Transcription of K. Sudhir Sumon Datta Yale School of Management
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K. Sudhir Sumon Datta Yale School of Management
Pricing in Marketing Channels K. Sudhir Sumon Datta Yale School of Management We thank the editor Vithala Rao and Jiwoong Shin for comments and suggestions on the paper. Pricing in Marketing Channels Abstract This paper provides a critical review of research on pricing within a channel environment. We first describe the literature in terms of increasing time horizons of decision making in a channel setting: (1) retail pass-through (2) pricing contracts and (3) channel design; all of which occur within a given market environment. We then describe the emerging empirical literature on structural econometric models of channels and its use in (1) inferring channel participant behavior and (2) policy simulations in a channel setting. We also discuss potential areas for future research in each area. Pricing in Marketing Channels Price and channel are two of the four elements of the marketing mix that managers control, yet they differ fundamentally in how managers can use them to impact market demand.
2 2. Conditional on the distribution channel (which is fixed in the short run) and other market characteristics, what is the best pricing contract to offer to the downstream channel member?
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