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Author: | Shaffer, G. Zettelmeyer, F. |
Title: | When good news about your rival is good for you: The effect of third-party information on the division of channel profits |
Journal: | Marketing Science
2002 : SUMMER, VOL. 21:3, p. 273-293 |
Index terms: | Marketing Competition Corporate planning Knowledge management Profit Models USA |
Freeterms: | Information dissemination |
Language: | eng |
Abstract: | This paper presents an analysis of how the provision of third-party information affects the division of profits in a multi-product distribution channel. The main result is that when a third-party information affects consumers' product valuations, the type of information that induces the change is critical to understanding which firms gain and which firms lose. Particularly it is found that depending in the type of third-party information: 1. a retailer can be harmed by good news about a product it carries, 2. a manufacturer can gain from good news about a rivals product, and 3. good news about a product category need not benefit all the manufacturers in that category. |
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