Advertising e-managers and website developers can also be enlightened from this proposition that for homogeneous products, it is a good strategy to put the deep-discounted homogeneous products at the obvious positions or the front page of the social commerce websites so that people can see these products easily and trust these products even after the deep discount rates are employed, so that the websites draw more attentions and build a good reputation among online consumers.
Heterogeneous products are on the contrary to homogeneous products, people are quite sensitive to the discount rates and start to have suspensions at small discount rates.
In contrast, our results show that, compared to selling lower-quality products directly or offering homogeneous products through both channels, an effort by the manufacturer that is too aggressive in its attempt to encroach on the retail market (i.e., selling higher-quality products directly) not only decreases retailer profit but also hurts manufacturer profitability.
In addition, contrary to Ha et al.'s  results, our analysis shows that, rather than encroaching into retail market with high-quality product, the manufacturer clearly should prefer the strategy of providing lower-quality products directly or offering homogeneous products through both channels.
) state that the retailer may benefit from the reduced wholesale price when the manufacturer encroaches on the market by selling homogeneous products, little is known about how the reduced wholesale price under encroachment with differentiated products affects the retailer's profit.
The first model introduces increasing marginal costs into the G&V homogeneous product model and, by showing the equivalence with the differentiated products model, demonstrates the possibility of type 2 underinvestment in this scenario.
In the G&V homogeneous product setting, incumbent 1's maximum profit from deterring entry, [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], is continuously decreasing in incumbent 2's output, as shown in Figure 6.
An analysis of special cases with homogeneous products (with only two prices) have been provided by Eaton and Grossman (1986) and Markusen and Venables (1988).
[MATHEMATICAL EXPRESSION OMITTED] For homogeneous products this ratio is unity, while more product differentiation pulls this ratio towards zero.
This result indicates that industries producing heterogeneous products tend to spend on advertising one percent of total sales more than do industries producing homogeneous products. The mean value of Ad/S for industries producing heterogeneous products is 0.017, and it is 0.0004 for industries producing homogeneous products.
At this point I wondered if the inter-temporal change in the level of concentration was different in industries producing heterogeneous products as compared to those producing homogeneous products. In order to compare the means of subsamples for the Census years 1963, 1972 and 1977, I had to sacrifice 136 four-digit industries that had been reclassified over the years.