Channel Conflict Research Articles

Impact of commitment misperception on channel conflict

PurposeThis paper aims to evaluate the effect of commitment misperception on channel conflict. It highlights the importance of trust and transaction-specific investments for business marketing strategies.Design/methodology/approachThis paper develops a concept framework to understand how the direction (overestimated vs underestimated) and extent of commitment misperception influence channel conflict. The model is tested using dyadic data from 212 distributors and manufacturers across several industries in China.FindingsThe results show that the direction of commitment misperception affects trust, transaction-specific investments and channel conflict. Overestimated commitment induces positive illusion and enhances trust and transaction-specific investments and reduces channel conflict, whereas underestimated commitment induces negative illusion and reduces trust and transaction-specific investments and enhances channel conflict. Trust and transaction-specific investments mediate the impact of the direction of commitment misperception on channel conflict. The extent of commitment misperception plays the moderating influence on the direction of commitment misperception.Originality/valueThis study reveals the mechanisms and boundary conditions by exploring the mediating influence of trust and transaction-specific investments and the moderating effects of the extent of commitment misperception.

Channel diversity, constructive and destructive conflicts: the moderating role of network centrality

PurposeThis study aims to investigate the impact of channel diversity on constructive and destructive conflicts in manufacturer-distributor relationships, as well as the mediating role of distributor opportunism and the moderating role of distributor network centrality.Design/methodology/approachThis paper collected channel dual data to represent channel behavior in manufacturer-distributor relationships accurately. Using 208 matched manufacturer distributor bilateral data from Chinese B2B firms validate the conceptual model. This paper tested the proposed hypothesis using AMOS 24.0 software.FindingsChannel diversity strengthens constructive conflict and weakens destructive conflict between manufacturers and distributors. Distributor opportunism plays a mediating role between channel diversity and constructive conflict. Distributor network centrality reinforces the positive impact of channel diversity on constructive conflict and the impact of channel diversity on destructive conflict.Originality/valueThis research contributes significantly to developing channel diversity and conflict theory by expanding the dyadic view to a network view. It also provides valuable insights for managers, highlighting the importance of maintaining a good relationship with distributors with high network centrality. The research results allow the constructive aspects of channel conflict to manifest fully and enhance the effectiveness of channel management. Distributor firms should prioritize communication and contact with network members to increase their network centrality, enabling them to take more initiative, exert influence and establish advantageous cooperative partnerships with manufacturers.

Revisiting e-commerce platforms’ strategies of exercising channel power: a contingency perspective

PurposeThe integration of e-commerce platforms and artificial intelligence (AI) into the marketing channel ecosystem is challenging the explanatory capacity of traditional channel power theories, indicating a significant yet unaddressed research gap concerning the impact of these digital entities and AI on channel power exercise dynamics. This study adopts a contingency perspective to critically revisit how e-commerce platforms exercise channel power and the ensuing effects on channel conflicts. The purpose of this study is to extend the boundaries of traditional channel power theories, enhancing their relevance in today’s digital marketplace.Design/methodology/approachBuilding on channel power theories, the authors developed a framework tested with survey data collected from 262 sellers. This framework incorporates three key contingent variables: inter-platform competition, AI capabilities and platform value co-creation. Regression analysis was used to perform the analyses.FindingsThis study finds that intense inter-platform competition mitigates the (positive) negative relationship between platform channel power and the exercise of (non-) coercive power. Moreover, a platform’s AI capabilities and value co-creation activities diminish the potential for channel conflicts induced by the exercise of coercive power. AI capabilities can also strengthen the negative relationship between the exercise of non-coercive power and channel conflicts.Originality/valueThis study contributes to the advancement of traditional channel power theories by integrating contemporary digital elements like AI and platform dynamics. This study provides theoretical and practical insights on navigating channel power in modern marketing environments, offering strategic guidelines for optimizing channel relationships.

