A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing

Organizing and managing channels of distribution is an important marketing task. Due to the emergence of electronic commerce on the Internet, e-channel distribution systems have been adopted by many manufacturers. However, academic and anecdotal evidence both point to the pressures arising from this...

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Main Authors: Wei Yan, Youwei Li, Ying Wu, Mark Palmer
Format: Article
Language:English
Published: Wiley 2016-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2016/2898021
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author Wei Yan
Youwei Li
Ying Wu
Mark Palmer
author_facet Wei Yan
Youwei Li
Ying Wu
Mark Palmer
author_sort Wei Yan
collection DOAJ
description Organizing and managing channels of distribution is an important marketing task. Due to the emergence of electronic commerce on the Internet, e-channel distribution systems have been adopted by many manufacturers. However, academic and anecdotal evidence both point to the pressures arising from this new e-channel manufacturing environment. Question marks therefore remain on how the addition of this e-channel affects the traditional marketing strategies of leasing and selling. We set up several two-period dual-channel models in which a manufacturer sells a durable product through both a manufacturer-owned e-channel and an independent reseller (leaser) who adopts selling (leasing) to consumers. Our main results indicate that, direct selling cost aside, product durability plays an important role in shaping the strategies of all members. With either marketing strategy, the additional expansion of an e-channel territory may secure Pareto gains, in which all members benefit.
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publishDate 2016-01-01
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series Discrete Dynamics in Nature and Society
spelling doaj-art-faf6cc2f08c043599439a264a18e4f3a2025-02-03T01:31:36ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2016-01-01201610.1155/2016/28980212898021A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and LeasingWei Yan0Youwei Li1Ying Wu2Mark Palmer3School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, ChinaSchool of Management, Queen’s University Belfast, Belfast BT9 5EE, UKThe Management School, Chongqing University of Science and Technology, Chongqing 401331, ChinaSchool of Management, Queen’s University Belfast, Belfast BT9 5EE, UKOrganizing and managing channels of distribution is an important marketing task. Due to the emergence of electronic commerce on the Internet, e-channel distribution systems have been adopted by many manufacturers. However, academic and anecdotal evidence both point to the pressures arising from this new e-channel manufacturing environment. Question marks therefore remain on how the addition of this e-channel affects the traditional marketing strategies of leasing and selling. We set up several two-period dual-channel models in which a manufacturer sells a durable product through both a manufacturer-owned e-channel and an independent reseller (leaser) who adopts selling (leasing) to consumers. Our main results indicate that, direct selling cost aside, product durability plays an important role in shaping the strategies of all members. With either marketing strategy, the additional expansion of an e-channel territory may secure Pareto gains, in which all members benefit.http://dx.doi.org/10.1155/2016/2898021
spellingShingle Wei Yan
Youwei Li
Ying Wu
Mark Palmer
A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing
Discrete Dynamics in Nature and Society
title A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing
title_full A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing
title_fullStr A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing
title_full_unstemmed A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing
title_short A Rising E-Channel Tide Lifts All Boats? The Impact of Manufacturer Multichannel Encroachment on Traditional Selling and Leasing
title_sort rising e channel tide lifts all boats the impact of manufacturer multichannel encroachment on traditional selling and leasing
url http://dx.doi.org/10.1155/2016/2898021
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