728
Views
12
CrossRef citations to date
0
Altmetric
Articles

Selling vertically differentiated products under one channel or two? A quality segmentation model for differentiated distribution channels

, , , &
Pages 1180-1198 | Received 20 Mar 2017, Accepted 05 Apr 2019, Published online: 06 Jun 2019

References

  • Aaker, D. A., Hardle, B. G. S., & Lodish, L. M. (1994). The logic of product-line extensions. Harvard Business Review, 72(6), 53–62.
  • Arya, A., Mittendorf, B., & Sappington, D. E. M. (2007). The bright side of supplier encroachment. Marketing Science, 26(5), 651–659. doi:10.1287/mksc.1070.0280
  • Bacchiega, E., & Bonroy, O. (2015). On the benefits of contractual inefficiency in quality-differentiated markets. Oxford Economic Papers, 67(3), 846–863. doi:10.1093/oep/gpv005
  • Barnato, K. (2012). Apple’s Smaller iPad Risks Cannibalization: Strategist. http://www.cnbc.com/id/49516918 Retrieved 15 Feburary, 2017.
  • Biswas, I., Avittathur B., & Chatterjee, A. K. (2016). Impact of structure, market share and information asymmetry on supply contracts for a single supplier multiple buyer network. European Journal of Operational Research, 253(3), 593–601.
  • Cachon, G. P., & Lariviere, M. A. (2005). Supply chain coordination with revenue-sharing contracts: Strengths and limitations. Management Science, 51(1), 30–44. doi:10.1287/mnsc.1040.0215
  • Choi, S. C., & Coughlan, A. T. (2006). Private label positioning: Quality versus feature differentiation from the national brand. Journal of Retailing, 82(2), 79–93. doi:10.1016/j.jretai.2006.02.005
  • Choudhary, V., Ghose, A., Mukhopadhyay, T., & Rajan, U. (2005). Personalized pricing and quality differentiation. Management Science, 51(7), 1120–1130. doi:10.1287/mnsc.1050.0383
  • Chung, H., & Lee, E. (2014). Does channel decentralization lead to low quality product lines?. European Journal of Marketing, 48(9/10), 1870–1891. doi:10.1108/EJM-06-2013-0335
  • Davcik, N., & Sharma, S. P. (2015). Impact of product differentiation, marketing investments and brand equity on pricing strategies A brand level investigation. European Journal of Marketing, 49(5/6), 760–781.
  • Desai, P., Kekre, S., Radhakrishnan, S., & Srinivasan, K. (2001). Product differentiation and commonality in design: Balancing revenue and cost drivers. Management Science, 47(1), 37–51. doi:10.1287/mnsc.47.1.37.10672
  • Desai, P. S. (2001). Quality segmentation in spatial markets: When does cannibalization affect product line design?. Marketing Science, 20(3), 265–283. doi:10.1287/mksc.20.3.265.9767
  • Desai, P. S., & Purohit, D. (1999). Competition in durable goods markets: The strategic consequences of leasing and selling. Marketing Science, 18(1), 42–58. doi:10.1287/mksc.18.1.42
  • Geylani, T., Dukes, A. J., & Srinivasan, K. (2007). Strategic manufacturer response to a dominant retailer. Marketing Science, 26(2), 164–178. doi:10.1287/mksc.1060.0239
  • Gilbert, S. M., & Cvsa, V. (2003). Strategic commitment to price to stimulate downstream innovation in a supply chain. European Journal of Operational Research, 150(3), 617–639. doi:10.1016/S0377-2217(02)00590-8
  • Glock, C. H., & Kim, T. (2015). The effect of forward integration on a single-vendor-multi-retailer supply chain under retailer competition. International Journal of Production Economics, 164, 179–192. doi:10.1016/j.ijpe.2015.03.009
  • Ha, A., Long, X. Y., & Nasiry, J. (2016). Quality in supply chain encroachment. M&Som-Manufacturing & Service Operations Management, 18(2), 280–298.
  • Handley, S., & Gray, J. (2015). Managing quality in a heterogeneous contract manufacturing environment. Decision Sciences, 46(6), 1011–1048.
  • Hotelling, H. (1929). Stability in competition. The Economic Journal, 39(153), 41–57. doi:10.2307/2224214
  • Jeuland, A. P., & Shugan, S. M. (2008). Managing channel profits. Marketing Science, 27(1), 52–69. doi:10.1287/mksc.1070.0332
  • Kopalle, P., Biswas, D., Chintagunta, P. K., Fan, J., Pauwels, K., Ratchford. B. T., & Sills, J. A. (2009). Retailer pricing and competitive effects. Journal of Retailing 85(1), 56–70.
  • Lal, R. (1990). Improving channel coordination through franchising. Marketing Science, 9(4), 299–318. doi:10.1287/mksc.9.4.299
  • Lee, E., Staelin, R., Yoo, W. S., & Du, R. (2013). A “meta-analysis” of multibrand, multioutlet channel systems. Management Science, 59(9), 1950–1969. doi:10.1287/mnsc.1120.1692
  • Li, Z., Gilbert, S. M., & Lai, G. (2014). Supplier encroachment under asymmetric information. Management Science, 60(2), 449–462. doi:10.1287/mnsc.2013.1780
  • Liu, B., Cai, G., & Tsay, A. A. (2013). Advertising in asymmetric competing supply chains. Production and Operations Management, 23(11), 1845–1858. doi:10.1111/poms.12090