The Impact of Monitoring on Reseller Slackness: The Mediating Role of Channel Conflict

ABSTRACT Purpose The purpose of this study is to examine how monitoring influences reseller slackness. We try to answer the following: (1) How do monitoring (behavior monitoring and output monitoring affect reseller slackness? (2) What is the mechanism by which monitoring affects reseller slackness? Methodology/approach The study proposed a theoretical framework using behavior monitoring, output monitoring, and channel conflict as the antecedents, as well as reseller slackness as a consequence. To validate the model, we collected data from resellers across multiple industries in China and analyzed data from 222 valid responses using multiple regression methods. Findings Supplier behavior monitoring decreases reseller slackness, whereas supplier output monitoring increases it. In addition, channel conflict mediates the impact of monitoring on reseller slackness. Research implications Based on the expectation that the partnership will grow in the long term, both partners should minimize channel conflict, and resellers need to curb their slack behavior. While output monitoring can give resellers more freedom to make decisions, this study shows that output monitoring can exacerbate inter-firm conflict and promote reseller slackness. Therefore, managers should be cautious about using output monitoring strategies for reseller slackness management. Practical implications Our findings suggest that behavior monitoring can mitigate channel conflict and reduce reseller slackness. However, output monitoring can facilitate channel conflict, promoting reseller slackness. As a result of these findings, suppliers can better manage reseller slackness by understanding the effects of different types of monitoring. Originality/value This study makes two contributions to existing literature. Firstly, it empirically examines the role of behavior and output monitoring on reseller slackness, thus enriching the existing literature on reseller slackness. Secondly, it further clarifies the specific pathways through which monitoring affects reseller slackness and lays the foundation for future research on managing it.

Pricing strategy research in the dual-channel pharmaceutical supply chain considering service.

In the context of developing a new era, the pharmaceutical supply chain market has gradually transformed from a seller's market to a buyer's market. The closer the consumers are, the greater the market pricing power, so the pharmaceutical market power of manufacturers and retailers has also changed. This study considers the effect of service on the pricing strategy of the pharmaceutical platform supply chain. The study aimed to coordinate optimization, and the coordination strategy of the pharmaceutical platform supply chain of complementary products is discussed mainly by researching the price and service factors. Various situations are studied by hypothesis and model solving. This study uses Stackelberg game decision-making. Manufacturers are at the forefront of platform supply chain decisions. The research found that the price was lower under centralized decision-making than under decentralized decision-making. Coordination between price and service levels needs attention in the pharmaceutical platform supply chain of complementary products, and the service level should be controlled within a certain range. Only by improving the service level can enterprises maximize profits, providing a theoretical basis for pharmaceutical supply chain pricing strategy research. Supply chain members must strive to improve service levels to improve medical supply consumers' (patients) psychological satisfaction level. Service levels do not fully mitigate channel conflict. Therefore, pharmaceutical complements have become a way to alleviate the conflicts in the pharmaceutical platform supply chain.

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

PurposeThe paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism.Design/methodology/approachTo deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism.FindingsThe results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee.Originality/valueThe proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.

Managing a sustainable dual-channel supply chain for fresh agricultural products using blockchain technology

The use of blockchain technology in the supply chain for fresh agricultural products (FAP) is becoming an issue for decision-makers who want to improve control and performance. Blockchain can give consumers real information about a product, which is good for building trust in a brand. However, its profits and associated costs must be well-adjusted when executing blockchain solutions. This study looks at a two-step FAP supply chain with only one retailer and one producer. The FAP is produced and processed by the manufacturer, who then supplies it to the retailer. The manufacturer simultaneously operates an online/e-tail channel to sell its product. The company gives consumers the right certificates using sustainable organic production and green packaging. End consumers' demand is based on the retail price, the e-tail price, how fresh the product is, how long it takes to check the quality level, and how real the green certificates are. Two models of decentralized decision-making are created to investigate the execution criteria of blockchain technology. A centralized decision-making model with blockchain technology is also being developed to get the best channel performance. We use subgame-perfect equilibrium to resolve channel conflict and for coordination. Then, extended alternative offer bargaining is suggested as a way for the retailer and the manufacturer to decide how to split the extra money. Finally, a numerical example depicted that although blockchain technology benefits the supply chain members, consumers have to pay more to get the service. It is also found that if a firm can form and maintain a trustworthy atmosphere for its FAP then it may continue its business without implementing the blockchain.

Wireless sensor network security defense strategy based on Bayesian reputation evaluation model

AbstractIn order to solve the security problems caused by malicious nodes in wireless sensor networks, a TS‐BRS reputation model based on time series analysis is proposed in this paper. By using the time series analysis method, the matching analysis of two time series is carried out to reduce the interference of channel conflicts on the reputation evaluation model and improve the accuracy of model recognition. In order to improve the adaptability of the evaluation model, the adaptive maintenance function μ is introduced into the update of credit value, which aggravates the influence of node behaviour on credit value at the present stage. The simulation results show that the new reputation evaluation model can effectively improve the detection rate and detection speed of malicious nodes in the network. After the introduction of maintenance function, the reputation value of the captured malicious nodes in the network has a faster convergence speed.

