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Manufacturers and Dual Distribution

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Identify a product offered by a manufacturer using a dual-distribution approach. Are there differences between the customers targeted by each channel? How do the purchase experiences differ? In the end, why do you think a customer would buy directly from the manufacturer if the prices were higher?

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Solution Summary

THis detailed solution identifies a product offered by a manufacturer using a dual distribution approach, explains the difference targeted by each channel, how the purchase experiences differ, and why a customer would choose to buy directly from the manufacturer if the prices were higher. It includes examples.

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Nike offers dual distribution. A customer can buy products directly through the Nike website or at retailers like Nordstrom, Sport Chalet, or Macy's.

The difference is that customers looking at the Nike website(www.nike.com) are often looking specifically for Nike products. They have been happy with the quality, style, fit, or price in the past, know what to expect so they go directly to Nike to buy the product. Customers who are shopping at a department store or sport ...

Solution provided by:
Sally Baldwin, Ed.D
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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