Cannibalization and competition effects on a manufacturer's retail channel strategies: Implications on an omni-channel business model

作者:

Highlights:

• If customers are very heterogeneous with regard to their receptiveness to online shopping, the manufacturer may use a multi-channel strategy.

• If the customer sector becomes homogeneous, the manufacturer will become more willing to adopt an omni-channel strategy.

• If customers are neither similar nor very different, the manufacturer uses a brick-and-mortar strategy

• The retailer may voluntarily limit its market power and self-created competition alleviates the problem of double-markup to some extent

• The manufacturer can use an online channel when inter-competition effect becomes severe

摘要

This paper analyzes two effects caused by “channel conflict”, which occurs when firms newly add a direct online channel via the Internet or a mobile device. The first is an “intra-cannibalization effect” between the firms' existing retail channel and the new online channel, and the second is the “inter-competition effect” between manufacturers and retailers in the supply chain. In particular, this paper investigates a manufacturer's retailing channel strategy considering the relative market power between a manufacturer and a retailer in the supply chain, which has been rarely considered in previous studies.

论文关键词:Channel conflict,Channel management strategies,Intra-cannibalization,Inter-competition,Omni-channel model,Pricing strategies,Supply chain

论文评审过程:Received 30 January 2017, Revised 14 January 2018, Accepted 26 January 2018, Available online 31 January 2018, Version of Record 18 April 2018.

论文官网地址:https://doi.org/10.1016/j.dss.2018.01.007