Managing a distribution channel under asymmetric information with performance requirements

Article Abstract:

The operations of a distribution channel can be enhanced through the setting up of performance requirements or standards imposed by the manufacturer upon the retailer. These standards refer an agreement between the two entities regarding the conditions imposed by the manufacturer on price and/or service and the setting up of information systems that can be used to check retailers if the requirements are being met. However, an analysis of a performance requirement model would reveal that the absence of one performance dimension, price or service, may stifle efforts to improve channel performance. Price standards are observed to influence retailers in revealing their demands while service standards are significant in aligning the interests of both entities.

Standards, Models, Retail industry, Retail trade

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Integrating distribution strategy and tactics: a model and an application

Article Abstract:

The design of distribution systems requires both a strategic and a tactical decision. The strategic decision defines the number of marketing channels between a manufacturer and a customer. The tactical decision, on the other hand, determines the structure of marketing channel management. An integrated model, that illustrates the interaction of the strategic issue of channel levels with the tactical issue of price rebates use, is developed and applied.

Manufacturing industries, not elsewhere classified, Research, Pricing, Distribution

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