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Article
Publication date: 14 October 2014

Christian Rosen, Marjaana Gunkel and Christopher Schlaegel

The purpose of this paper is to analyze the coexistence of independent and manufacturer-owned distributors within the same distribution system. In particular, the authors seek to…

Abstract

Purpose

The purpose of this paper is to analyze the coexistence of independent and manufacturer-owned distributors within the same distribution system. In particular, the authors seek to identify those factors that determine the use of dual distribution and the effect of dual distribution systems on different economic outcomes.

Design/methodology/approach

Using a case study-based approach, the authors compare different brands in different European markets of a German automobile manufacturer using 24 expert interviews in Germany, Sweden and Spain.

Findings

Our results demonstrate the importance of limited resources, investment specificity, location, divergent interests and competitive strategies for the development of dual distribution structures. The results show that the overall distribution system performance is positively related to dual distribution.

Research limitations/implications

The generalizability of the findings is limited due to the use of cases for different brands of one large corporation within a specific industry and the limited number of countries that were examined. This study is also limited to the subjective evaluation of firm performance and the qualitative evidence provided by the interviewees in our sample group. Our study contributes to the ongoing debate on the use of independent and manufacturer-owned distributors among distributive vertical chains. Based on the qualitative findings, propositions for future research and managerial implications are provided.

Originality/value

While in previous research, the explanatory approach of make-or-buy has often been used for examining dual distribution, the authors combine insights from different theoretical streams (transaction cost theory, market-based view, resource-based view and principal-agent theory) to identify and empirically investigate the antecedents and outcomes of dual distribution. Furthermore, while prior research focused on single-country studies and franchise systems, the authors examine a multi-country sample in the automobile industry and expand the findings of the existing literature by covering different brands.

Details

Management Research Review, vol. 37 no. 11
Type: Research Article
ISSN: 2040-8269

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…

1068

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

Article
Publication date: 1 May 1991

Daniel C. Bello, David J. Urban and Bronislaw J. Verhage

Although instability characterises export channels, little researchhas examined the interfirm evaluations that are related to amanufacturer′s continued use of export middlemen. In…

Abstract

Although instability characterises export channels, little research has examined the interfirm evaluations that are related to a manufacturer′s continued use of export middlemen. In this research, a manufacturer′s evaluations of its international intermediary are divided into performance, dependence, and importance dimensions. Theoretical and empirical literatures are used to frame hypotheses linking each evaluative dimension to an aspect of the manufacturer′s channel design strategy. The results show that manufacturers′ evaluations of their middlemen are systematically related to the economic and organisational strategies used by manufacturers. The discussion draws important implications for managing the indirect export channel.

Details

International Marketing Review, vol. 8 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 April 1991

Changhae Park, Kevin M. Klein, Al F. Tasch, Robert B. Simonton, Steve Novak and Gayle Lux

A comprehensive and computationally efficient modeling strategy for the rapid and accurate simulation of implanted impurity distribution profiles in single‐crystal silicon has…

Abstract

A comprehensive and computationally efficient modeling strategy for the rapid and accurate simulation of implanted impurity distribution profiles in single‐crystal silicon has been developed. This modeling strategy exploits the advantages of both Monte Carlo simulation and semi‐empirical models by combining the two approaches in a complementary manner. The dual Pearson semi‐empirical model is used to accurately and efficiently model the dose and implant angle dependence of impurity profiles as well as the dependence on energy. This new comprehensive model allows convenient and accurate simulation of implanted boron distribution profiles in single‐crystal silicon as a function of dose, tilt angle, and rotation angle, in addition to ion energy, and it has been demonstrated by implementation in the process simulation code SUPREM III.

Details

COMPEL - The international journal for computation and mathematics in electrical and electronic engineering, vol. 10 no. 4
Type: Research Article
ISSN: 0332-1649

Article
Publication date: 28 August 2023

Bin Cao, Rameshwar Dubey and Zongwei Luo

The consumers want to purchase the target products in the right place, whereas the manufacturers want to allocate their possible products to optimal distribution channels. The…

Abstract

Purpose

The consumers want to purchase the target products in the right place, whereas the manufacturers want to allocate their possible products to optimal distribution channels. The manufacturer must know how to handle itself in this business. The study aims to examine the B2B channel decision-making with different product qualities in a non-cooperative supply chain.

Design/methodology/approach

The authors develop a B2B Manufacturer-Stackelberg game as an analytical framework, combining asymmetric preference of purchase channels choice by the consumers, a continuous quality setting of the manufacturer and differential channel structure to study the manufacturer’s product strategy and channel optimisation. By horizontal comparisons across four channel structures, product variety can be classified into the differential quality-level zone through exogenous quality intervention, and the preference of manufacturers in each quality-level zone within the structures can be ranked.