  • Ma, L., Zhang, R., Guo, S., & Liu, B. (2012). Pricing decisions and strategies selection of dominant manufacturer in dual-channel supply chain. Economic Modelling, 29(6), 2558–2565. doi:10.1016/j.econmod.2012.06.012
  • McGuire, T. W., & Staelin, R. (1983). An industry equilibrium analysis of downstream vertical integration.. Marketing Science, 2(2), 161–191. doi:10.1287/mksc.2.2.161
  • Meulenbroeks, C. (1998). Creating a competitive advantage through quality. Creativity & Innovation Management, 7(3), 148. doi:10.1111/1467-8691.00103
  • Mussa, M., & Rosen, S. (1978). Monopoly and product quality. Journal of Economic Theory, 18(2), 301–317. doi:10.1016/0022-0531(78)90085-6
  • Nijssen, E. J. (1999). Success factors of line extensions of fast-moving consumer goods. European Journal of Marketing, 33(5/6), 450–474. doi:10.1108/03090569910262044
  • Palsule-Desai, O. D., Tirupati, D., & Shah, J. (2015). Product line design and positioning using add-on services. International Journal of Production Economics, 163, 16–33. doi:10.1016/j.ijpe.2015.02.007
  • Parlakturk, A. K. (2012). The value of product variety when selling to strategic consumers. Manufacturing & Service Operations Management, 14(3), 371–385.
  • Pelegrin, B., Fernandez, P., & Garcia Perez, M. D. (2016). Profit maximization and reduction of the cannibalization effect in chain expansion. Annals of Operations Research, 246(1–2), 57–75.
  • Qi, L., Chu, L. Y., & Chen, R. R. (2016). Quality provision with heterogeneous consumer reservation utilities. Production and Operations Management, 25(5), 883–901. doi:10.1111/poms.12512
  • Raju, J., & Zhang, Z. J. (2005). Channel coordination in the presence of a dominant retailer. Marketing Science, 24(2), 254–262. doi:10.1287/mksc.1040.0081
  • Rhee, B. D. (1996). Consumer heterogeneity and strategic quality decisions. Management Science, 42(2), 157–172. doi:10.1287/mnsc.42.2.157
  • Robertson, D. (1998). Planning for product platforms. Sloan Management Review, 39(4), 19–31.
  • Savaskan, R. C., Bhattacharya, S., & van Wassenhove, L. N. (2004). Closed-loop supply chain models with product remanufacturing. Management Science, 50(2), 239–252. doi:10.1287/mnsc.1030.0186
  • Seifbarghy, M., Nouhi, K., & Mahmoudi, A. (2015). Contract design in a supply chain considering price and quality dependent demand with customer segmentation. International Journal of Production Economics, 167, 108–118. doi:10.1016/j.ijpe.2015.05.004
  • Seward, Z. M. (2013). Yes, the iPad mini is cannibalizing sales of the larger ipad. https://qz.com/47265/apple-ipad-mini-is-cannibalizing-sales-of-the-larger-ipad/ Retrieved 15 Feb., 2017.
  • Shi, H., Liu, Y., & Petruzzi, N. C. (2013). Consumer heterogeneity, product quality, and distribution channels. Management Science, 59(5), 1162–1176. doi:10.1287/mnsc.1120.1604
  • Spengler, J. J. (1950). Vertical integration and antitrust policy. Journal of Political Economy, 58(4), 347. doi:10.1086/256964
  • Tyagi, R. K. (2004). Technological advances, transaction costs, and consumer welfare. Marketing Science, 23(3), 335–344. doi:10.1287/mksc.1030.0038
  • Villas-Boas, J. M. (1998). Product line design for a distribution channel. Marketing Science, 17(2), 156–169. doi:10.1287/mksc.17.2.156
  • Xiao, T., Choi, T.-M., & Cheng, T. C. E. (2014). Product variety and channel structure strategy for a retailer-Stackelberg supply chain. European Journal of Operational Research, 233(1), 114–124. doi:10.1016/j.ejor.2013.08.038
  • Yan, W., Xiong, Y., Chu, J., Li, G., & Xiong, Z. (2018). Clicks versus Bricks: The role of durability in marketing channel strategy of durable goods manufacturers. European Journal of Operational Research, 265(3), 909–918. doi:10.1016/j.ejor.2017.08.039
  • Yan, W., Xiong, Y., Xiong, Z., & Guo, N. (2015). Bricks vs. clicks: Which is better for marketing remanufactured products?. European Journal of Operational Research, 242(2), 434–444. doi:10.1016/j.ejor.2014.10.023
  • Yang, S., Shi, V., & Jackson, J. E. (2015). Channel structures when selling asymmetric competing products. International Journal of Production Economics, 170, 641–651. Manufacturers’ Part B: doi:10.1016/j.ijpe.2015.04.003
  • Zhang, X., & Cao, Y. (2014). Selling Vertically Differentiated Products under One Roof or Two? A Signaling Model of a Retailer’s Roof Policies. Journal of Retailing, 90(4), 538–551. doi:10.1016/j.jretai.2014.09.001
  • Zhao, X., Atkins, D., & Liu, Y. (2009). Effects of distribution channel structure in markets with vertically differentiated products. Quantitative Marketing and Economics, 7(4), 377–397. doi:10.1007/s11129-009-9075-y

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.