Channel Pricing Decision Based on Manufacturer Forward Integration

Author

Fan, Xiaojun

Author_Institution

Sch. of Marketing & Logistics, Nanjing Univ. of Finance & Econ., Nanjing, China

fYear

2011

fDate

12-14 Aug. 2011

Firstpage

1

Lastpage

4

Abstract

Manufacturer forward integration is a common method to improve brand value and compete with independent retailer for manufacturer. Through the comparing analysis between channel pricing decisions under manufacturer forward integration mode and independent retailer mode. We find the following results. The wholesale price under manufacturer forward integration mode is higher than the corresponding wholesale price under independent retailer mode. The retail price in manufacturer-owned store under manufacturer forward integration mode is higher than the corresponding retail price under independent retailer mode. The independent retailer profit under manufacturer forward integration mode is lower than the corresponding profit under independent retailer mode. The profit of manufacturer who owns store under manufacturer forward integration mode is lower than the corresponding profit under independent retailer mode.

Keywords

pricing; profitability; retailing; brand value; channel pricing decision; independent retailer mode; independent retailer profit; manufacturer forward integration mode; manufacturer-owned store; Educational institutions; Industries; Lead; Logistics; Manufacturing; Marketing and sales; Pricing;

fLanguage

English

Publisher

ieee

Conference_Titel

Management and Service Science (MASS), 2011 International Conference on

Conference_Location

Wuhan

Print_ISBN

978-1-4244-6579-8

Type

conf

DOI

10.1109/ICMSS.2011.5998287

Filename

5998287