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 16: A transaction cost approach to channel design with application to multichannels settings

George John, Madhu Viswanathan and Mrinal Ghosh

Abstract

In this chapter, the authors unpack the use of multiple channels to market a given product or service from the manufacturer’s point of view. They briefly review transaction cost logic regarding safeguarding specific investments, promoting adaptation, and mitigating the under-supply of activities lacking good output measures as the drivers of governance forms in a channel. Then, they develop and extend this logic to incorporate three key forms of heterogeneity – namely, firm, outlet, and customer pathways as well as synergies between different governance forms.

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