Preface |
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xix | |
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1 | (39) |
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Marketing Channels: Structure and Functions |
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1 | (39) |
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What Is a Marketing Channel? |
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2 | (3) |
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Why Do Marketing Channels Exist and Change? |
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5 | (5) |
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6 | (1) |
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7 | (3) |
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What Is the Work of the Marketing Channel? |
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10 | (4) |
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Who Belongs to a Marketing Channel? |
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14 | (3) |
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14 | (1) |
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15 | (1) |
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16 | (1) |
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Channel Formats as Combinations of Channel Members |
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16 | (1) |
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A Framework for Channel Analysis |
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17 | (10) |
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Channel Design: Segmentation |
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17 | (2) |
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Channel Design: Channel Structure Decisions |
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19 | (2) |
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Channel Design: Splitting the Workload |
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21 | (1) |
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Channel Design: Degree of Commitment |
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22 | (1) |
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Channel Design: Gap Analysis |
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22 | (2) |
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Channel Implementation: Identifying Power Sources |
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24 | (1) |
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Channel Implementation: Identifying Channel Conflicts |
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24 | (1) |
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Channel Implementation: The Goal of Channel Coordination |
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25 | (1) |
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Channel Design and Implementation: Insights for Specific Channel Institutions |
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25 | (2) |
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27 | (1) |
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27 | (2) |
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29 | (1) |
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30 | (3) |
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Appendix 1A: Alternate Channel Formats |
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33 | (7) |
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Part II: Channel Design: Demand, Supply, and Channel Efficiency |
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40 | (156) |
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Segmentation for Marketing Channel Design: Service Outputs |
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40 | (32) |
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End-User Channel Preferences |
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41 | (2) |
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43 | (12) |
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Segmenting the Market by Service Output Demands |
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55 | (4) |
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Meeting Service Output Demands |
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59 | (2) |
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The Role of Service Output Demand Analysis in Marketing Channel Design |
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61 | (3) |
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64 | (1) |
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65 | (3) |
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Appendix 2A: The Service Output Demands Template |
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68 | (4) |
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Supply Side Channel Analysis: Channel Flows and Efficiency Analysis |
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72 | (40) |
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73 | (19) |
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Eight Generic Channel Flows |
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73 | (18) |
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Customizing the List of Flows for a Particular Channel |
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91 | (1) |
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Who Does Which Channel Flows? |
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92 | (1) |
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Describing the Current Channel with the Efficiency Template |
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92 | (6) |
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Using Channel Flow Concepts to Design a Zero-Based Channel |
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98 | (2) |
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Matching Normative and Actual Profit Shares: The Equity Principle |
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100 | (1) |
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Summary: Channel Flow Analysis as Part of the Overall Channel Audit Process |
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101 | (2) |
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103 | (1) |
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104 | (2) |
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Appendix 3A: The Efficiency Template |
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106 | (6) |
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Supply-Side Channel Analysis: Channel Structure and Intensity |
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112 | (42) |
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113 | (1) |
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Coverage versus Assortment: Framing the Decisions of Upstream and Downstream Channel Members |
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114 | (8) |
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Why More Coverage Is Better for Manufacturers of Convenience Goods |
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114 | (1) |
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Why Downstream Channel Members Dislike Intensive Distribution |
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115 | (4) |
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Can the Manufacturer Sustain Intensive Distribution? |
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119 | (1) |
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Degree of Category Exclusivity: The Downstream Channel Member's Decision |
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120 | (2) |
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Striking a Deal: How Much Selectivity to Trade Away |
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122 | (5) |
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The Threat of Complacency |
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122 | (1) |
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The Nature of the Product Category |
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122 | (2) |
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Brand Strategy: Quality Positioning and Premium Pricing |
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124 | (3) |
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Brand Strategy: Target Market |
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127 | (1) |
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Bargaining for Influence over Channel Members |
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127 | (10) |
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128 | (1) |
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Manufacturer-Specific Investments by Downstream Channel Members |
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129 | (2) |
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Dependence Balancing: Trading Territory Exclusivity for Category Exclusivity |
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131 | (3) |
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Reassurance: Using Selectivity to Stabilize Fragile Relationships |
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134 | (1) |
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The Price of the Concession: Factoring in Opportunity Cost |
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135 | (2) |
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Back to the Basics: Cutting Costs and Raising Sales |
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137 | (3) |
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Saving Money by Limiting the Number of Trading Partners |
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137 | (1) |
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Do More Trading Partners Really Mean More Revenue? |
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138 | (1) |
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A Caution on the Issue of Limiting the Number of Trading Partners |
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139 | (1) |
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Simulating the Benefits of Selectivity While Maintaining Intensive Coverage |
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140 | (1) |
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Going to Market via Multiple Types of Channels |
