Edited by Emek Basker
This Handbook explores and critically examines current research in economics and marketing science on key economic issues in retailing and distribution. Providing a rich perspective for the discussion of public policy, contributions from several disciplines and continents range from the history of chains and the impact of multinational retailers on international trade patterns; to the US merger policy in the retail context, the rise of the Internet and consumer-to-consumer sales. This state-of-the-art Handbook is an essential reference for students and academics of economics and marketing science and offers outsiders valuable perspectives on operations research, data analytics, geography, and sociology.
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Chapter 6: Dominant retailers and their impact on marketing channels
This chapter explores the implications of dominant retailers for marketing channels – the system through which manufacturers distribute their products to consumers. The emergence of a few dominant retailers has altered the way in which members of the marketing channel make decisions. The chapter first presents an economic framework to explore the source of retail dominance. It then explores how several key decisions (for example, product quality and assortment, prices, market data collaboration, and advertising) taken within the marketing channel are affected by the dominance of certain retailers. Antitrust implications are also assessed.
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