TITLE

Costs and Benefits of Inducing Intrabrand Competition: The Role of Limited Liability

AUTHOR(S)
Desiraju, Ramarao
PUB. DATE
June 2004
SOURCE
Marketing Science;Summer2004, Vol. 23 Issue 3, p429
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
When is inducing intrabrand competition (via nonexclusive distribution) an optimal strategy? To address this issue, a static model is developed to examine two settings. The manufacturer uses exclusive distributors in the first setting and nonexclusive distributors in the second. The analysis indicates that the choice of distribution rests critically on whether the manufacturer can effectively extract surplus from the distributors. Due to a variety of institutional reasons, the distributors' liability is often limited in performing on behalf of the manufacturer; such limited liability restricts how much of the distributors' surplus can be extracted. When the distributors' surplus cannot be fully extracted, the manufacturer may prefer nonexclusive distribution even when distributors can free-ride on each other's efforts.
ACCESSION #
14514528

 

Related Articles

  • The 5-Ton Elephant Returns. Gordon, David; Ray, Allen // Electrical Wholesaling;Mar2007, Vol. 88 Issue 3, p34 

    The article focuses on the manufacturers' perspective on private labeling. According to the author, many name-brand manufacturers may reject the idea of private labeling, but fear that their electrical distributors will aim to private-label high-volume stock-keeping units (SKUs) and reduce their...

  • BRANDS CLAMOUR FOR DISCOUNTER SHELF SPACE.  // Checkout;Dec2008, Vol. 34 Issue 12, p10 

    The article reports on the business plans of branded goods manufacturers. These groups are clamouring to get their products onto the shelves in Aldi and Lidl as they seek to offset the downturn in sales in conventional retail channels. It means that brand owners are now pushing to get their...

  • The Obligation to Sell via Entertainment. Vincent, Laurence // Brandweek;1/17/2005, Vol. 46 Issue 3, p16 

    Offers advice to brand managers on boosting earnings through entertainment marketing initiatives. Tools being offered by the Internet and direct marketing practices; Sales channels; Role of entertainment properties in customer loyalty programs.

  • Gray Market Presents Legal Challenge for Brands. Casabona, Liza; Derby, Meredith // WWD: Women's Wear Daily;10/30/2006, Vol. 192 Issue 90, p26 

    The article illustrates the impact of gray-market goods on brand name products. Gray goods are legitimate products that are distributed through channels not authorized by their original manufacturer. Under current legal statutes, gray-market items are only illegal if there is a material...

  • Each to their own. Mitchell, Alan // Brand Strategy;Feb2007, Issue 209, p9 

    The article discusses the author's perception concerning the brand ecosystem, which is composed of many species from which he refers as brands of different kinds, which play a specific role in the lives of its customers, within its owner's corporate strategy or in its distribution channels. He...

  • Got brand? Prove it! BOYLE-BRAYFIELD, LOIS // Multichannel Merchant (Penton Media, Inc.);Nov2008, Vol. 4 Issue 11, p38 

    The article offers tips for effectively delivering and sustaining a brand. Companies should let their customers know that they are special and important to them. When having a dialogue with customers, the company's unique differentiation should be reiterated. Since every marketing channel offer...

  • Caterpillar CAT. Kearney, John // Morningstar StockInvestor;12/15/2008, Vol. 8 Issue 6, p9 

    The article presents a corporate profile of Catterpillar Inc. The company is one of the world's premier industrial firms which are solidified by their manufacturing capabilities, distribution network and renowned brand. It notes that since the past years, the company has maintained its earnings...

  • Cherry Blossom gets image revamp.  // Marketing Week;1/27/2005, Vol. 28 Issue 4, p10 

    The article reports that outdoors and travel brand Granger is revamping its flagship shoe polish brand, Cherry Blossom, as it refocuses the whole company. Granger hopes to boost brand awareness through a new emphasis on marketing. The first stage of the relaunch will include an overhaul of the...

  • Trane Begins Planning For 2006 Mandates.  // Air Conditioning Heating & Refrigeration News;10/25/2004, Vol. 223 Issue 8, p6 

    The article focuses on the 2004 National Distributor Meeting of Trane Co. The focus was clearly on 2006 and the mandated change in minimum efficiencies to 13 SEER. The change to 13 SEER is sweeping, and it will reshape the way Trane and its channel partners manufacture, market, sell, distribute,...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sign out of this library

Other Topics