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題名 Channel Design and OEM Growth in a Multi-market Setup
作者 李曉惠
Lee, Hsiao-Hui
Chang, Tingkai
Jean, Kevin
Kuo, Chia-Wei
貢獻者 資管系
關鍵詞 Supply chain management ; Channel of distribution ; Incentives and contracting ; Market expansion
日期 2022-02
上傳時間 2022-01-06
摘要 We study how to design an original equipment manufacturer’s (OEM’s) direct selling channel in a multi-market setup such that the OEM experiences sustained business growth without sacrificing its brand customers’ profits. In this paper, we consider an OEM producing for a brand customer that operates in two markets: the domestic market in which the OEM resides and the international market (i.e., other mature markets). The OEM can offer its brand customers at a discount price in exchange for using the excess capacity to produce products under the OEM’s own brand and then sell these products through its channel. We build a game theoretical model in a Stackelberg setting in which the OEM is the leader and the brand is the follower, and determine their optimal pricing decisions and the associate profits under two different dual channel settings (i.e., one in which the brand cannot flexibly change its retail price and one in which it can). Contrary to the first-order intuition of market cannibalization, we find that the OEM direct selling channel can be a win-win-win strategy for the brand (gaining higher profit margin in the international market), the OEM (gaining a higher market coverage in the domestic market), and consumers in the domestic market (buying the product at a cheaper price). Such insights are generally robust, even when we consider a cost for the OEM’s selling channel, and/or consider a price constraint enforced by the brand, such that the OEM avoids selling the same product at too low a price.
關聯 European Journal of Operational Research, Volume 296, Issue 3, 1 February 2022, Pages 862-872
資料類型 article
DOI https://doi.org/10.1016/j.ejor.2021.04.013
dc.contributor 資管系
dc.creator (作者) 李曉惠
dc.creator (作者) Lee, Hsiao-Hui
dc.creator (作者) Chang, Tingkai
dc.creator (作者) Jean, Kevin
dc.creator (作者) Kuo, Chia-Wei
dc.date (日期) 2022-02
dc.date.accessioned 2022-01-06-
dc.date.available 2022-01-06-
dc.date.issued (上傳時間) 2022-01-06-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/138627-
dc.description.abstract (摘要) We study how to design an original equipment manufacturer’s (OEM’s) direct selling channel in a multi-market setup such that the OEM experiences sustained business growth without sacrificing its brand customers’ profits. In this paper, we consider an OEM producing for a brand customer that operates in two markets: the domestic market in which the OEM resides and the international market (i.e., other mature markets). The OEM can offer its brand customers at a discount price in exchange for using the excess capacity to produce products under the OEM’s own brand and then sell these products through its channel. We build a game theoretical model in a Stackelberg setting in which the OEM is the leader and the brand is the follower, and determine their optimal pricing decisions and the associate profits under two different dual channel settings (i.e., one in which the brand cannot flexibly change its retail price and one in which it can). Contrary to the first-order intuition of market cannibalization, we find that the OEM direct selling channel can be a win-win-win strategy for the brand (gaining higher profit margin in the international market), the OEM (gaining a higher market coverage in the domestic market), and consumers in the domestic market (buying the product at a cheaper price). Such insights are generally robust, even when we consider a cost for the OEM’s selling channel, and/or consider a price constraint enforced by the brand, such that the OEM avoids selling the same product at too low a price.
dc.format.extent 728421 bytes-
dc.format.mimetype application/pdf-
dc.relation (關聯) European Journal of Operational Research, Volume 296, Issue 3, 1 February 2022, Pages 862-872
dc.subject (關鍵詞) Supply chain management ; Channel of distribution ; Incentives and contracting ; Market expansion
dc.title (題名) Channel Design and OEM Growth in a Multi-market Setup
dc.type (資料類型) article
dc.identifier.doi (DOI) 10.1016/j.ejor.2021.04.013
dc.doi.uri (DOI) https://doi.org/10.1016/j.ejor.2021.04.013