Research on coordination of the NEV battery closed-loop supply chain considering CSR and fairness concerns in third-party recycling models

Due to the pressure of the ecological environment and government, it is incumbent for enterprises to undertake corporate social responsibility (CSR). However, during the recycling process, awareness of equity concerns due to the distribution of benefits among members has intensified, and it is crucial to resolve channel conflicts and design a reasonable cooperation model to recycle used power batteries. Therefore, this paper constructs a closed-loop supply chain composed of power battery manufacturer, retailer and third-party collector based on the consideration of cascade utilization, in order to study the impact of the level of CSR and the degree of fairness concern on the decision-making of channel participants. Our research shows that: (1) Fairness concern behavior adversely affects the supply chain, which raises the sales price and reduces the collecting rate and the utility of the supply chain as a whole. (2) Undertaking CSR is beneficial to the development of the power battery market, and also helps to reduce the sense of unfairness among third-party recycling companies. (3) The cost-sharing contract effectively coordinates the distribution of supply chain benefits and improves the recycling rate. Finally, we further verify the correctness of the conclusions through numerical studies.

Universal Heater Industries: managing conflict with a distributor

Learning outcomes This case study exposes students to conflicts with distributors, escalated scenarios of a trade association and the possible repercussions of such a scenario. Upon completion of this case study, the students will be able to understand the critical success factors for a distribution setup and alignment of channels for driving growth; understand and manage the power dynamics with a stakeholder, like trade associations, distribution reach, fallacies in managing the distributors and identifying the gaps; critically evaluate negotiation opportunities when a trade association is not directly related to the principal organization. Case overview/synopsis This case study showcased a conflict between the distributor and Universal Heater Industries (UHI), a leading player in the water heater business in India. In 2015, the global leadership of UHI identified India as an emerging market and undertook a complete management overhaul to implement a new growth plan. Several measures were put in place that leveraged the global product portfolio and new people were appointed to push the agenda. Manish Singhal, the national sales head of UHI, selected Kerala as the pilot state to implement the new plan. However, the projects failed, as the distributor escalated the treatment meted out by UHI to the Electrical Trade Association (ETA). Trade associations have had a history of playing truant with players like UHI, and because of this, business came to a complete halt. The UHI and ETA teams met once; however, the suggested closure by ETA needed to be aligned with UHI’s interests. Singhal’s dilemma deepened, and they had to decide the next steps. Complexity academic level This case study is suitable for a postgraduate marketing course in a segment on managing channels, intermediaries, distribution management and channel conflicts. The uniqueness of this case is in the dimension of the trade association and managing the stakeholders. Supplementary material Teaching notes are available for educators only. Subject code CSS8: Marketing.

Channel Conflict: The Impact of Fintech on Traditional Banking

Channel Conflict: The Impact of Fintech on Traditional Banking

Pricing decision making and coordination of a dual‐channel supply chain considering online reviews and channel preferences

AbstractMany problems regarding channel conflicts exist in the pricing process of a manufacturer‐led dual‐channel supply chain. By considering the fact that online reviews and channel preferences are the important factors that influence consumer purchasing behaviors and the decision‐making of the supply chain, this paper deals with these problems through the development of a model involving online reviews and channel preferences. It then analyzes optimal decisions under either decentralized or centralized decision‐making scenarios. The impact of online review service input and consumer channel preference on optimal supply chain decisions and profits is further analyzed. Finally, based on the developed model, a revenue sharing contract coordination scheme is designed to achieve Pareto improvements in the supply chain. The results show that the degree of consumer preference for online channels affects the best consumer decisions and the overall profit of the supply chain. The impact coefficient of online reviews is positively correlated with the manufacturer's direct selling price, the level of input to online review services, and the profit of the entire supply chain. The provision of online review services can significantly increase channel prices, market sales, and profits compared to channel preferences. The overall profit of the supply chain under centralized decision‐making is significantly greater than that under decentralized decision‐making, and the coordination model can effectively coordinate the supply chain and alleviate conflicts.