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141 | (3) |
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Dual Distribution: Going to Market via Independent Channels and Self-Owned Channels |
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144 | (1) |
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144 | (1) |
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The Demonstration Argument |
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144 | (1) |
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Carrier-Rider Relationships |
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145 | (1) |
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146 | (3) |
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149 | (1) |
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150 | (4) |
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154 | (42) |
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Sources and Types of Channel Gaps |
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155 | (25) |
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155 | (13) |
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Types of Gaps: Demand-Side Gaps |
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168 | (6) |
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Types of Gaps: Supply-Side Gaps |
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174 | (2) |
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176 | (4) |
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180 | (5) |
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180 | (3) |
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183 | (1) |
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Challenging Gaps Produced by Environmental or Managerial Bounds |
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184 | (1) |
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Pulling It Together: The Gap Analysis Template |
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185 | (7) |
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192 | (1) |
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192 | (4) |
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Part III: Channel Implementation |
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196 | (229) |
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Channel Power: Getting It, Using It, Keeping It |
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196 | (47) |
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196 | (4) |
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197 | (1) |
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198 | (1) |
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Why Marketing Channels Require Power |
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199 | (1) |
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Power as the Mirror Image of Dependence |
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200 | (4) |
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200 | (1) |
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Measuring Dependence Directly |
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201 | (2) |
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Measuring Dependence via Proxy Indicators |
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203 | (1) |
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The Greatest Source: Reward Power |
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204 | (5) |
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Four More Sources of Power |
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209 | (10) |
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209 | (1) |
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210 | (4) |
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214 | (2) |
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216 | (1) |
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Separating the Five Power Sources |
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216 | (2) |
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Putting It Together: What Is Power and How Do You Index It? |
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218 | (1) |
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219 | (7) |
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219 | (1) |
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Imbalanced Dependence: Is Exploitation Inevitable? |
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220 | (2) |
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Imbalanced Dependence: Countermeasures for the Weaker Party |
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222 | (2) |
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Tolerating Imbalanced Dependence: The Most Common Scenario |
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224 | (2) |
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Exercising Power: Influence Strategies |
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226 | (4) |
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227 | (1) |
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The Consequences of Each Strategy |
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228 | (1) |
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How to Frame an Influence Attempt |
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229 | (1) |
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230 | (8) |
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238 | (1) |
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238 | (5) |
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Managing Conflict to Increase Channel Coordination |
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243 | (46) |
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Assessing the Degree and Nature of Channel Conflict |
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244 | (3) |
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What Is Channel Conflict? |
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244 | (2) |
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246 | (1) |
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The Consequences of Conflict |
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247 | (4) |
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When Conflict Is Desirable |
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247 | (2) |
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How Intense Conflict Damages Channel Performance and Coordination |
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249 | (2) |
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Major Sources of Conflict in Marketing Channels |
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251 | (5) |
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251 | (1) |
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Differing Perceptions of Reality |
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252 | (4) |
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256 | (10) |
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256 | (1) |
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Multiple Channels: No Longer Unusual |
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257 | (2) |
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259 | (3) |
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262 | (1) |
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Unwanted Channels: Gray Markets |
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263 | (3) |
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266 | (5) |
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Conflict Begets More Conflict |
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266 | (1) |
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266 | (5) |
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Conflict Resolution Strategies: How They Drive Conflict and Shape Channel Performance |
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271 | (10) |
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Resolving Conflict: Institutionalized Mechanisms Designed to Contain Conflict Early |
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271 | (4) |
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Styles of Conflict Resolution: How Channel Members Handle Disputes and Negotiate to Achieve Their Goals |
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275 | (2) |
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Resolving Conflict and Achieving Coordination via Incentives |
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277 | (4) |
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281 | (3) |
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284 | (1) |
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285 | (4) |
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Strategic Alliances in Distribution |
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289 | (41) |
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Strategic Alliances: Their Nature and the Motives for Creating Them |
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290 | (9) |
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What Is a Strategic Distribution Alliance? |
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290 | (2) |
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Why Forge a Strategic Distribution Alliance? Upstream Motives |
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292 | (3) |
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Why Force a Strategic Distribution Alliance? Downstream Motives |
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295 | (2) |
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Do Alliances Outperform Ordinary Channels? |
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297 | (2) |
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Building Commitment by Creating Mutual Vulnerability |
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299 | (9) |
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The Minimum Requirement: Expectations of Continuity |
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299 | (1) |
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Why Commitment Is Nil Unless It Is Mutual |
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300 | (2) |
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How the Other Side Gauges Your Commitment |
