Price formation in channels of distribution with differentiated products: theory and empirical evidence

Article Abstract:

Price development in markets where goods are distinguished by perceived quality of each kind, and service offered by the store where the good is being marketed was investigated theoretically and experimentally. Price competition in the vertically distinguished market was considered as a two-part game where manufacturers select the contract that sets wholesale prices and retailers set consumer prices. Competition between brands of different quality in the same store, and competition between brands of the same quality in various stores were also examined.

Distribution Channels, Pricing Policy, Research, Pricing, Markets (Economics), Product differentiation

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Network marketing organizations: compensation plans, retail network growth, and profitability

Article Abstract:

A dynamic decision model for the development of a retail network marketing organization (NMO) was developed and studied. NMOs are retail selling channels that utilize independent distributors not only to buy and resell products but also to enlist other distributors to provide a growing network over time. The model indicates that an NMO's network growth, distributor performance and network profitability are dependent on dissimilarities in compensation and other underlying market factors.

Marketing Management, Selling, Multilevel marketing

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