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| Author: | Tsay, A. A. |
| Title: | Risk sensitivity in distribution channel partnerships: implications for manufacturer return policies |
| Journal: | Journal of Retailing
2002 : SUMMER, VOL. 78:2, p. 147-160 |
| Index terms: | Retailing Marketing channels Risk analysis Distribution channels |
| Freeterms: | Supply chain management Channels of distribution |
| Language: | eng |
| Abstract: | The manufacturer return policy is widely regarded as a means for channel partners to share risk. However, existing studies of this popular institutional practice use frameworks that assume risk-neutrality of all parties. The report analyzes how sensitivity to risk affects both sides of the manufacturer-retailer relationship under various scenarios of strategic power, and how these dynamics are latered by a return policy. A key finding is that the penalty for ignoring risk sensitivity can be substantial. |
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