Integrating Production Costs in Channel Decisions

Production costs are critical in every business. In this research, we explore how variations in the manufacturer's production cost affect both the manufacturer–retailer channel relationship and the manufacturer's and the retailer's choice of a price-setting rule (e.g., a dollar-amount margin or a percentage-based margin). We employ a multidisciplinary approach that combines executive interviews, survey research, and a game-theoretic analytical …