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302 | (3) |
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Actions That Bind Distributors to Suppliers |
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305 | (1) |
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Actions That Bind Suppliers to Distributors |
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306 | (1) |
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Creating Alliances via Ties That Bind |
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306 | (2) |
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Building Commitment by the Management of Daily Interactions |
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308 | (8) |
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How Can Channel Members Manufacture Trust? |
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311 | (1) |
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The Fundamental Role of Economic Satisfaction |
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311 | (1) |
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Noneconomic Satisfaction Also Matters |
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312 | (2) |
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Picking the Partner and the Setting |
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314 | (2) |
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Decision Structures That Enhance Trust |
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316 | (1) |
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How Do You Manufacture Trust in a Channel? |
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317 | (1) |
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Moving a Transaction Through Stages of Development to Reach Alliance Status |
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317 | (6) |
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From Cradle to Grave: The Life of a Marketing Channel Partnership |
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317 | (3) |
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320 | (1) |
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Managing Troubled Relationships |
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321 | (1) |
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The Virtues of a Portfolio of Relationships |
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321 | (2) |
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Putting It All Together: What Does It Take and When Does It Pay to Create a Marketing Channel Alliance? |
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323 | (3) |
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326 | (1) |
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327 | (3) |
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Vertical Integration in Distribution |
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330 | (47) |
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330 | (3) |
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331 | (1) |
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Make or Buy: A Critical Determinant of Company Competencies |
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332 | (1) |
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332 | (1) |
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The Costs and Benefits of Vertical Integration in Marketing Channels |
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333 | (6) |
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Degrees of Vertical Integration |
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333 | (2) |
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Costs and Benefits of the Choice to Make |
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335 | (2) |
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The Choice to Buy Distribution: Terms of Payment to Third Parties |
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337 | (2) |
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Deciding When to Vertically Integrate Forward: An Economic Framework |
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339 | (7) |
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Return on Investment: The Usual Criterion |
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339 | (1) |
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Outsourcing as the Starting Point |
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340 | (1) |
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Six Reasons to Outsource Distribution |
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341 | (5) |
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Vertical Integration Forward When Competition Is Low |
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346 | (14) |
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Company-Specific Capabilities |
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346 | (4) |
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Six Types of Company-Specific Capabilities in Distribution |
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350 | (8) |
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Rarity versus Specificity: The Effects of Thin Markets |
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358 | (1) |
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Turning the Lens Around: Should the Channel Member Integrate Backward? |
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358 | (2) |
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Vertical Integration to Cope with Environmental Uncertainty |
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360 | (3) |
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Vertical Integration to Reduce Performance Ambiguity |
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363 | (2) |
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363 | (1) |
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Results Indicators That Are Inaccurate, Late, or Nonexistent |
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364 | (1) |
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Summary of the Decision Framework |
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365 | (2) |
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Vertical Integration as an Observatory on the Market or as an Option: Economic Rationality or Rationalization? |
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367 | (3) |
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370 | (3) |
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373 | (1) |
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374 | (3) |
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Legal Constraints on Marketing Channel Policies |
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377 | (48) |
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378 | (5) |
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Customer Coverage Policies |
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383 | (1) |
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384 | (15) |
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385 | (3) |
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388 | (11) |
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399 | (9) |
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399 | (4) |
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403 | (2) |
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405 | (2) |
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Designated Product Policies |
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407 | (1) |
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Selection and Termination Policies |
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408 | (3) |
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411 | (3) |
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Vertical Integration by Merger |
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412 | (1) |
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Vertical Integration by Internal Expansion |
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413 | (1) |
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413 | (1) |
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414 | (4) |
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418 | (1) |
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418 | (7) |
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Part IV: Channel Institutions |
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425 | (152) |
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425 | (59) |
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425 | (1) |
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Choosing a Retail Positioning Strategy |
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426 | (25) |
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Financial and Cost-Side Positioning: Margin and Inventory Turnover Goals |
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435 | (7) |
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442 | (7) |
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Implications for a Taxonomy of Retail Types |
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449 | (2) |
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Strategic Issues in Retailing |
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451 | (21) |
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Managing the Multichannel Shopping Experience |
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451 | (12) |
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Recognizing and Responding to the Continued Strong Power Position of Major Retailers |
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463 | (7) |
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The Continued Globalization of Retailing |
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470 | (2) |
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472 | (2) |
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474 | (1) |
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475 | (4) |
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Appendix 11A: A Glossary of Pricing and Buying Terms Commonly Used by Retailers |
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479 | (2) |
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Appendix 11B: Merchandise Planning and Control |
