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Article
Publication date: 1 February 1997

Stephen F. Pirog and Richard Lancioni

The Japanese distribution system is often accused of being inefficient and responsible for high consumer prices. Discusses some critical dimensions that make distribution appear…

2299

Abstract

The Japanese distribution system is often accused of being inefficient and responsible for high consumer prices. Discusses some critical dimensions that make distribution appear to be less efficient in Japan than the US. An empirical study compares distribution costs at all levels of the channel in the two countries, including the costs of distributing industrial products, which are ultimately borne by the consumer. Provides evidence that cost structures are similar for the two countries. Discusses implications for distribution planners.

Details

International Journal of Physical Distribution & Logistics Management, vol. 27 no. 1
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 16 April 2024

Huifeng Bai, Jin Shi, Peng Song, Julie McColl, Christopher Moore and Ian Fillis

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Abstract

Purpose

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Design/methodology/approach

Through case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.

Findings

Strong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.

Research limitations/implications

The results are potentially challenged by relatively small sample size.

Practical implications

Practitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.

Originality/value

This paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 19 September 2008

Filipe Coelho and Chris Easingwood

The purpose of this paper is to aim to understand the factors influencing the magnitude of change in distribution channels. Distribution channels are slow to change due to a…

3267

Abstract

Purpose

The purpose of this paper is to aim to understand the factors influencing the magnitude of change in distribution channels. Distribution channels are slow to change due to a number of factors. Yet, the distribution mix is a vital part of a company's competitive position and companies must, therefore, constantly examine their mix of channels to most closely approximate the changing needs of its customers. It therefore is important to look at the factors influencing change in distribution.

Design/methodology/approach

A model of channel change is developed and tested with data from financial services organizations in the UK. In addition to quantitative data, the researchers also collected qualitative feedback.

Findings

The degree of channel change is related to: volatility in customers' needs; the sophistication of the target customer; product sophistication; environmental conflict; volatility in competitors' strategies; scope economies; and company size.

Research limitations/implications

The sample size is relatively modest, although this has not prevented the emergence of significant results.

Practical implications

The results of the study are important for both academics and practitioners. It helps alert practitioners to the factors that affect channel change. For academics, it demonstrates that this complex subject can be researched. It also raises some research issues that might be taken on board in future studies.

Originality/value

This article is one of the first to test a set of hypotheses regarding the drivers and inhibitors of change in distribution systems at the micro level.

Details

European Journal of Marketing, vol. 42 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 7 March 2022

María Rubio-Misas

This paper investigates why bancassurance coexists with alternative insurance distribution channels in the long run, considering the bank channel is known to involve lower costs…

4717

Abstract

Purpose

This paper investigates why bancassurance coexists with alternative insurance distribution channels in the long run, considering the bank channel is known to involve lower costs than traditional distribution systems. It tests the product-quality hypothesis that maintains that the higher costs of some distribution systems represent expenses associated with producing higher product quality, greater service intensity and/or skills to solve principal-agent conflicts.

Design/methodology/approach

An analysis is conducted on firms operating in the life segment of the Spanish insurance industry over an eight-year sample period. First, the author estimates cost efficiency and profit inefficiency using data envelopment analysis. Cost efficiency enables one to evaluate if the use of the banking channel increases cost efficiency. Profit inefficiency is addressed to identify the existence/absence of product-quality differences. The performance implications of using bancassurance are analyzed by applying Heckman's two-stage random-effects regression model.

Findings

The results support the product-quality arguments. The use of banking channel was found to increase cost efficiency. However, the distribution channel/s utilized did not affect profit inefficiency.

Practical implications

A regulatory environment that supports the development of bancassurance enables this and alternative distribution channels to be sorted into market niches, where each system enjoys comparative advantages in order to minimize insurer costs and maximize insurer revenues. There is no single optimal insurance distribution system.

Originality/value

This is the first study to investigate why bancassurance coexists with alternative insurance distribution channels.

Details

International Journal of Bank Marketing, vol. 40 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 9 May 2016

Chengli Liu, C.K.M. Lee and K.L. Choy

The purpose of this paper is to determine the optimal sale effort deployment under dual-channel distribution which combines a traditional brick and mortar retail channel from the…

1059

Abstract

Purpose

The purpose of this paper is to determine the optimal sale effort deployment under dual-channel distribution which combines a traditional brick and mortar retail channel from the partner retailer and an online direct channel from the manufacturer.

Design/methodology/approach

A sales effort competition game is set up in the dual-channel distribution between the manufacturer and the retailer. Demand under sales efforts is determined based on the consumer valuation, consumer’s channel preference and sales efforts. Then, the optimal sales effort deployment is studied with a game theory approach which allow the retailer and the manufacturer to maximize their own profit.