Prediction-based channel assignment for minimizing channel switching in mobile WBANs

As the world’s population rises, the healthcare system experiences significant changes. Wireless body area network (WBAN) is an emerging technology that has considerable impact on medical and non-medical applications. However, two crucial challenges in WBANs are interference minimization and channel assignment. High interference may increase collision probability, transmission delay, and energy consumption. Multichannel schemes are proposed to reduce the data transmission latency and improve the system throughput by allowing simultaneous transmission of sensors in coexisting WBANs. When WBAN users move, they need to switch the channels frequently to avoid potential channel conflicts and to maintain the Quality of Service (QoS). However, frequent switching may raise energy consumption and aggravate delay. Existing multichannel assignment schemes failed to perform well in highly dynamic and densely deployed WBANs environments. In contrast to existing studies, this paper proposes a Prediction-based Channel Assignment (PCA) algorithm that selects the channels for WBANs to remain valid for future time instances and thus minimizes the delay and number of channel switches for dynamic and coexisting WBANs. When a WBAN needs to switch a channel, the proposed method predicts the future neighbors of that WBAN based on its history. It explores the channel information of present and future neighbors to select a suitable channel with higher resilience in a dynamic environment. Thus, our algorithm minimizes channel interference by avoiding unnecessary channel switching. We have used machine learning algorithms to predict the future neighbors of a WBAN. Experiment results show that the proposed algorithm performs better than an existing algorithm and random channel assignment in delay and throughput.

Relational exchanges in the tourism distribution channels: An exploratory study on accommodation providers and tour operators

Distribution channel relationships are highly relevant in the tourism industry. The social exchange theory (SET) is a popular theoretical framework for exploring such inter-organizational relationships because it concerns economic and social interactions. However, the social exchange theory has rarely been applied to the tourism industry. The current study addresses this research gap and applies the social exchange theory in tourism. In-depth interviews were conducted with accommodation providers and tour operators in Japan to examine the dynamics of their relationships. Respondents confirmed the importance and difficulty of managing distribution channel relationships. Due to growing online platforms, traditional tour operators are losing channel power and accommodation providers depend less on them. Nevertheless, both sides highlighted the importance of commitment to maintain long-term healthy relationships. Apart from the theoretical contribution, this study also provides valuable managerial implications. It recommends that accommodation providers should develop a consistent multi-channel strategy and pricing strategy to avoid unnecessary channel conflicts with intermediaries. Traditional tour operators should innovate themselves in order not to be disintermediated, instead of relying on the old business model.

Quality differentiation and e‐tailer's choice between reselling and agency selling

AbstractMany manufacturers sell products through both the e‐retail and direct channels, which may lead to channel conflicts. To alleviate this, quality differentiation becomes an important marketing strategy for the manufacturer. However, few studies investigate how the form of the e‐tailer's selling contract affects the manufacturer's distribution strategy. Here, we investigate this by establishing a game model in which a manufacturer sells two products with similar functions, but different quality levels, through the direct channel and an e‐tailer. The manufacturer may distribute high‐ and low‐quality products through the direct and e‐tailer channels, respectively, or vice versa. The e‐tailer can choose either the reselling or agency selling contracts. We find that the impact of quality differentiation on equilibria depends on the distribution strategy, contract form, and level of product competition. Under the reselling contract, the manufacturer (he) should distribute high‐quality products directly if the relative efficiency of low‐ to high‐quality products is low. Under the agency selling contract, he should distribute low‐quality products directly if the relative efficiency is moderate. Finally, the e‐tailer (she) should choose the agency selling contract if the production cost is moderate, regardless of the manufacturer's distribution strategy.

On selling format choice and quality differentiation in dual‐channel supply chains

AbstractWhen suppliers sell products through a direct channel and an indirect channel, they usually differentiate the two channels by quality to alleviate channel conflicts. The quality choice for different channels poses a great challenge to the suppliers, which also bears implications for the online retailer's choice between the reselling format and the agency format. This paper uses a game‐theoretic model to investigate the interaction between the supplier's quality differentiation strategy and the online retailer's selling format choice in dual‐channel supply chains. Different from the previous literature, we endogenize the supplier's quality decisions and find that the supplier always chooses to sell the high‐quality product through the direct channel and sell the low‐quality product through the online retailer. Moreover, compared with the reselling format, the quality level of the low‐quality product is reduced but that of the high‐quality product is lightly increased under the agency format. The intuition is that the supplier tends to highlight the advantage of each channel to acquire more profit. Regardless of the supplier's choice, the online retailer always prefers the agency format. We further extend our model in several important directions, which lend robustness to our core insights.

