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A potential win-win-win strategy when pruning the direct channel: Motivating retailers to migrate to a designated intermediary.

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Title: A potential win-win-win strategy when pruning the direct channel: Motivating retailers to migrate to a designated intermediary.
Authors: Anand, Divya (AUTHOR), Crecelius, Andrew T. (AUTHOR), Lawrence, Justin M. (AUTHOR), Scheer, Lisa K. (AUTHOR)
Source: Journal of Retailing. Apr2025, Vol. 101 Issue 1, p25-39. 15p.
Subjects: Supply chain disruptions, Consumers, Manufacturing industries, Retail industry, Dividends
Abstract: Many retailers prefer to directly purchase from manufacturers, yet cost concerns motivate manufacturers to periodically prune their channels by cutting off direct customers or nudging them towards intermediaries. One frequent divestment strategy is involuntary intermediation wherein the manufacturer eliminates a retailer's option to purchase directly, while steering it toward a designated intermediary. Using enactment theory from supply chain disruption literature, this research examines this strategy and customers' subsequent decisions when facing involuntary intermediation, specifically: (1) whether or not to migrate as suggested by the manufacturer and (2) for customers that choose to migrate, how much to purchase subsequently from the intermediary, including both the manufacturer's products and other brands. Analyzing unique data provided by both a manufacturer and its designated intermediary, the authors find that although only 80 % of the customers migrated, usually all parties—the migrating customers, the manufacturer, and the intermediary—benefitted from the changes. Interestingly, purchasing increased most among the types of customers least likely to migrate, indicating that resources devoted to persuading such customers are worthwhile and can pay high dividends for both manufacturer and intermediary. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Retailing is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Psychology and Behavioral Sciences Collection
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DbLabel: Psychology and Behavioral Sciences Collection
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PubType: Academic Journal
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  Data: A potential win-win-win strategy when pruning the direct channel: Motivating retailers to migrate to a designated intermediary.
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  Data: <searchLink fieldCode="AR" term="%22Anand%2C+Divya%22">Anand, Divya</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Crecelius%2C+Andrew+T%2E%22">Crecelius, Andrew T.</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Lawrence%2C+Justin+M%2E%22">Lawrence, Justin M.</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Scheer%2C+Lisa+K%2E%22">Scheer, Lisa K.</searchLink> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Retailing%22">Journal of Retailing</searchLink>. Apr2025, Vol. 101 Issue 1, p25-39. 15p.
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  Data: <searchLink fieldCode="DE" term="%22Supply+chain+disruptions%22">Supply chain disruptions</searchLink><br /><searchLink fieldCode="DE" term="%22Consumers%22">Consumers</searchLink><br /><searchLink fieldCode="DE" term="%22Manufacturing+industries%22">Manufacturing industries</searchLink><br /><searchLink fieldCode="DE" term="%22Retail+industry%22">Retail industry</searchLink><br /><searchLink fieldCode="DE" term="%22Dividends%22">Dividends</searchLink>
– Name: Abstract
  Label: Abstract
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  Data: Many retailers prefer to directly purchase from manufacturers, yet cost concerns motivate manufacturers to periodically prune their channels by cutting off direct customers or nudging them towards intermediaries. One frequent divestment strategy is involuntary intermediation wherein the manufacturer eliminates a retailer's option to purchase directly, while steering it toward a designated intermediary. Using enactment theory from supply chain disruption literature, this research examines this strategy and customers' subsequent decisions when facing involuntary intermediation, specifically: (1) whether or not to migrate as suggested by the manufacturer and (2) for customers that choose to migrate, how much to purchase subsequently from the intermediary, including both the manufacturer's products and other brands. Analyzing unique data provided by both a manufacturer and its designated intermediary, the authors find that although only 80 % of the customers migrated, usually all parties—the migrating customers, the manufacturer, and the intermediary—benefitted from the changes. Interestingly, purchasing increased most among the types of customers least likely to migrate, indicating that resources devoted to persuading such customers are worthwhile and can pay high dividends for both manufacturer and intermediary. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Journal of Retailing is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=pbh&AN=183812073
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      – Type: doi
        Value: 10.1016/j.jretai.2024.11.002
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      – Code: eng
        Text: English
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        PageCount: 15
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      – SubjectFull: Supply chain disruptions
        Type: general
      – SubjectFull: Consumers
        Type: general
      – SubjectFull: Manufacturing industries
        Type: general
      – SubjectFull: Retail industry
        Type: general
      – SubjectFull: Dividends
        Type: general
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      – TitleFull: A potential win-win-win strategy when pruning the direct channel: Motivating retailers to migrate to a designated intermediary.
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            NameFull: Lawrence, Justin M.
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            – D: 01
              M: 04
              Text: Apr2025
              Type: published
              Y: 2025
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