Findings

Theoretically and practically, the hybrid-channel structure should be completely neglected when the direct channel dominates the retail channel. In contrast, dual-channel structures dominate single channels irrespective of the channel power, and channel preferences between high-quality and low-quality zones are stable, whereas the preference in medium-quality zone is unstable. In addition, the supply chain system cannot achieve global Pareto improvement without any additional coordination mechanism between the manufacturer and the retailer.

Originality/value

The extended results by numerical examples suggest that the bigger the area of the medium-quality zone, the more significant the product variety of the manufacturer.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 15 January 2024

Yonghong Cheng, Jiaxin Pan and Teng Yao

Motivated by the real-world practice of the thriving e-commerce, manufacturers are transcending traditional boundaries of merely producing and selling directly by implementing…

Abstract

Purpose

Motivated by the real-world practice of the thriving e-commerce, manufacturers are transcending traditional boundaries of merely producing and selling directly by implementing encroachment. Concurrently, supply chain (SC) members who overlook the corporate social responsibility (CSR) sharing will be left behind, which is closely linked to their profits. This paper aims to investigate a better way to share CSR under the scenarios of manufacturer encroachment and no-encroachment.

Design/methodology/approach

This paper constructs game-theoretic models in a SC consisting of a manufacturer (M) and a retailer (R), where the manufacturer can sell products by retailing, and may sell directly by implicating encroachment. The manufacturer and retailer jointly consider whether to share CSR and the proportion of it by taking consumer surplus into account. Furthermore, equilibriums for each model are derived using backward induction. Then, the authors analyse the impact of CSR sharing proportion and compare the equilibrium outcomes under different scenarios. Finally, the numerical analyses are presented to verify the results.

Findings

Several interesting results are found in this paper. First, the retailer shares more CSR can benefit SC members and social welfare when the manufacturer does not implement encroachment. However, the results may change which is decided by the unit cost of encroachment when the manufacturer does so. Second, the proportion of CSR shared by manufacturer and the unit cost of encroachment has an interactive impact on equilibrium outcomes. Finally, both manufacturer encroachment and SC members share CSR may be the best for the perspective of SC members and consumers.

Practical implications

Based on the analytical results, this paper provides novel managerial implications to assist manufacturer and retailer in determining the optimal strategies for CSR sharing and encroachment. Furthermore, the appropriate proportion of CSR shared by manufacturer and the unit cost of encroachment may let manufacturer, retailer and consumer surplus achieve a win-win-win situation.

Originality/value

To the best of the authors’ knowledge, this paper is the first attempt to explore the strategy of CSR sharing under the scenarios of manufacturer encroachment and no-encroachment.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 27 September 2011

Vincent Kotwicki and Meshan Al‐Otaibi

The purpose of this paper is to present a case study on how drinking water consumption could be potentially reduced by the introduction of dual water distribution networks. Since…

1148

Abstract

Purpose

The purpose of this paper is to present a case study on how drinking water consumption could be potentially reduced by the introduction of dual water distribution networks. Since water of this quality is required only for drinking, cooking, bathing, and washing, delivering such water for uses that require non‐drinking water quality represents a tremendous waste of water and energy, and contributes to environmental pollution.

Design/methodology/approach

An overview of dual distribution networks in several countries is presented. Kuwait, in which 86 percent of the freshwater network has a parallel brackish water network, is the leader in this field, with brackish water used for a range of outdoor activities. The residential sector is the major consumer of freshwater in Kuwait and the control of demand in this sector will be a key factor in curbing the overall demand, which without any demand management measures is expected to quadruple by 2025. Computer modeling based on existing water use statistics and the proposed phasing‐in of a dual distribution network for indoor use in households has been undertaken to determine how the large quantities of reclaimed can be used to reduce drinking water consumption.

Findings

The paper presents a modeling exercise that demonstrates that by using reverse osmosis (RO) treated wastewater for toilet flushing and watering the gardens, water consumption demand can be stabilized at present levels over a 20‐year period.

Originality/value

The paper concludes that with foresight and long‐term planning it is feasible to implement a dual water supply network in a major city, on a scale which may lead to saving up to 25 percent of drinking quality water on top of other traditional water conservation measures.

Details

Management of Environmental Quality: An International Journal, vol. 22 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 8 November 2013

Kusum Mundra

This paper revisits the derivation and properties of the Allen-Uzawa and Morishima elasticities. Using a Swiss dataset, this paper empirically estimates various elasticities both…

Abstract

Purpose

This paper revisits the derivation and properties of the Allen-Uzawa and Morishima elasticities. Using a Swiss dataset, this paper empirically estimates various elasticities both in a dual and primal framework using a production theory open economy model and tests for linear homogenous technology. In addition to reporting elasticity at the mean, the standard practice in the literature, this paper also calculates nonparametric distribution of various elasticities. The paper aims to discuss these issues.

