Retail Channel Structure Impact on Strategic Engineering Product Design

• Published in: Management science Vol. 57; no. 5; pp. 897 - 914
• Main Authors: Williams, Nathan, Kannan, P. K., Azarm, Shapour
• Format: Journal Article
• Language: English
• Published: Hanover, MD INFORMS 01.05.2011; Institute for Operations Research and the Management Sciences
• Series: Management Science
• Subjects: Applied sciences; Competition; Customers; Design; Design engineering; Design specifications; Duopolies; Duopoly; Economics; Empirical research; engineering design; Equipment design; Exact sciences and technology; Firm modelling; Game theory; General aspects; genetic algorithms; Hypotheses; Impact analysis; Industrial design; Interdisciplinary aspects; latent class models; Management; Market shares; Market strategy; Marketing; Monopolies; Monopoly; new product design; Operational research and scientific management; Operational research. Management science; Operations management; Power tools; Product design; Product development; Profit; Profitability; Profits; R&D; Research & development; research and development; retail channels; Retail industry; Retail prices; Retail stores; Retail trade; Retailing industry; structural models; Studies; United States; Conditional distribution; Targeting; latent class models; Modeling; Optimization; Research and development; Marketing; Optimal design; retail channels; structural models; Pricing; Profit; Supplier; Oligopoly; new product design; New product; Consumer products; Retail marketing; genetic algorithms; Game theory; Monopole; Engineering design; Genetic algorithm; Preference; Structural model

We examine, in a strategic setting, the broad issue of how retail channel structures-retail monopoly versus retail duopoly-impact a manufacturer's optimal new product design, both in terms of engineering design specifications as well as manufacturer and retailer profits. Our strategic framework...