Implications of Channel Structure and Operational Mode Upon a Manufacturer's Durability Choice

• 成果类型: Article
• 署名作者: Bhaskaran, Sreekumar R.; Gilbert, Stephen M.
• 署名单位: Southern Methodist University; University of Texas System; University of Texas Austin
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.12335
• 发表日期: 2015
• 页码: 1071-1085
• 关键词: Durable goods; channel structure; COMPETITION; Product life cycle

摘要

Motivated by the observation that durability ratings of automobile manufacturers are not necessarily linked to the proportion of leasing but tend to decrease with the density of their dealer networks, we explore the interactions between channel structure (direct interaction with consumers vs. through an intermediary(ies)) and mode of operations (leasing vs. selling) and their implications for a manufacturer's willingness to invest in making her product more durable. Using a manufacturer who leases her product directly to consumers as a point of reference, we find that an isolated change in either the channel structure (selling through an intermediary), or the operational mode (leasing to selling) can decrease the manufacturer's willingness to provide durability. However, if combined, these two changes together may strengthen the manufacturer's willingness to invest in durability. Specifically, the traditional result that a manufacturer who leases provides more durability than one who sells, can be reversed in a decentralized channel.