Abstract It is well known that the optimal product line design in a manufacturer-retailer distribution channel is different from the optimal design achieved under a centralized channel. Channel inefficiencies are observed due to the potential misalignment of the manufacturer's and the retailer's segment targeting strategies. We show that this result in the literature is based on a crucial assumption that the product is comprised of only one attribute, and that one segment's preference structure dominates the other segment's preference structure. In this paper, we generalize the problem by considering a multiple-attribute product line design problem that includes the case of a non-dominating preference structure. Interestingly, we show that channel inefficiencies may become an issue in this non-dominating preference structure only when the market segments are significantly different in the overall part worth across the product attributes. We also show the potential of two important operations management concepts firms can use as an attempt to improve channel efficiency. Contrary to the predominant result in the literature on commonality in the centralized channel, we show that offering commonality in the decentralized channel may actually improve channel efficiency even in the absence of cost saving. Further, firms can benefit from the implementation of decentralized product design where the retailer also takes part in designing product attributes. The overall part worth difference between the two segments appears to have a strong influence on the change in channel profits. These findings give rise to previously unrecognized opportunities for firms to redesign their product lines.

中文翻译：

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减少产品线设计中的渠道低效率

摘要 众所周知，制造商-零售商分销渠道中的优化产品线设计不同于集中渠道下的优化设计。由于制造商和零售商的细分市场定位策略可能存在偏差，因此观察到渠道效率低下。我们表明，文献中的这一结果基于一个关键假设，即产品仅由一个属性组成，并且一个细分市场的偏好结构支配另一个细分市场的偏好结构。在本文中，我们通过考虑包含非支配偏好结构情况的多属性产品线设计问题来概括该问题。有趣的是，我们表明，只有当细分市场在产品属性的整体价值方面存在显着差异时，渠道效率低下才可能成为这种非支配性偏好结构中的一个问题。我们还展示了公司可以用来尝试提高渠道效率的两个重要运营管理概念的潜力。与集中式渠道中关于通用性的文献中的主要结果相反，我们表明，即使在不节省成本的情况下，在分散式渠道中提供通用性实际上也可以提高渠道效率。此外，公司可以从分散产品设计的实施中受益，其中零售商也参与设计产品属性。两个细分市场的整体价值差异似乎对渠道利润的变化有很大影响。这些发现为公司重新设计其产品线提供了以前未被认识到的机会。