Optimal Policy for Probabilistic Selling with Three-Way Revenue Sharing Contract under the Perspective of Sustainable Supply Chain

Probabilistic selling (PS) is widely used in the travel industry and marketing practices; how to design a win-win contract using PS in multiple participants’ supply chain to achieve sustainable development has been a worthy concerned issue in the green supply chain development in China. To end this, we consider a three-players supply chain involving two firms and a common retailer in which the firms sell their transparent products via a dual channel, while the retailer sells probabilistic goods by a direct channel. First, the three players’ demand functions are derived using both a Hotelling model and taking account of consumers’ price reference effects. Second, we construct a probabilistic selling model for both decentralized and centralized supply chain systems. The optimal policies for the decentralized system are determined by employing Stackelberg sequential games and an analytical approach. Third, we propose a new three-way revenue sharing contract to deal with channel conflict. Furthermore, we determine the conditions under which the dual-channel supply chain can be coordinated to achieve a win–win situation for all participants. The results indicate that the retailer adopts probabilistic selling depending upon the relative values of the two manufacturers’ production costs in the three-way revenue sharing contract. More interestingly, PS not only can improve the supply chain’s efficiency, but also can coordinate the dual-channel supply chain to achieve a win-win situation for all participants. Finally, we present a numerical analysis to verify our results and a sensitivity analysis of the parameters involved.

The role of blockchain technology in the dual-channel supply chain dominated by a brand owner

Counterfeit and low-quality products pose huge challenges to brand owners. Consumer trust in brands requires facilitation from product information disclosure. A traceability system enabled by blockchain technology (BCT) presents one of the most promising solutions to these issues and contributes to two effects: total market potential improvement (TMPI) effect and market share adjustment (MSA) effect. As an initial attempt to consider the impacts of BCT on market share, we focus on whether the powerful brand owner in a dual-channel supply chain should adopt BCT. Specifically, we consider two scenarios: without BCT adoption (Scenario N) and with BCT adoption (Scenario B). By modeling the two effects, this study investigates the impact of BCT on equilibrium strategies and the boundary conditions under which the brand owner is motivated to implement BCT. Our analysis indicates that the adoption of BCT is always beneficial to the retailer, which creates a “free-rider” problem. However, the brand owner does not always benefit from BCT adoption. The brand owner should adopt BCT when the MSA effect is small and the retailer's market share in Scenario B exceeds a certain threshold, even if there is no TMPI effect. Otherwise, it is wise for the brand owner to adopt BCT only when the TMPI effect is sufficiently large. Interestingly, we also find that the MSA effect plays a role in alleviating channel conflict and partially coordinating the dual-channel supply chain. The results provide managerial insights into whether brand owners should adopt BCT to improve product traceability.

When can a manufacturer benefit from adding a direct sharing channel?

With the rapid development of sharing economy, the manufacturer has begun to establish direct sharing channels in addition to their existing distribution channels via independent retailers. Motivated by this business practice, this paper aims to answer the following questions: whether and when should a manufacturer establish a direct sharing channel? To this end, we first analyze a supply chain where a manufacturer distributes her product only through a retailer (the M-S Model), where we obtain the optimal retail price. Next, we consider the scenario where the manufacturer sets up a direct sharing channel in addition to the retail channel (the MR-S Model), where we obtain the optimal rental price and retail price. We then study the manufacturer's channel structure choice between the M-S and the MR-S models. Our main findings include the followings. First, the manufacturer may not always benefit from establishing a new sharing channel. The manufacturer will benefit only if the operating cost of sharing channel is low. However, when the operating cost of sharing channel is below a threshold, adding the sharing channel will decrease the profit at the retail channel, resulting in channel conflict. Second, only if the operating cost of sharing channel falls into a certain interval, the manufacturer's sharing channel will decrease the retailer's profit but increase the total supply chain profit. To avoid channel conflict, the two firms can adopt an appropriate sales reward contract so that both can benefit from the sharing channel. Lastly, when both the operating cost of sharing channel and the simultaneous rental rate of consumers are low, the manufacturer even needs to produce less if she establishes a new sharing channel.

A Bottle of Wisdom, a Barrel of Prudence, and an Ocean of Patience: Vatican Mediation and the Beagle Channel Conflict

A Bottle of Wisdom, a Barrel of Prudence, and an Ocean of Patience: Vatican Mediation and the Beagle Channel Conflict