Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/28294
Title: Competition between manufacturer's online customization channel and conventional retailer
Authors: Li, G
Huang, F
Cheng, TCE 
Ji, P 
Keywords: Competition
Customization level
Mass customization
Supply chain
Issue Date: 2015
Publisher: Institute of Electrical and Electronics Engineers
Source: IEEE transactions on engineering management, 2015, v. 62, no. 2, 7066882, p. 150-157 How to cite?
Journal: IEEE transactions on engineering management 
Abstract: Many manufacturers engaging in direct sales online face channel competition and conflict with traditional retailers. This paper studies a two-staged supply chain composed of a manufacturer, a retailer, and consumers with different aesthetic preferences. The manufacturer distributes a standard product via the conventional retailer. In addition, it offers a spectrum of customized products directly online. Modeling the firms' decisions on offering customization, we study their dependence on consumers' acceptance level of the online channel and consumers' fix cost. We obtain the following key findings. First, with the manufacturer offering customized products online, the Pareto improvement zone, in which both the manufacturer's and retailer's profits are improved because of alleviated vertical competition and an enlarged market, exists only under certain circumstances, and it depends on consumers' acceptance level of the online channel and their fit cost. Second, the manufacturer's offering customized products online does not necessarily lead to a reduction in the retail price. Third, the manufacturer is more aggressive in engaging in direct sales in a decentralized supply chain than in an integrated one, because it is less interested in alleviating horizontal competition (i.e., the competition between the standard and the customized products) in the decentralized setting.
URI: http://hdl.handle.net/10397/28294
ISSN: 0018-9391 (print)
1558-0040 (online)
DOI: 10.1109/TEM.2015.2406913
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

1
Citations as of Apr 4, 2017

WEB OF SCIENCETM
Citations

3
Last Week
0
Last month
0
Citations as of Apr 21, 2017

Page view(s)

52
Last Week
3
Last month
Checked on Apr 23, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.