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Mathematical Models of Distribution Channels (International Series in Quantitative Marketing)
 
 
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Mathematical Models of Distribution Channels (International Series in Quantitative Marketing) [Hardcover]

Charles A. Ingene (Author), Mark E. Parry (Author)

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International Series in Quantitative Marketing October 29, 2004
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 conclusions; they also develop a methodology that will enable researchers to avoid falling under the influence of any Channel Myth.

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From the Back Cover

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 conclusions; they also develop a methodology that will enable researchers to avoid falling under the influence of any Channel Myth. At the heart of their analysis is a single-manufacturer/multiple-retailer meta-model that embraces any degree of inter-retailer competition and any distribution of market shares. In Chapters 1 and 2 the authors provide an introduction to the current, analytical literature on distribution channels, and they present an intuitively appealing prologue to the Channel Myths that are developed rigorously in later Chapters. In Chapters 3, 4, and 10 they extend the literature by ascertaining the relationship between the manufacturer-optimal wholesale-price strategy and channel breadth. Specific analyses include multiple, non-competing retailers, multiple states-of-nature, and multiple, competing retailers. In Chapters 5-7 the authors determine the profitability of various wholesale-price strategies; this analysis culminates in Chapters 8 and 9 with the determination of the (very limited) conditions under which channel coordination can be optimal for the manufacturer. In Chapter 11 they prove that existing methods of measuring the effect of a change in the degree of inter-retailer substitutability are totally misleading. They then develop an original, theoretical basis for measuring the impact of a change in the degree of inter-retailer substitutability that yields insightful, intuitively appealing results. In Chapter 12 the authors set forth an agenda for future research based on a meta-model that embraces all existing models in the literature. They also issue an appeal for creation of a "Unifying Theory of Distribution Channels" that will enable researchers to work independently and yet to contribute toward the common goal of deepening the marketing science professions’ understanding of distribution channels.

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Inside This Book (learn more)
First Sentence:
The marketing science literature on distribution channels originated with nearly simultaneous studies of (i) competition between channels and (ii) cooperation within a bilateral-monopoly channel. Read the first page
Key Phrases - Statistically Improbable Phrases (SIPs): (learn more)
competitive substitutability, ith retailer, marketing science literature, jth retailer, coordinating menu, optimal wholesale price, constant channel breadth, when retailers compete, channel profit distribution, manufacturer profit declines, optimal fixed fee, three parametric dimensions, yield identical profits, less profitable retailer, fixed fee component, fixed fee extracts, two competing retailers, net zero profit, coordinating tariff, coordinated channel, maximizes channel profit, retailer fixed costs, manufacturer profit function, menu zone, manufacturer profit maximization
Key Phrases - Capitalized Phrases (CAPs): (learn more)
Channel Myths, Zero-Coverage Boundary, Fixed-Cost Modeling Myth, Identical-Competitors Meta-Myth, Channel-Coordination Strategic Myth, Unifying Theory of Distribution Channels, Zonal Scenario, Comparing the Single-Outlet Option, Shared-Profit Boundary, Empirical-Evidence Criterion, Nested-Models Criterion, Wholesale-Price Region, Full Profit-Extraction Boundary, Incomplete-Coverage Boundary, Zero-Coverage Zone, Aggregate-Demand Modeling Myth, Infeasible-Output Boundary, Stackelberg Zones, The Profit-Equality Boundary, Competitive Substitutability Modeled, Incomplete-Coverage Zone, Manufacturer-Optimal Strategies, Comparison D's Profit-Equality Boundary, Multiple States-of-Nature Modeling Myth, Journal of Retailing
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