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| Author: | Zhao, X. Niu, R.H. Castillo, I. |
| Title: | Selecting distribution channel strategies for non-profit organizations |
| Journal: | European Journal of Marketing
2010 : VOL. 44:7/8, p. 972-996 |
| Index terms: | non-profit organizations distribution channels supply chain management markets USA optimization |
| Language: | eng |
| Abstract: | Non-profit organizations need to find an effective distribution channel strategy in order to reach their customers. The article discusses two options for this strategy in a non-profit organization: integrated channel, where the products are distributed by the non-profit organization itself and decentralized channel where the products are distributed through for-profit retailers. The authors aim to answer the question which one of these strategies is optimal in different market conditions. The question is addressed by constructing and solving quantity maximizing problems both in the case of monopoly setting and duopoly setting with integrated channel, decentralized channel and dual-channel strategy. The findings suggest i. a. that the selection of channel strategy in a non-profit organization depends on its cost structure and the level of substitutability of the products offered by the channels. |
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