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Reply To: Managing Channel Profits: Comment

Author

Listed:
  • Abel P. Jeuland

    (University of Chicago)

  • Steven M. Shugan

    (University of Chicago)

Abstract

We welcome Moorthy's Comment (Moorthy, K. S. 1987. Managing channel profits: Comment. (Fall) 375–379.). It provides an opportunity to clarify several issues raised in our 1983 paper. That paper was motivated by one concern—channel coordination. We believed that channel members benefit from coordination and that many institutional arrangements, such as quantity discounts, are actually coordinating mechanisms. We developed a simple model to demonstrate our belief. For historical accuracy, McGuire and Staelin (cited by Moorthy) had already independently developed a useful model of duopolistic channel competition. Being unaware of their working paper, our model not surprisingly differed from theirs. Both papers provide important but different insights into channel management.

Suggested Citation

  • Abel P. Jeuland & Steven M. Shugan, 1988. "Reply To: Managing Channel Profits: Comment," Marketing Science, INFORMS, vol. 7(1), pages 103-106.
    • Handle: RePEc:inm:ormksc:v:7:y:1988:i:1:p:103-106
    DOI: 10.1287/mksc.7.1.103
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    Citations

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    Cited by:

    1. Michaela Draganska & Daniel Klapper & Sofia B. Villas-Boas, 2010. "A Larger Slice or a Larger Pie? An Empirical Investigation of Bargaining Power in the Distribution Channel," Marketing Science, INFORMS, vol. 29(1), pages 57-74, 01-02.
    2. Xiao, Tiaojun & Qi, Xiangtong & Yu, Gang, 2007. "Coordination of supply chain after demand disruptions when retailers compete," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 162-179, September.
    3. Sreya Kolay & Greg Shaffer, 2013. "Contract Design with a Dominant Retailer and a Competitive Fringe," Management Science, INFORMS, vol. 59(9), pages 2111-2116, September.
    4. Sarat Kumar Jena & Deepti Jog, 2017. "Price competition in a tourism supply chain," Tourism Economics, , vol. 23(6), pages 1235-1254, September.
    5. Ingene, Charles A. & Taboubi, Sihem & Zaccour, Georges, 2012. "Game-Theoretic Coordination Mechanisms in Distribution Channels: Integration and Extensions for Models Without Competition," Journal of Retailing, Elsevier, vol. 88(4), pages 476-496.
    6. Abel P. Jeuland & Steven M. Shugan, 2008. "Commentary—Managing Channel Profits," Marketing Science, INFORMS, vol. 27(1), pages 49-51, 01-02.
    7. Jørgensen, Steffen & Zaccour, Georges, 2014. "A survey of game-theoretic models of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 237(1), pages 1-14.
    8. Ravi Anupindi & Yehuda Bassok, 1999. "Centralization of Stocks: Retailers vs. Manufacturer," Management Science, INFORMS, vol. 45(2), pages 178-191, February.
    9. Kunter, Marcus, 2012. "Coordination via cost and revenue sharing in manufacturer–retailer channels," European Journal of Operational Research, Elsevier, vol. 216(2), pages 477-486.
    10. Ramanathan Subramaniam & Esther Gal-Or, 2009. "—Quantity Discounts in Differentiated Consumer Product Markets," Marketing Science, INFORMS, vol. 28(1), pages 180-192, 01-02.
    11. Subhajyoti Bandyopadhyay & Anand A. Paul, 2010. "Equilibrium Returns Policies in the Presence of Supplier Competition," Marketing Science, INFORMS, vol. 29(5), pages 846-857, 09-10.
    12. Minakshi Trivedi, 1998. "Distribution Channels: An Extension of Exclusive Retailership," Management Science, INFORMS, vol. 44(7), pages 896-909, July.
    13. Ramarao Desiraju, 2004. "Costs and Benefits of Inducing Intrabrand Competition: The Role of Limited Liability," Marketing Science, INFORMS, vol. 23(3), pages 429-450, March.
    14. Anil Arya & Brian Mittendorf, 2006. "Benefits of Channel Discord in the Sale of Durable Goods," Marketing Science, INFORMS, vol. 25(1), pages 91-96, 01-02.
    15. Xie, Jinxing & Wei, Jerry C., 2009. "Coordinating advertising and pricing in a manufacturer-retailer channel," European Journal of Operational Research, Elsevier, vol. 197(2), pages 785-791, September.
    16. Karray, Salma & Zaccour, Georges, 2006. "Could co-op advertising be a manufacturer's counterstrategy to store brands?," Journal of Business Research, Elsevier, vol. 59(9), pages 1008-1015, September.

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