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481 | (3) |
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484 | (34) |
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484 | (1) |
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An Overview of the Wholesaling Sector |
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485 | (3) |
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485 | (1) |
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The Wholesaler-Distributor's Role in the Supply Chain |
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486 | (1) |
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The Importance of Wholesaler-Distributors |
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487 | (1) |
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What the Independent Wholesale Sector Offers: The Essential Tasks |
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488 | (7) |
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Three Great Challenges of Wholesaling: 200 Years of Pharmaceuticals |
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489 | (1) |
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Wholesaling in an Emerging Economy |
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490 | (2) |
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Surprising Ways for Wholesalers to Add Value |
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492 | (1) |
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493 | (2) |
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Federations of Wholesalers |
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495 | (3) |
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Wholesaler-Led Initiatives |
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496 | (1) |
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496 | (1) |
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Manufacturer-Led Initiatives |
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496 | (1) |
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The Requirements for Innovative Wholesale Service |
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497 | (1) |
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Voluntary and Cooperative Groups |
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498 | (4) |
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Wholesaler Voluntary Groups |
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498 | (1) |
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Alternative Federations of Downstream Channel Members |
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499 | (3) |
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502 | (3) |
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Consolidation Pressures in Wholesaling |
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502 | (2) |
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The Manufacturer's Response to Wholesale Consolidation |
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504 | (1) |
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Export Distribution Channels |
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505 | (1) |
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The Future of Wholesaler-Distributors |
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506 | (4) |
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506 | (1) |
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507 | (1) |
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508 | (1) |
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509 | (1) |
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Capturing Value After Creating Value: Wholesaler Profitability |
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509 | (1) |
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A Sketch of Vertical Integration and of Agents in Wholesaling |
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510 | (3) |
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Vertical Integration Forward into Wholesaling by Manufacturers |
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510 | (1) |
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Set the Price and See the Buyer: Agents, Brokers, and Commission Agents |
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511 | (2) |
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513 | (2) |
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515 | (1) |
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515 | (3) |
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518 | (42) |
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518 | (2) |
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520 | (5) |
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523 | (1) |
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523 | (1) |
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Why Ask a Franchisor to Provide These Services? |
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524 | (1) |
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525 | (6) |
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Raising Financial and Managerial Capital to Grow Fast |
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525 | (2) |
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Harnessing the Entrepreneurial Spirit |
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527 | (3) |
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When Is Franchising Inappropriate? |
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530 | (1) |
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The Historical Roots of Franchising |
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531 | (5) |
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The Authorized Franchise System: Moving the Product |
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531 | (4) |
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The Dividing Line: When Does Franchising Stop? |
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535 | (1) |
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536 | (7) |
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Giving and Taking Hostages, Or Why You Shouldn't Leave It to Lawyers |
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536 | (1) |
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537 | (2) |
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Who Will Be the Landlord? |
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539 | (1) |
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539 | (1) |
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Why Contracts Do Not Vary within a System |
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540 | (1) |
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Safeguards Outside the Contract |
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540 | (1) |
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When Do Franchisors Enforce Their Contracts? |
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541 | (2) |
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Why Franchise Systems Include Company Outlets |
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543 | (4) |
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543 | (1) |
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Temporary Franchises and Temporary Company Stores |
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544 | (1) |
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The Plural Form: Exploiting the Synergy of Having Both Company and Franchisee Outlets |
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544 | (2) |
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Exploiting Franchisees: Redirection of Ownership |
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546 | (1) |
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Ongoing Challenges Facing the Franchisor |
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547 | (5) |
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547 | (1) |
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Gaining and Keeping a Cooperative Atmosphere |
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548 | (1) |
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549 | (1) |
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Multiunit Franchising: Handicap or Advantage? |
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550 | (2) |
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Other Ways to Gain Cooperation |
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552 | (1) |
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552 | (3) |
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555 | (1) |
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556 | (4) |
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Logistics and Supply Chain Management |
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560 | (17) |
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The Impact of Logistics and Supply Chain Management |
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560 | (1) |
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561 | (4) |
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Efficient Consumer Response |
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563 | (1) |
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Obstacles to Efficient Consumer Response |
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564 | (1) |
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565 | (1) |
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Putting It All Together: What Is the Right Supply Chain? |
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566 | (6) |
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Physical Efficiency versus Market Responsiveness |
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566 | (5) |
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Supply Chain Management: Why Only Now? |
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571 | (1) |
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572 | (1) |
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573 | (1) |
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574 | (3) |
Company Index |
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577 | (6) |
Name Index |
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583 | (6) |
Subject Index |
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589 | |