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

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dc.contributor.authorKim, Jae-Cheolko
dc.contributor.authorChun, Se-Hakko
dc.date.accessioned2018-06-16T07:37:37Z-
dc.date.available2018-06-16T07:37:37Z-
dc.date.created2018-06-11-
dc.date.created2018-06-11-
dc.date.issued2018-05-
dc.identifier.citationDECISION SUPPORT SYSTEMS, v.109, pp.5 - 14-
dc.identifier.issn0167-9236-
dc.identifier.urihttp://hdl.handle.net/10203/242547-
dc.description.abstractThis 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. This paper shows the manufacturer's channel strategies: (i) if customers are very heterogeneous with regard to their receptiveness to online shopping, the manufacturer may use a multi-channel strategy. (ii) if the customer sector becomes homogeneous, the manufacturer will become more willing to adopt an omni-channel strategy. (iii) if customers are neither similar nor very different, the manufacturer uses a brick-and-mortar strategy. This paper also shows results on the issue of channel conflict in terms of market power: (i) the retailer may voluntarily limit its market power and thus, self-created competition in the retail market alleviates the problem of double-markup to some extent. (ii) the manufacturer can use an online channel when inter-competition effect becomes severe. (C) 2018 Elsevier B.V. All rights reserved.-
dc.languageEnglish-
dc.publisherELSEVIER SCIENCE BV-
dc.subjectSUPPLY-CHAIN-
dc.subjectPRICING STRATEGIES-
dc.subjectONLINE CHANNEL-
dc.subjectSPECIAL-ISSUE-
dc.subjectCOORDINATION-
dc.subjectCOMMERCE-
dc.subjectASSORTMENT-
dc.subjectCONFLICT-
dc.subjectPROFITS-
dc.subjectBRICKS-
dc.titleCannibalization and competition effects on a manufacturer's retail channel strategies: Implications on an omni-channel business model-
dc.typeArticle-
dc.identifier.wosid000433016600002-
dc.identifier.scopusid2-s2.0-85044510773-
dc.type.rimsART-
dc.citation.volume109-
dc.citation.beginningpage5-
dc.citation.endingpage14-
dc.citation.publicationnameDECISION SUPPORT SYSTEMS-
dc.identifier.doi10.1016/j.dss.2018.01.007-
dc.contributor.localauthorKim, Jae-Cheol-
dc.contributor.nonIdAuthorChun, Se-Hak-
dc.description.isOpenAccessN-
dc.type.journalArticleArticle-
dc.subject.keywordAuthorChannel conflict-
dc.subject.keywordAuthorChannel management strategies-
dc.subject.keywordAuthorIntra-cannibalization-
dc.subject.keywordAuthorInter-competition-
dc.subject.keywordAuthorOmni-channel model-
dc.subject.keywordAuthorPricing strategies-
dc.subject.keywordAuthorSupply chain-
dc.subject.keywordPlusSUPPLY-CHAIN-
dc.subject.keywordPlusPRICING STRATEGIES-
dc.subject.keywordPlusONLINE CHANNEL-
dc.subject.keywordPlusSPECIAL-ISSUE-
dc.subject.keywordPlusCOORDINATION-
dc.subject.keywordPlusCOMMERCE-
dc.subject.keywordPlusASSORTMENT-
dc.subject.keywordPlusCONFLICT-
dc.subject.keywordPlusPROFITS-
dc.subject.keywordPlusBRICKS-
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