Product Quality in a Distribution Channel with Inventory Risk

Kinshuk Jerath
Corresponding Author
Kinshuk Jerath
[email protected]
http://orcid.org/0000-0003-0732-5863
Columbia Business School, Columbia University, New York, New York 10027
Search for more papers by this author
,
Sang-Hyun Kim
Sang-Hyun Kim
[email protected]
Yale School of Management, Yale University, New Haven, Connecticut 06520
Search for more papers by this author
,
Robert Swinney
Robert Swinney
[email protected]
Fuqua School of Business, Duke University, Durham, North Carolina 27708
Search for more papers by this author

Kinshuk Jerath

Corresponding Author

Kinshuk Jerath

[email protected]

http://orcid.org/0000-0003-0732-5863

Columbia Business School, Columbia University, New York, New York 10027

Search for more papers by this author

Sang-Hyun Kim

[email protected]

Yale School of Management, Yale University, New Haven, Connecticut 06520

Search for more papers by this author

Robert Swinney

[email protected]

Fuqua School of Business, Duke University, Durham, North Carolina 27708

Search for more papers by this author

Published Online:11 Jul 2017https://doi.org/10.1287/mksc.2017.1041

Supplemental Material

mksc.2017.1041-sm.pdf (2 MB)

Cited by
- Dynamic Pricing and Demand Learning in Decentralized Supply Chains: Implications for Product Quality and Firm Profits
  7 January 2026 | Production and Operations Management, Vol. 35, No. 7
- From store to surplus food platform: Implications of competition in quantity‐based sales
  23 June 2026 | Decision Sciences, Vol. 29
- Analyzing supply chain frangibility and risks in the Indian automobile industry
  20 May 2026 | Journal of Quality in Maintenance Engineering, Vol. 71
- Probabilistic Selling for Vertically Differentiated Products in a Decentralized Channel
  Zhechao Yang,
  Hongseok Jang,
  Xiajun Amy Pan
  30 April 2026 | Manufacturing & Service Operations Management, Vol. 0, No. 0
- Operational Decisions of Online Dual-channel Supply Chain Considering Products Quality Difference under Different Financing Modes
  28 July 2025 | Journal of Systems Science and Systems Engineering, Vol. 35, No. 2
- Strategies to outsource acquisition and retention: the impact of effort comparison and risk preference
  28 March 2026 | Annals of Operations Research, Vol. 19
- Product donation and inventory strategies considering ex ante commitment and prosocial consumers
  20 January 2026 | Annals of Operations Research, Vol. 358, No. 3
- Product Information Display Optimization with Quality Uncertainty and Returns
  Yang Lu,
  Ruxian Wang,
  Xiaoming Yan,
  Yugang Yu
  18 February 2026 | Manufacturing & Service Operations Management, Vol. 0, No. 0
- Product quantity and supplier format choice under platform information sharing
  10 July 2025 | Operations Management Research, Vol. 18, No. 4
- Price markdowns to induce customers to opt out of free returns
  16 January 2025 | IISE Transactions, Vol. 57, No. 10
- Quality Investment With Information Acquisition Transparency
  12 June 2025 | Managerial and Decision Economics, Vol. 46, No. 7
- Does a Manufacturer Benefit from Selling to a Better-Forecasting Retailer in a Supply Chain with Responsive Pricing?
  7 April 2025 | Asia-Pacific Journal of Operational Research, Vol. 42, No. 05
- Incentives for Information Revelation in a Supply Chain and the Bullwhip Effect
  3 September 2025 | Production and Operations Management, Vol. 75
- The impact of blockchain technology on competing suppliers on an E-commerce platform
  Information & Management, Vol. 62, No. 6
- Channel Structures for a Dual-Purpose Firm: Direct, Retail, or Hybrid?
  25 February 2025 | Production and Operations Management, Vol. 34, No. 8
- Bundling and Line Extensions in Distribution Channels
  Roman Inderst,
  Fabian Griem,
  Greg Shaffer
  28 October 2024 | Management Science, Vol. 71, No. 7
- Government Financing for Clean Technology Development: Financial Risk and Environmental Benefits
  30 December 2024 | Production and Operations Management, Vol. 34, No. 7
- Inventory Information Frictions Explain Price Rigidity in Perishable Groceries
