TITLE

Implications of Channel Structure for Leasing or Selling Durable Goods

AUTHOR(S)
Bhaskaran, Sreekumar R.; Gilbert, Stephen M.
PUB. DATE
September 2009
SOURCE
Marketing Science;Sep/Oct2009, Vol. 28 Issue 5, p918
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In spite of the fact that many durable products are sold through dealers, the literature has largely ignored the issue of how product durability affects the interactions between a manufacturer and her dealers. We seek to fill this gap by considering a durable goods manufacturer that uses independent dealers to get her product to consumers. In contrast to much of the literature, we specifically consider the possibility that if the manufacturer sells her product, then the dealers can either sell or lease it to the final consumer. One of our more interesting findings is that, when the level of competition among dealers is high, the manufacturer prefers to use a lease- brokering arrangement in which the dealers earn a margin for brokering leases between the manufacturer and end consumers, instead of selling her product to the dealers. This complements existing results that show that when suppliers of durable goods interact directly with consumers, selling is the dominant strategy for high levels of competitive intensity.
ACCESSION #
47192292

 

Related Articles

  • Dual distribution channels: The competition between rental agencies and dealers. Purohit, Devavrat // Marketing Science;1997, Vol. 16 Issue 3, p228 

    Managerial decisions involving marketing channels are among the most critical that an organization must make. Part of the reason for this importance is that relationships between manufacturers and their intermediaries usually involve long-term commitments that are difficult to change. On the...

  • What technology wrought: Distribution channel in flux. Briones, Maricris G. // Marketing News;02/01/99, Vol. 33 Issue 3, p1 

    This article presents information on how the high technology marketing channel is rapidly changing. With the direct-sales model becoming increasingly popular for computer and network products, distribution partners who helped make computers ubiquitous in the workplace are scrambling for ways to...

  • How Potential Conflict Drives Channel Structure: Concurrent (Direct and Indirect) Channels. Sa Vinhas, Alberto; Anderson, Erin // Journal of Marketing Research (JMR);Nov2005, Vol. 42 Issue 4, p507 

    The authors study business-to-business manufacturers' simultaneous usage of vertically integrated (direct) and third-party (indirect) channels of distribution to serve one geographical market (possibly comprising several market segments) with the same product line. Most theoretical approaches to...

  • BUYER-SELLER INTERACTIONS IN MATURE INDUSTRIAL MARKETS: BLURRING THE RELATIONAL-TRANSACTIONAL SELLING DICHOTOMY. Geiger, Susi; Finch, John // Journal of Personal Selling & Sales Management;Summer2011, Vol. 31 Issue 3, p255 

    Sales practitioners continue to come to terms with the selling conditions of mature consumer and business markets. Mature markets display signs such as cost-focused competition, similarity in the perceived functionality of offerings, and multiple suppliers vying for highly knowledgeable and...

  • THE ANTECEDENTS OF DOUBLE COMPENSATION IN CONCURRENT CHANNEL SYSTEMS IN BUSINESS-TO-BUSINESS MARKETS. Sa Vinhas, Alberto; Anderson, Erin // Journal of Personal Selling & Sales Management;Spring2008, Vol. 28 Issue 2, p133 

    We look at a channel compensation strategy frequently adopted by business-to-business manufacturers that use their own channels and independent entities simultaneously to sell their products in a given territory: compensating both channels (double compensation) for a sale when both channels...

  • Good, Better, or Best? Wyner, Gordon A. // Marketing Management;Nov/Dec2005, Vol. 14 Issue 6, p8 

    The article focuses on the challenges of setting the right goals for marketing. In the article, marketing is defined as being about "generating profitable revenue through brands that enable customer acquisition and management." Achieving these goals involves the setting of more specific goals,...

  • Interdependence and Its Consequences in Distributor-Supplier Relationships: A Distributor Perspective Through Response Surface Approach. KIM, STEPHEN KEYSUK; PING-HUNG HSIEH // Journal of Marketing Research (JMR);Feb2003, Vol. 40 Issue 1, p101 

    Despite its importance for marketing channels research, the effect of interdependence on channel outcome variables remains elusive because of the inconsistent manner in which it is operationalized and the analytical methods used to assess its impact. To address those gaps, the authors first...

  • Distributing through multiple channels in industrial wholesaling: how many and how much? K√§uferle, Monika; Reinartz, Werner // Journal of the Academy of Marketing Science;Nov2015, Vol. 43 Issue 6, p746 

    The vast number of channel types and broad range of possible channel configurations makes identifying a product's most efficient route to end-users challenging for today's managers. This study analyzes drivers of a firm's distribution intensity and their respective effects on performance. The...

  • Data that doesn't do the business. Cubitt, Emily // Data Strategy;Dec2007, Vol. 3 Issue 8, p14 

    The article examines the varying prices of business-to-business (B2B) data files. Contractors of databases should be aware that prices vary along with the quality of information within the database. Contracting an inaccurate database may result in long-term loss because of low response rate. To...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics