Author
Akçura, Munir Tolga, Ozdemir, Z. D., Rahman, M. S.
Publication Date
2015-02
Publication Place
-
Wiley
Subject
Online intermediary, Internet reach, Distribution channels, Advance selling, Quality differentiation, Analytical model
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1540-5915
Record ID
7833d3cc-7ad4-420d-ba6d-4c629a1a0a8c
Library Location
Business Administration
Date
2015-02
Notes
Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Sample Text
When deciding whether to utilize an online intermediary in addition to their own distribution channels, quality differentiated service providers face the trade-off between the benefit of extended reach and the threat of increased competition. Using an analytical framework, we analyze when and how service providers may utilize an online intermediary to their advantage in the presence of advance selling (i.e., selling a service at an early date for future consumption). In general, when an online intermediary is used, the competition effect dominates the reach effect and leads to a falling price trend. Interestingly, we find that the negative effect of increased competition on profits, due to intermediary usage, can be reversed by committing to self-imposed participation limits (i.e., selling only a predetermined amount of services through the online intermediary). This ensures that the service provider is better off selling through both its own site and the online intermediary, rather than selling exclusively using either channel.
DOI
10.1111/deci.12116
Cilt
46
