Emerging dual channel system and manufacturer's direct retail channel strategy |
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| Authors: | Se-Hak Chun Byong-Duk Rhee Seong Y Park Jae-Cheol Kim |
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| Institution: | 1. Department of Business Administration, Seoul National University of Science and Technology, Kongneung-gil 138 Nowon-gu, Seoul 139-743, Republic of Korea;2. Graduate School of Management, Ajou University, 5 Woncheon-dong, Yeongtong-gu, Suwon 443-749, Republic of Korea;3. Graduate School of Management, Korea Advanced Institute of Science and Technology, 87 Hoegiro, Dongdaemun-gu, Seoul, 130-722, Republic of Korea;1. Business School, Hunan University, Changsha 410082, China;2. College of Economics and Trade, Hunan University, Changsha 410079, China;1. School of Economics and Management, Southeast University, Sipailou 2, Nanjing, 210096, China;2. UQ Business School, The University of Queensland, Brisbane, QLD, 4072, Australia;1. School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China;2. Center for Energy & Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, China;3. Sustainable Development Research Institute for Economy and Society of Beijing, Beijing 100081, China;4. Naveen Jindal School of Management, University of Texas at Dallas, Dallas, TX 75080, USA;5. School of Economics and Management, Wuhan University, Wuhan, Hubei 430072, China;1. School of Industrial Engineering, College of Engineering, University of Tehran, Iran;2. Centre for Sustainable Supply Chain Engineering, Department of Technology and Innovation, University of Southern Denmark, Odense, M 5230, Denmark |
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| 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. |
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