Does the Distribution-Sales Relationship Differ Between Channels and Countries? An Empirical Analysis

Although it is intuitive that retailers should increase coverage of products that are selling well, it is somewhat less intuitive that retailers should take the risk of increasing coverage before sales increases have materialized in an effort to push these products on consumers. We use a simultaneous equation model to analyze sales and distribution coverage of two brands of an innovative new consumer durable in competing types of distribution channels in four European countries in order to examine whether retailers in different countries make their coverage decisions for a new durable product in the same ways.

Citation:

Hubert Gatignon, Erin Anderson, and Joseph Lajos (2011) ,"Does the Distribution-Sales Relationship Differ Between Channels and Countries? An Empirical Analysis", in AP - Asia-Pacific Advances in Consumer Research Volume 9, eds. Zhihong Yi, Jing Jian Xiao, and June Cotte and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 166-169.