  Naveed Chehrazi; ,
  Robert Evan Sanders; ,
  Ioannis Stamatopoulos
  26 November 2024 | Marketing Science, Vol. 44, No. 2
- Quality and selling format choices in a supply chain considering remanufacturing competition
  13 November 2023 | Kybernetes, Vol. 54, No. 2
- Disruption management for a remanufacturer with dual collection channels
  23 June 2022 | International Journal of Logistics Research and Applications, Vol. 28, No. 1
- Quality-differentiated distribution strategies between live streaming and online channels
  Journal of Retailing and Consumer Services, Vol. 82
- Managing Channel Interactions Through Strategic Information Sharing and Personalized Pricing
  1 January 2025 | SSRN Electronic Journal, Vol. 24
- Advance selling policies with stochastic consumer valuations and advertising effects: dynamic pricing and inventory decisions
  International Journal of Production Economics, Vol. 277
- Traditional or drop-shipping? channel choice and product quality
  16 February 2024 | International Journal of Production Research, Vol. 62, No. 19
- Information sharing and production mode selection with price and quality competition
  3 October 2023 | International Transactions in Operational Research, Vol. 31, No. 4
- Risk Aversion and Double Marginalization*
  20 November 2023 | The Journal of Industrial Economics, Vol. 72, No. 2
- Wholesale Price Discrimination and Contract Unobservability
  28 April 2024 | Production and Operations Management, Vol. 33, No. 6
- Product Quality and Information Sharing in the Presence of Reviews
  Dongwook Shin,
  Assaf Zeevi
  27 March 2023 | Management Science, Vol. 70, No. 3
- Cooperation mechanism, product quality, and consumer segment in group buying
  Electronic Commerce Research and Applications, Vol. 64
- Quick Response Under Strategic Manufacturer
  Jiguang Chen,
  Qiying Hu,
  Duo Shi,
  Fuqiang Zhang
  17 October 2023 | Manufacturing & Service Operations Management, Vol. 26, No. 1
- Dynamic pricing for new experience products in pre-sale mode with social learning
  Journal of Retailing and Consumer Services, Vol. 76
- A Supply Chain System Involving the Interaction of Guarantee Finance With Product Quality and After-Sales Service
  IEEE Transactions on Engineering Management, Vol. 71
- Selling Co-products through a Distributor: The Impact on Product Line Design
  1 January 2024 | SSRN Electronic Journal, Vol. 18
- Product Display Optimization with Quality Uncertainty and Return
  1 January 2024 | SSRN Electronic Journal, Vol. 26
- Supply chain coordination with inventory risk allocation
  JUSTC, Vol. 54, No. 8
- The interactions between online platform’s store brand introduction and manufacturer’s innovation strategies: Reselling vs. agency modes
  Electronic Commerce Research and Applications, Vol. 62
- Quality differentiation and e‐tailer's choice between reselling and agency selling
  9 May 2023 | Managerial and Decision Economics, Vol. 44, No. 6
- Hybrid channel structure and product quality distribution strategy for online retail platform
  18 May 2023 | PLOS ONE, Vol. 18, No. 5
- Innovative development strategy of a risk-averse firm considering product unreliability under competition
  Transportation Research Part E: Logistics and Transportation Review, Vol. 172
- Pricing design and contract selection with customers’ self-control: a strategic analysis
  31 March 2022 | Journal of Modelling in Management, Vol. 18, No. 2
- Live commerce retailing with online influencers: Two business models
  International Journal of Production Economics, Vol. 255
- Effects of Responsive Pricing on Product Quality and Profits in Supply Chain
  1 January 2023 | SSRN Electronic Journal, Vol. 57
- Optimal distribution strategy and online channel mode by considering retailer's fairness concerns
  Journal of Industrial and Management Optimization, Vol. 19, No. 4
- Healthcare service enhancement with patient search
  Journal of Business Research, Vol. 152
- Effects of Supplier’s Competitive Factors on Relationship Performance and Product Recommendation in Crop Protection Retail Sector
  20 November 2022 | Journal of Risk and Financial Management, Vol. 15, No. 11
