publication . Article . 2008

Assessing the Consequences of a Channel Switch

Xinlei Jack Chen; George John; Om Narasimhan;
Open Access
  • Published: 08 Apr 2008 Journal: Marketing Science, volume 27, issue 3 05-06, pages 398-416
Abstract
Switching marketing channels is an expensive and sticky decision. While a number of theories suggest efficiency and strategic differences between channels, there is virtually no work on combining these ideas into an empirically workable methodology to assess the impact of a channel switch. In this study, we undertake to close this gap with an empirical study of the sports drink market, featuring competing producers and heterogeneous channels. We estimate demand and cost parameters for a number of alternative models of competitive interaction and use these estimates to study the switching of Gatorade from its extant (independent wholesaler) channel to the direct ...
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Subjects
free text keywords: channel structure, new empirical industrial organization, oligopoly competition, Direct store delivery, Competitive interaction, Extant taxon, Empirical research, Industrial organization, Communication channel, Manufacturing cost, Economics
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