Jenny Chen – Rowe School of Business, Dalhousie University, Canada
The study examines the information acquisition strategy of a dual-channel supply chain, in which a manufacturer sells a product through a retailer and its direct channel. Either the manufacturer or the retailer can acquire demand information from a third-party marketing research company. We identify conditions under which neither of the firms will acquire demand information, even when the cost is negligible. We show that information acquisition can have a negative impact on the retailer, the supply chain, customers, and society. The study implies that firms with more accurate demand data must develop strategies to use the information appropriately.