Review Product Distribution Through Different Channels

Review Product Distribution Through Different Channels

Zhaoqiong Qin
Copyright: © 2021 |Pages: 4
DOI: 10.4018/IJKBO.2021100103
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Abstract

This study aims to investigate the literature in product distribution and channel competition. In this study, past work related to the product distribution through different channels is extensively reviewed. Based on the channel differentiation, channel competition is also reviewed. Finally, the study proposes that the future research may focus on helping the producer make a decision whether to sell the product through its own direct channel (online) through a physical channel or both based on the difference between these two channels.
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2. Literature

Supply chain structures have attracted much attention in the academic community and industry practices. The past research has focused on three main streams. The first one is related to the difference between online and brick-mortar retailing sales into the model, which is widely discussed in the literature. The seminal work mainly embodies the main differences in the following aspects: 1) online sales require longer delivery times, which leads to consumers occurring additional costs (Hess, Gerstner and Chu 1996; Mehra, Kumar and Raju 2017). This is true. For example, the lead time to receive the order from Amazon or Ebay ranges from one day to seven days or longer while it only takes a few hours to purchase from local retailing store. 2) Brick-mortar retail sales are more convenient (Liang and Huang 1998). And 3) there is less consumer acceptance of the product value through online purchases (Kacen, Hess and Chiang 2013; Chiang, Chhajed and Hess 2003; Qin and Mambula 2018, Qin, Chiang and Russell, 2021). The less acceptance is mainly reflected by the fact that consumers can not see real products before purchasing them online.

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