their products and services for the differing needs of customer segments using separate channels. Much recent research on channel management tends to focus on pricing strategies rather than analyzing channel strategies. This paper analyzes optimal channel strategies of manufacturers when they consider online stores as their new direct online channels, and it discusses some strategic implications of these channel strategies from the perspective of consumer heterogeneity and retail services.

Suggested Citation

  • Chun, Se-Hak & Rhee, Byong-Duk & Park, Seong Y. & Kim, Jae-Cheol, 2011. "Emerging dual channel system and manufacturer's direct retail channel strategy," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 812-825, October.
    • Handle: RePEc:eee:reveco:v:20:y:2011:i:4:p:812-825
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    References listed on IDEAS

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    Cited by:

    1. Gan, Shu-San & Pujawan, I. Nyoman & Suparno, & Widodo, Basuki, 2017. "Pricing decision for new and remanufactured product in a closed-loop supply chain with separate sales-channel," International Journal of Production Economics, Elsevier, vol. 190(C), pages 120-132.
    2. Kuiran Shi & Hujie Ma, 2016. "Evolution Of Trust In A Dual-Channel Supply Chain Considering Reciprocal Altruistic Behavior," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 19(06n07), pages 1-30, September.
    3. Mandal, Prasenjit & Jain, Tarun, 2021. "Partial outsourcing from a rival: Quality decision under product differentiation and information asymmetry," European Journal of Operational Research, Elsevier, vol. 292(3), pages 886-908.
    4. Pun, Hubert & Chen, Jing & Li, Wei, 2020. "Channel strategy for manufacturers in the presence of service freeriders," European Journal of Operational Research, Elsevier, vol. 287(2), pages 460-479.
    5. Yan, Wei & Xiong, Yu & Chu, Junhong & Li, Gendao & Xiong, Zhongkai, 2018. "Clicks versus Bricks: The role of durability in marketing channel strategy of durable goods manufacturers," European Journal of Operational Research, Elsevier, vol. 265(3), pages 909-918.
    6. T. M. Rofin & Biswajit Mahanty, 2018. "Optimal dual-channel supply chain configuration for product categories with different customer preference of online channel," Electronic Commerce Research, Springer, vol. 18(3), pages 507-536, September.
    7. Santanu Kumar Ghosh & Mijanur Rahaman Seikh & Milan Chakrabortty, 2024. "Coordination and strategic decision making in a stochastic dual-channel supply chain based on customers’ channel preferences," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(6), pages 2248-2270, June.
    8. Kim, Jae-Cheol & Kim, Min-Young & Chun, Se-Hak, 2014. "Property tax and its effects on strategic behavior of leasing and selling for a durable-goods monopolist," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 132-144.
    9. Xiong, Yu & Yan, Wei & Fernandes, Kiran & Xiong, Zhong-Kai & Guo, Nian, 2012. "“Bricks vs. Clicks”: The impact of manufacturer encroachment with a dealer leasing and selling of durable goods," European Journal of Operational Research, Elsevier, vol. 217(1), pages 75-83.
    10. Se-Hak Chun & Seong-Yong Park, 2019. "Hybrid marketing channel strategies of a manufacturer in a supply chain: game theoretical and numerical approaches," Information Technology and Management, Springer, vol. 20(4), pages 187-202, December.
    11. Xiaona Zheng & Luping Sun & Andy A. Tsay, 2018. "Distribution Channel Strategies and Retailer Collusion in a Supply Chain with Multiple Retailers," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(03), pages 1-27, June.
    12. Zhang, Shichen & Zhang, Jianxiong & Zhu, Guowei, 2019. "Retail service investing: An anti-encroachment strategy in a retailer-led supply chain," Omega, Elsevier, vol. 84(C), pages 212-231.

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