Strategic interplay between store brand introduction and online direct channel introduction

Hai Li, Kaijun Leng, Qiankai Qing*, Stuart X. Zhu

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

24 Citations (Scopus)
9 Downloads (Pure)

Abstract

This paper investigates the strategic interplay between a national brand manufacturer and a retailer in introducing an online direct channel and a store brand by constructing a game-theoretic model that incorporates the firms' channel and brand strategies. We show that at equilibrium, the store brand is introduced but the online direct channel may or may not be introduced. Interestingly, the firms may be trapped in a prisoner's dilemma when they choose to introduce the online direct channel and store brand. The online direct channel may be introduced if the store brand has been introduced; otherwise it may not be introduced.

Original languageEnglish
Pages (from-to)272-290
Number of pages19
JournalTransportation Research Part E: Logistics and Transportation Review
Volume118
DOIs
Publication statusPublished - Oct-2018

Keywords

  • Online direct channel
  • Store brand
  • Channel and brand strategies
  • Supply chain management
  • Game theory
  • SUPPLY CHAIN COORDINATION
  • NATIONAL BRAND
  • PRIVATE LABELS
  • MANUFACTURER
  • RETAILERS
  • ENCROACHMENT
  • COMPETITION
  • PRODUCT
  • ALLOCATION
  • QUALITY

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