Lingchen Huang, Ting Feng and Zongsheng Huang
Responding to the store brand (SB) introduction by the retailer, the manufacturer may adopt the strategic choice of incorporating the fairness concern behavior of the retailer…
Abstract
Purpose
Responding to the store brand (SB) introduction by the retailer, the manufacturer may adopt the strategic choice of incorporating the fairness concern behavior of the retailer. This paper aims to examine how the manufacturer can counteract the retailer’s SB introduction by strategically choosing to or not to incorporating the retailer’s fairness concern.
Design/methodology/approach
This paper considers the SB introduction problem in a two-echelon supply chain consisting of one manufacturer and one retailer with fairness concern behavior. This paper resolves the pricing strategies under four strategic scenarios regarding fairness concern incorporation and SB introduction and examine the influences from the fairness concern on pricing strategies and profits. This paper further investigates the strategic choice equilibrium of the manufacturer and retailer on fairness concern and SB introduction decision.
Findings
The results show that the retailer can be better off by the introduction of the SB only when the acceptance degree of the SB is high enough. And whether the manufacturer should incorporate the retailer's fairness concern depends on the consumer's acceptance of the SB: Only when the consumer's acceptance is moderate, the manufacturer is able to counteract the SB by strategically not incorporating the retailer’s fairness concern behavior. Otherwise, the manufacturer cannot prevent the retailer from introducing the SB and can be better off by incorporating the retailer’s fairness concern behavior.
Originality/value
This paper contributes to the literature by examining whether the manufacturer can adopt the strategic incorporation of the retailer's fairness concern to counteract the retailer's SB introduction.
Details
Keywords
Bin Liu, Jing Sun and Zongsheng Huang
We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.
Abstract
Purpose
We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.
Design/methodology/approach
We construct a supply chain model with a retail platform as the leader and manufacturers as the followers. Manufacturers face differential consumer preferences on the same agency retail platform, and they can sell a bundled extended service product and sell a separate product without any extended service.
Findings
The sale of extended warranty services on the retail platform leads to lower pricing of the manufacturers' products and changes in the product market structure in response to differences in consumer preferences. The retailing platform tends to provide an extended warranty conditionally. The sale of extended warranty services on a retail platform would be detrimental to the interests of the manufacturer who sells products with extended warranty services and in favor of the manufacturer who sells products without them.
Originality/value
The equilibrium results of the retail platform’s non-sales and sales of extended warranty services for the no-extended warranty product under the same commission rate and differential commission rate models are discussed, and the product structure of the market is investigated, respectively.
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Keywords
Marta Pérez-Pérez, Ana-María Serrano-Bedia and María-Concepción López-Fernández
The purpose of this paper is to empirically test a research model exploring the complex links between internal and external manufacturing flexibility capabilities (IF and EF) and…
Abstract
Purpose
The purpose of this paper is to empirically test a research model exploring the complex links between internal and external manufacturing flexibility capabilities (IF and EF) and competitive advantage (CA).
Design/methodology/approach
A survey approach with responses from 266 Spanish manufacturing firms from different industries was used. Structural equation modelling and SPSS macro PROCESS were used to test the hypotheses.
Findings
Manufacturing flexibility (MF) is a dual-dimensional concept composed by IF and EF, which are complementary and hierarchical in its development. Contrary to previous assumptions, IF does not always express its final competitive effect through EF, which only partially mediates the IF–CA relationship. Thus, IF and EF independently can positively enhance a firm's CA, being the direct effect of the IF being stronger than EF.
Practical implications
This study offers practical insights supporting a guide for prioritising flexibility capabilities through the holistic MF implementation, thus assisting managers wishing to formulate MF strategies seeking efficiency and customer value advantages relative to competitors.
Originality/value
The main novelty of this work is to explore for the first time the direct and indirect role of IF on CA, enlarging the assumptions of the flexibility funnel framework (FFF) and the strategic view of MF. The study is also unique due to both the depth and breadth of the investigation of the basis of the use of resource-based theory (RBT) and by employing a recent and comprehensive MF conceptual systematisation to guide the measurement approach.