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

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

Research output: Contribution to journalArticlepeer-review

37 Scopus citations

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.

Original languageEnglish
Pages (from-to)812-825
Number of pages14
JournalInternational Review of Economics and Finance
Volume20
Issue number4
DOIs
StatePublished - Oct 2011

Keywords

  • Channel management
  • Consumer heterogeneity
  • Direct online channel
  • Dual channel
  • Game theory

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