- “Free replacement extended warranty” or “traditional extended warranty”: Optimal extended warranty selection strategy
  25 February 2022 | Managerial and Decision Economics, Vol. 43, No. 7
- Effects of Reactive Capacity on Product Quality and Firm Profitability in an Uncertain Market
  Baojun Jiang,
  Lin Tian
  8 June 2022 | Operations Research, Vol. 70, No. 5
- Channel differentiation strategy in a dual-channel supply chain considering free riding behavior
  European Journal of Operational Research, Vol. 301, No. 2
- Technology and service investments in the presence of feature fatigue and word-of-mouth
  European Journal of Operational Research, Vol. 301, No. 3
- The choices of channel structures and information strategies in a supply chain
  Journal of Management Science and Engineering, Vol. 7, No. 3
- Quality and distribution channel selection on a hybrid platform
  Transportation Research Part E: Logistics and Transportation Review, Vol. 163
- Dual-channel competition: the role of quality improvement and price-matching
  6 June 2021 | International Journal of Production Research, Vol. 60, No. 12
- Manufacturers’ product line strategies and environmental impacts under carbon cap and trade policies
  27 January 2022 | Environmental Science and Pollution Research, Vol. 29, No. 27
- Drop-shipping or batch ordering: Contract choice in the presence of information sharing and quality decision
  Journal of Management Science and Engineering, Vol. 7, No. 2
- Intertemporal Content Variation with Customer Learning
  Fernando Bernstein,
  Soudipta Chakraborty,
  Robert Swinney
  10 November 2021 | Manufacturing & Service Operations Management, Vol. 24, No. 3
- Sustainability in the Fast Fashion Industry
  Xiaoyang Long,
  Javad Nasiry
  21 January 2022 | Manufacturing & Service Operations Management, Vol. 24, No. 3
- Effects of online-to-offline spillovers on pricing and quality strategies of competing firms
  International Journal of Production Economics, Vol. 244
- Store-Brand Introduction and Multilateral Contracting
  Quan Zheng,
  Hongseok Jang,
  Xiajun Amy Pan
  16 March 2021 | Manufacturing & Service Operations Management, Vol. 24, No. 1
- Impact of quality decisions on information sharing with supplier encroachment
  7 February 2022 | RAIRO - Operations Research, Vol. 56, No. 1
- Distribution Channel Relationships in the Presence of Multimarket Contact
  1 January 2022 | Production and Operations Management, Vol. 31, No. 1
- Adoption time of a maturing disruptive technology in a duopoly market
  24 December 2021 | RAIRO - Operations Research, Vol. 55, No. 6
- Is Your Retailer a Friend or Foe: When Should the Manufacturer Allow Its Retailer to Refurbish?
  1 September 2021 | Production and Operations Management, Vol. 30, No. 9
- Vertical Contracts in a Supply Chain and the Bullwhip Effect
  Zhan Qu,
  Horst Raff
  15 October 2020 | Management Science, Vol. 67, No. 6
- Quality differentiation in a dual-channel supply chain
  European Journal of Operational Research, Vol. 290, No. 3
- Incentive Design for Operations-Marketing Multitasking
  Tinglong Dai,
  Rongzhu Ke,
  Christopher Thomas Ryan
  4 August 2020 | Management Science, Vol. 67, No. 4
- Reducing channel inefficiency in product line design
  International Journal of Production Economics, Vol. 232
- Product line design with vertical and horizontal consumer heterogeneity: the effect of distribution channel structure on the optimal quality and customization levels
  15 October 2020 | European Journal of Marketing, Vol. 55, No. 1
- Signaling to the Crowd: Private Quality Information and Rewards-Based Crowdfunding
  Soudipta Chakraborty,
  Robert Swinney
  3 April 2020 | Manufacturing & Service Operations Management, Vol. 23, No. 1
- The role of retailer’s app channel in a supply chain with quality decision and different power structures
  2 March 2021 | RAIRO - Operations Research, Vol. 55
- Performance, Reliability, or Time‐to‐Market? Innovative Product Development and the Impact of Government Regulation
  1 January 2021 | Production and Operations Management, Vol. 30, No. 1
