Manufacturer Encroachment, Store Brand Introduction and Sales Modes

DOI

10.2991/978-94-6463-638-3_58How to use a DOI?

Keywords

reselling; agency selling; manufacture encroachment; store brand; game theory

Abstract

Reselling and agency selling are two common modes used by manufacturers to sell products through e-tailers, in addition, manufacturers may establish direct channel to encroach on the market, and e-tailers could introduce store brands to compete with them. This paper explores the interaction between the manufacturer’s encroachment, sales modes and the e-tailer’s store brand strategy. Our findings reveal that e-tailer is more likely to introduce store brand at moderate levels of agency fees when there is no manufacturer encroachment, whereas e-tailer is more likely to introduce store brand at lower or higher levels of agency fees when manufacturer encroaches and choosees a dual-channel structure. In addition, a moderate increase in the quality of the store brand facilitates the e-tailer’s the introduction strategy, but a higher quality may have the opposite effect. When the agency fee is at a low level, the manufacturer’s direct-only channel structure can deter e-tailer from introducing store brand if the direct channel disadvantage is small; manufacturer’s encroachment strategy can also keep store brand out of the market when the agency fee is at a moderate level.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Wen Tao
PY  - 2024
DA  - 2024/12/30
TI  - Manufacturer Encroachment, Store Brand Introduction and Sales Modes
BT  - Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)
PB  - Atlantis Press
SP  - 583
EP  - 602
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-638-3_58
DO  - 10.2991/978-94-6463-638-3_58
ID  - Tao2024
ER  -