Forms of Competition and Outcomes in Dual Distribution Channels: The Distributor’s Perspective
Alberto Sa Vinhas, Jan B. Heide
Marketing Science · 2015 · Volume 34 · Issue 1
Abstract
The focus of this paper is dual distribution channels in business-to-business markets. We take the perspective of the distributor, and examine how different forms of competition with a manufacturer-owned channel impact distributor opportunism. Next, we consider how the same forms of competition impact the distributor’s end customers. Based on a multi-industry field study of industrial distributors, we highlight the complex processes that characterize dual distribution systems. We show that while competition with a manufacturer-owned channel increases distributor opportunism, it also has the potential to benefit the distributor’s end customers. In addition, although actions taken by a manufacturer to create vertical separation between channels limit competition, such actions also reduce end customer satisfaction.
Keywords
dual distribution, concurrent channels, forms of competition, distributors, channel outcomes, opportunism
Enable JavaScript for citation tools and additional paper interactions.