Findings

Consumer’s channel preference is a key parameter of the demand assignment in the dual-channel distribution. Interestingly, the optimal sales effort and the profit of the manufacturer and the retailer can be limited by the other’s efficiency of sales effort. The finding suggests that the manufacturer and the retailer should collaborate to enhance the efficiency of the sales effort. It also shows that the manufacturer can utilize the direct channel as an important marketing channel even though no profit is obtained through the direct channel.

Research limitations/implications

This research provides a new method to model the sales effort in the dual-channel distribution. The optimal sales efforts based on the consumer behavior are determined. However, since this study assumes a consistent product price across channels, the results is not applicable for a retailer who can set their own price.

Practical implications

It is a win-win situation for adoption of the dual-channel distribution although the manufacturer can benefit more. Additionally, direct channel can be used as an effective marketing channel.

Originality/value

This research contributes to a better understanding of demands in dual-channel distribution under sales efforts. Additionally, the research results provide a useful framework of sales effort deployment under different consumers’ channel preferences in the dual-channel distribution.

Details

Industrial Management & Data Systems, vol. 116 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 8 February 2021

Lars-Erik Gadde

The purpose of this paper is to examine the transformation of the perspective applied to distribution structures in the late 1900s. This change implied that the previous focus on…

2803

Abstract

Purpose

The purpose of this paper is to examine the transformation of the perspective applied to distribution structures in the late 1900s. This change implied that the previous focus on channel management by a channel captain was abandoned because of changes in the business reality. This perspective was replaced by models and concepts featuring collaboration and joint coordination between actors and relationships embedded in networks.

Design/methodology/approach

Changes of perspectives on phenomena are assumed to occur through the dynamic interplay between business reality, the conceptualisation of this reality and the managerial recommendations derived from this conceptualisation. The study is based on a thorough longitudinal literature review.

Findings

Shifts of perspectives occur when there is an increasing mismatch between the current business reality and mainstream conceptualisations. In this transformation, new constructs are required to illustrate new aspects of the business reality, exemplified in the study by interaction and networks. Some established concepts lose their significance, illustrated by the channel captain. Others may be re-interpreted, as is the case with the power concept. The study also shows that “forgotten” conceptualisations can be re-wakened, exemplified by the view of distribution structures as network constellations. In turn, these changes in the conceptualisation of distribution impact the managerial recommendations.

Originality/value

To the best of the author’s knowledge, there are no previous studies analysing how the perspective on a certain phenomenon changes through the dynamic interplay between business reality, conceptualisations and managerial recommendations.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 12 February 2019

Subhajit Bhattacharya

The present competitive marketing environment demands effective role of distribution channels to create and develop a value-based infrastructure where companies can easily…

Abstract

Purpose

The present competitive marketing environment demands effective role of distribution channels to create and develop a value-based infrastructure where companies can easily distribute their products into the consumers’ market. Relationship bonding between the channel partners and the company strengthens marketing efficiencies of the distribution function, which is supported by policies of the companies relating to joint business actions and value sharing. Both the tangible functional value and emotional functionalities play a vital role in the continuous success and the growth of distribution channel. The purpose of this paper is to understand the value-based distribution channel relationship for greater channel equity in fast-moving consumer goods (FMCG) sector.

Design/methodology/approach

The present study used a survey design to collect data from 156 FMCG channel members selected through stratified random sampling procedure. A five-point Likert-type scale was personally administered to obtain participants’ responses. Data were analysed using the Relative to an Identified Distribution (RIDIT) approach.

Findings

The findings of the current research paper have demonstrated that in the current competitive marketing environment, only the functional values are not enough. This research paper identifies that there is a strong need of emotional touch and linkages which leads to a symbiotic channel–company relationship and commitments in FMCG industry.

Originality/value

The present research is an original and innovative thought process of evaluating factors influencing the value-based distribution channel relationship for greater channel equity pertaining to FMCG industry by using the RIDIT approach.

Details

Journal of Indian Business Research, vol. 11 no. 3
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 4 July 2016

Rafay Ishfaq, C. Clifford Defee, Brian J Gibson and Uzma Raja

The purpose of this paper is to identify the realignment of the physical distribution process for store-based retailers in their efforts to integrate the online channel into their…

8884

Abstract

Purpose

The purpose of this paper is to identify the realignment of the physical distribution process for store-based retailers in their efforts to integrate the online channel into their business model. Multiple attributes of the physical distribution process are evaluated to identify associations with order fulfillment methods adopted by omni-channel retailers.

Design/methodology/approach

A multi-method approach is used which includes qualitative evaluation of 50 interviews of supply chain executives from large retailers. Additionally, secondary data about firm size, store and distribution networks, online sales, distribution configuration, and order delivery options are used. The findings of qualitative analysis are incorporated into a quantitative classification-tree analysis to identify associations among distribution attributes, order fulfillment methods and order delivery services.