- Government Financing for Clean Technology Development: Financial Risk and Social Benefits
  SSRN Electronic Journal, Vol. 24
- Inventory Record Inaccuracy Explains Price Rigidity in Perishable Groceries
  SSRN Electronic Journal, Vol. 6
- Product Quality and Information Sharing in the Presence of Reviews
  SSRN Electronic Journal, Vol. 33
- Small Farm Business Analysis Using the AHP Model for Efficient Assessment of Distribution Channels
  15 December 2020 | Sustainability, Vol. 12, No. 24
- Return Window Decision in A Distribution Channel
  1 September 2020 | Production and Operations Management, Vol. 29, No. 9
- Pricing strategies and mechanism choice in reward-based crowdfunding
  European Journal of Operational Research, Vol. 284, No. 3
- A systematic review of responsiveness to develop future research agenda: a TCCM and bibliometric analysis
  Benchmarking: An International Journal, Vol. 27, No. 9
- Reducing channel costs by investing in smart supply chain technologies
  Transportation Research Part E: Logistics and Transportation Review, Vol. 137
- Retailer information sharing under endogenous channel structure with investment spillovers
  Computers & Industrial Engineering, Vol. 142
- Quick Response Under Strategic Manufacturer
  SSRN Electronic Journal, Vol. 54
- Cost-benefit associations in consumer inventory problem with uncertain benefit
  Journal of Retailing and Consumer Services, Vol. 51
- The “first principles” of marketing strategy
  10 April 2019 | AMS Review, Vol. 9, No. 1-2
- Social Learning and the Design of New Experience Goods
  Pnina Feldman,
  Yiangos Papanastasiou,
  Ella Segev
  18 July 2018 | Management Science, Vol. 65, No. 4
- Supply chain coordination with product line design and a revenue sharing scheme
  1 April 2019 | Naval Research Logistics (NRL), Vol. 66, No. 3
- Selling Co‐Products through a Distributor: The Impact on Product Line Design
  1 April 2019 | Production and Operations Management, Vol. 28, No. 4
- Manufacturer encroachment with quality decision under asymmetric demand information
  European Journal of Operational Research, Vol. 273, No. 1
- Quality and pricing decisions in production/inventory systems
  European Journal of Operational Research, Vol. 272, No. 1
- Choice of Distribution Channels for Experience Products Using Virtual Reality
  IEEE Access, Vol. 7
- Supply Chain Coordination with Product Line Design and a Revenue Sharing Scheme
  SSRN Electronic Journal, Vol. 215
- Sustainability in the Fast Fashion Industry
  SSRN Electronic Journal, Vol. 21
- Managing Subscription Box Content Over Time to Acquire and Retain Subscribers
  SSRN Electronic Journal, Vol. 59
- Strategic decentralization under sequential channel structure and quality choices
  International Journal of Production Economics, Vol. 206
- Incentives through inventory control in supply chains
  International Journal of Industrial Organization, Vol. 59
- Quality and Pricing Decisions in a Two-Echelon Supply Chain with Nash Bargaining Fairness Concerns
  Discrete Dynamics in Nature and Society, Vol. 2018
- Incentive Design for Operations-Marketing Multitasking
  SSRN Electronic Journal, Vol. 17
- Effects of Quick Response and Market Uncertainty on Product Quality and Firm Profitability
  SSRN Electronic Journal, Vol. 223
- Price Markdowns to Induce Customers to Opt Out of Free Returns
  SSRN Electronic Journal, Vol. 18
- Signaling to the Crowd: Private Quality Information and Rewards-Based Crowdfunding
  SSRN Electronic Journal, Vol. 84

Volume 36, Issue 5

September-October 2017

Pages 645-812

Article Information

Supplemental Material

Metrics

Information

Received:April 28, 2015
Accepted:January 31, 2017
Published Online:July 11, 2017

Cite as

Kinshuk Jerath, Sang-Hyun Kim, Robert Swinney (2017) Product Quality in a Distribution Channel with Inventory Risk. Marketing Science 36(5):747-761.

https://doi.org/10.1287/mksc.2017.1041

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Product Quality in a Distribution Channel with Inventory Risk

Supplemental Material

Volume 36, Issue 5

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News