Handbook of Research on Distribution Channels
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Handbook of Research on Distribution Channels

Edited by Charles A. Ingene, James R. Brown and Rajiv P. Dant

Distribution channels are the most complex element of the marketing mix to fully grasp and to profitably manage. In this Handbook the authors present cutting-edge research on channel management and design from analytical, conceptual, and empirical perspectives. The breadth of this Handbook makes it appropriate for use in a doctoral course on distribution channels, or as a knowledge-broadening resource for faculty and researchers who wish to understand types of channels research that are outside the scope of their own approach to distribution.
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Chapter 2: Choosing value-chain locations in marketing channels: integrating service-dominant logic and product-form strategy perspectives

Mrinal Ghosh, Kellilynn M. Frias and Robert F. Lusch

Abstract

In this chapter the authors introduce a question of significant import to marketing managers: Where should their firm locate their offerings in the value chain? We term this concept as product-form strategies and using the service-dominant logic aver that the four principal product-form strategies, viz. sell intellectual know-how, sell intermediate components, sell final goods, or sell service solutions derived from the goods, are alternative ways in which firms can offer service to end-users. The authors first illustrate these product-form alternatives through a variety of examples and then draw on the literature in service-dominant logic and organizational economics to develop a framework that suggests the key underlying mechanisms that determine when and why firms choose one alternative product-form over another. Finally, the authors provide insights on how these choices impact marketing decisions throughout the value chain.

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