AJOU Central Library Repository: A Study on the Influence of Channel structure on Consumer Price Level

Graduate School of Ajou University Department of Business Administration 3. Theses(Master)

A Study on the Influence of Channel structure on Consumer Price Level

Alternative Abstract: A channel structure serves as a medium through which economic goods moves from the supplier through the retailer to the final consumer. The retailing section of a channel structure can be described as a common retailing agent or exclusive retailing agent. Where the former sells multi-brand products of numerous manufacturers to consumers while the latter involves selling single brands or products form one manufactures. The products may be acquired from the manufacturers on consignment or straight buying basis. The goal of the study was to identify how these channel forms affect retail prices and consequently consumer welfare. Using the consumer price index of Korea, the analysis of the results revealed that the rates of price increase for consumer products are high for exclusive dealing than common retailing. It was also identified that consignment increases price level more than straight buying but such difference is weakly supported by the data. In terms of the combine distribution structure, exclusive dealing and consignment as one channel form has a higher case of increasing retail prices. The research indicated that one of the factors that can improve consumer welfare is low price. Hence, in a channel structure straight buying and common retailing are the most desirable form of channel structure that can help improve consumer welfare.

Appears in Collections:: Graduate School of Ajou University > Department of Business Administration > 3. Theses(Master)

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