Selling an opaque product through an intermediary: The case of disguising one's product

Research output: Contribution to journalArticle

71 Scopus citations

Abstract

This paper models multiple service providers who use an intermediary to sell an opaque product. An opaque product is a product whose identity is concealed from consumers until after purchase. I find that an opaque good may allow finer segmentation of a service provider's customer base, lead to market expansion, and/or reduce price rivalry. However, if there is little brand-loyalty in an industry, an opaque good increases the degree of price rivalry and reduces total industry profit. The paper also discusses issues regarding channel structure and outlines managerial implications of this research.

Original languageEnglish (US)
Pages (from-to)59-75
Number of pages17
JournalJournal of Retailing
Volume84
Issue number1
DOIs
StatePublished - Apr 1 2008
Externally publishedYes

Keywords

  • Channels
  • E-commerce
  • Hotwire
  • Intermediaries
  • Opaque products
  • Priceline
  • Pricing

ASJC Scopus subject areas

  • Marketing

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