Findings

Retailers are developing a consistent omni-channel physical distribution process in which stores undertake a bigger role in order fulfillment and delivery. Level of online sales, size of distribution network, number of sales associates at a store, and number of years engaged in the online channel are identified as having strong associations with the type of order fulfillment method used by omni-channel retailers. The study finds that retailers are focussed on integrating their store and DC inventories and have the benefit of scale with a large store network.

Practical implications

Retailers are reconfiguring their physical distribution processes in the complex omni-channel environment can use the findings of this study to evaluate their strategy and identify the level of realignment effort that is needed. A better understanding of the requirements of physical distribution in an omni-channel setting will guide retailers in developing requisite operational capabilities.

Originality/value

This paper provides a first in-depth look at order fulfillment choices in omni-channel retail and identifies efforts that are underway to realign key elements of the physical distribution process.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 6/7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 11 January 2016

Pietro Beritelli and Roland Schegg

Hotel managers are being challenged by the increasing multitude of distribution and sales channels. Online travel agencies (OTAs) in particular generate a great deal of…

8606

Abstract

Purpose

Hotel managers are being challenged by the increasing multitude of distribution and sales channels. Online travel agencies (OTAs) in particular generate a great deal of uncertainty: Which are the best ones? Which ones offer the best conditions? How many channels are optimal for my hotel? How can I evaluate costs versus benefits? These and other questions concerning the optimal online distribution channel strategy have produced different reactions in practice. The aim of this paper is to challenge the need for an over-optimization of channel strategy by proposing that the consumer, at the end, deals with a network of information presented on one networked environment, including the Web. Hence, the network effect of the numerous online platforms is what drives consumer choice and, finally, bookings.

Design/methodology/approach

A series of multiple regressions with representative samples of hotels in Switzerland from the years 2009, 2010, 2011 and 2012 was performed to estimate the importance of the number of platforms against other independent variables. Additionally, further multiple regressions with samples from the years 2011 and 2012 using the most important platforms (first-tier channels) shows again that the number of platforms is more important.

Findings

The analyses show that the estimated number of online bookings by the respondents in the hotels is a result of the number of channels, not the type of channel. This is particularly true for non-categorized establishments and one- and two-star hotels. The analyses do not confirm the billboard effect, according to which particular platforms (first-tier channels) increase the probability of bookings. Thus, the survival strategy is to maximize share of shelf and to build on interdependencies and network effects.

Research limitations/implications

The study looks only at online bookings. Additional research into the connection between online and offline channels, particularly from the viewpoint of the consumer, will provide further insights. The study looks at the booking volume per channel, not the monetary sales volume or the profit. A study that quantifies not only the volume of bookings but also the total profit or the contribution to profit per channel could quantify the benefits of the multi-channel strategy.

Originality/value

The multiple online channel strategy seems to be the more effective approach to maximizing bookings online, regardless of the platforms chosen. Results of the study challenge the current opinion among practitioners that the multitude of distribution channels forces them to choose among single online channels and, therefore, drives the search for criteria to assess these channels or even to disregard them. The consistent results across 2009-2012 show that even in the turbulent phase of the advent of OTAs in the travel industry, hotels can adopt a winning strategy. Finally, the results suggest that the intermediation of online distribution of hotel beds has approached the condition of perfect competition, causing the OTA business model to be cannibalized.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 24 February 2012

Gabriel Sperandio Milan, Eric Dorion and José Alberto da Rosa Matos

The purpose of this paper is to identify the mechanisms adopted by the distribution channel of a leading Brazilian truck manufacturing company, which generates various conflicts…

2903

Abstract

Purpose

The purpose of this paper is to identify the mechanisms adopted by the distribution channel of a leading Brazilian truck manufacturing company, which generates various conflicts that have a negative impact on the performance of the channel operations, with a focus on the conflict causes. The study aims to expand the domain of distribution channel conflict management as a benchmark activity by exploring the potential sources of conflict occurring in a major Brazilian distribution channel.

Design/methodology/approach

The research method is exploratory, using a case study from a major company of the automotive sector of Serra Gaúcha, Brazil. The distribution processes are analyzed in a real and specific context, implemented by means of individual, in‐depth interviews, with the application of a basic script of questions.

Findings

The findings indicate the existence of seven potential sources of conflict and 23 conflicting issues, considered relevant and of negative impact on the distribution channel performance of the manufacturing company.

Research limitations/implications

The sample cannot be considered as representative but it is, to a certain point, reliable because it refers to one entity only.

Practical implications

The results of this research can serve as indicators for managers of a company to invest time and the necessary resources for the maintenance and consolidation of the relationships with its dealerships.

Originality/value

The present work shows its originality through the study of consumers' preference for determined products and services as a conflict management basis for Brazilian national distribution channels' stakeholders. In this context, a distribution channel conflict case study may constitute an important empirical source of data for a benchmark strategy.

1 – 10 of over 49000