Design/methodology/approach

To assess the effect of price change on input, the paper estimates a translog cost function and to assess the effect of quantity change on price, the paper estimates the translog distance function using the data on Swiss economy. The paper estimates Allen-Uzawa and Morishima elasticity both under homogenous and non-homogenous technology using the Swiss dataset of one aggregate gross output and four inputs (resident labor, non-resident labor, imports, and capital) over 1950-1986. Elasticities are reported and compared at the mean as well as explored by looking at the range and nonparametric distribution.

Findings

This paper shows that constant returns to scale are easily rejected in this dataset and that the elasticities, both qualitatively and quantitatively, are very different under homogenous and non-homogenous technology. These elasticities can switch from complements to substitutes or vice versa when one moves away from the mean of the sample. The equality of the nonparametric elasticity distributions under homogenous vs non-homogenous technology is rejected in all cases except one.

Originality/value

This paper gives a clear derivation and interpretation of different elasticities as well as demonstrates using a dataset how to systematically go about empirically estimating these elasticities in a dual and primal framework. It shows that linear homogenous technology can be easily rejected and the elasticities, both quantitatively and qualitatively, are very different under homogenous and non-homogenous technology. This paper is also very valuable because it shows that the standard practice of reporting elasticity at the mean might not be adequate and there is a possibility that these elasticities can switch from complements to substitutes or vice versa when one moves away from the mean of the sample.

Details

Indian Growth and Development Review, vol. 6 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 25 October 2023

Wen Pin Gooi, Pei Ling Leow, Jaysuman Pusppanathan, Xian Feng Hor and Shahrulnizahani Mohammad Din

As one of the tomographic imaging techniques, electrical capacitance tomography (ECT) is widely used in many industrial applications. While most ECT sensors have electrodes placed…

Abstract

Purpose

As one of the tomographic imaging techniques, electrical capacitance tomography (ECT) is widely used in many industrial applications. While most ECT sensors have electrodes placed around a cylindrical chamber, the planar ECT sensor has been investigated for depth and defect detection. However, the planar ECT sensor has limited height and depth sensing capability due to its single-sided assessment with the use of only a single-plane design. The purpose of this paper is to investigate a dual-plane miniature planar 3D ECT sensor design using the 3 × 3 matrix electrode array.

Design/methodology/approach

The sensitivity map of dual-plane miniature planar 3D ECT sensor was analysed using 3D visualisation, the singular value decomposition and the axial resolution analysis. Then, the sensor was fabricated for performance analysis based on 3D imaging experiments.

Findings

The sensitivity map analysis showed that the dual-plane miniature planar 3D ECT sensor has enhanced the height sensing capability, and it is less ill-posed in 3D image reconstruction. The dual-plane miniature planar 3D ECT sensor showed a 28% improvement in reconstructed 3D image quality as compared to the single-plane sensor set-up.

Originality/value

The 3 × 3 matrix electrode array has been proposed to use only the necessary electrode pair combinations for image reconstruction. Besides, the increase in number of electrodes from the dual-plane sensor setup improved the height reconstruction of the test sample.

Details

Sensor Review, vol. 43 no. 5/6
Type: Research Article
ISSN: 0260-2288

Keywords

Article
Publication date: 8 February 2021

Saied Farham-Nia and Alireza Ghaffari-Hadigheh

The aim of this paper is to study the optimal pricing decision in a supply chain with a dual distribution channel in a centralized and decentralized decision-making systems and…

Abstract

Purpose

The aim of this paper is to study the optimal pricing decision in a supply chain with a dual distribution channel in a centralized and decentralized decision-making systems and investigate the economic impact of retail services on pricing behaviors with respect to the power structures.

Design/methodology/approach

To reach the equilibrium behavior of decision-makers, two-stage optimization, the Stackelberg game and the Bertrand–Nash game have been used. Also, to explore the effect of environmental uncertainty on the behavior of decision-maker, demand functions are characterized as an uncertain price dependent, service dependent and channel dependent. Decision parameters are based on experts’ belief degree, in the sense of uncertainty theory initiated by Liu (2007).

Findings

Obtained results reveal that the retail services have a strategic role in the centralized supply chain and the decentralized supply chain with dominant manufacturer, while both the supply chain and the consumer suffer from higher environmental indeterminacy.

Research limitations/implications

This study is based on possible scenarios of dual distribution system only. Further research is recommended to investigate the applicability of the authors framework in different distribution systems.

Practical implications

The study findings are believed to be valuable for supply chains and organizations about to make a strategic decision on price of their good/service.

Originality/value

The paper contributes to the scarce literature on Uncertainty Theory initiated by Liu (2007), and combination of it with Game Theory for pricing in distribution system of supply chains. The study also contributes by investigating impact of non-price competitive factor (level of service) on pricing strategy.

Details

Journal of Modelling in Management, vol. 16 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

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