Mathematical Models of Distribution Channels
Mathematical Models of Distribution Channels identifies eight "Channel Myths" that characterize almost all analytical research on distribution channels. The authors prove that models that incorporate one or more Channel Myths generate distorted conclusion
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INTERNATIONAL SERIES IN QUANTITATIVE MARKETING Series Editor: Jehoshua Eliashberg The Wharton School University of Pennsylvania Philadelphia, Pennsylvania USA Other books in the series: Chakravarty, A. and Eliashberg, J. Managing Business Interfaces: Marketing, Engineering, and Manufacturing Perspectives Zaccour, G. Differential Games in Marketing Wind, Yoram (Jerry) and Green, Paul E. Marketing Research and Modeling: Progress and Prospects Erickson, Gary M.: Dynamic Models of Advertising Competition, Ed Hanssens, D., Parsons, L., and Schultz, R.: Market Response Models: Econometric and Time Series Analysis, Ed Mahajan, V., Muller, E. and Wind, Y.: New-Product Diffusion Models Wierenga, B. and van Bruggen, G.: Marketing Management Support Systems: Principles, Tools, and Implementation Leeflang, P., Wittink, D., Wedel, M. and Naert, P.: Building Models for Marketing Decisions Wedel, M. and Kamakura, W.G.: Market Segmentation, 2nd Ed Wedel, M. and Kamakura, W.G.: Market Segmentation Nguyen, D.: Marketing Decisions Under Uncertainty Laurent, G., Lilien, G.L., Pras, B.: Research Traditions in Marketing Erickson, G.: Dynamic Models of Advertising Competition McCann, J. and Gallagher, J.: Expert Systems for Scanner Data Environments Hanssens, D., Parsons, L., and Schultz, R.: Market Response Models: Econometric and Time Series Analysis Cooper, L. and Nakanishi, M.: Market Share Analysis
MATHEMATICAL MODELS OF DISTRIBUTION CHANNELS
by
Charles A. Ingene University of Mississippi
Mark E. Parry University of Virginia
KLUWER ACADEMIC PUBLISHERS NEW YORK, BOSTON, DORDRECHT, LONDON, MOSCOW
eBook ISBN: Print ISBN:
0-387-22790-3 1-4020-7163-9
©2005 Springer Science + Business Media, Inc. Print ©2004 Kluwer Academic Publishers Boston All rights reserved No part of this eBook may be reproduced or transmitted in any form or by any means, electronic, mechanical, recording, or otherwise, without written consent from the Publisher Created in the United States of America
Visit Springer's eBookstore at: and the Springer Global Website Online at:
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Dedications: To my wife and son, Daphne and Ulysses Charles A. Ingene To my father and mother, Arthur and Patricia Mark E. Parry
Contents Preface 1 In the Beginning 2 Toward a Unifying Theory of Distribution Channels 3 Channel Myths and Distribution-Channels Modeling 4 Academic Study
xxi xxi xxii xxiii xxiv
1
A Commentary on Distribution-Channels Modeling 1 Introduction 2 Channel Myths 3 Our Fundamental Assumptions 4 Our Plan for the Monograph 5 Introductory Commentary 6 Appendix
1 1 8 12 17 22 23
2
The Bilateral-Monopoly Model and Channel Myths 1 Introduction 2 The Bilateral-Monopoly Model: The Early Literature 3 The Bilateral-Monopoly Model: Formal Analyses 4 Key Channel Myths Illustrated 5 Commentary
29 29 30 34 48 67
Channels without Competition
71
3
75 Multiple (Exclusive) Retailers 1 Introduction 75 2 The Vertically-Integrated System 77 3 Channel Coordination with Independent Retailers 83 4 Manufacturer
