Factors that influence the length of industrial channels

Jackson, D. Paul; Krampf, Robert F.; Konopa, Leonard J.

doi:10.1016/0019-8501(82)90015-3

Cited by 12 publications

(6 citation statements)

References 5 publications

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“…These are the rights to conduct a business relationship over the long term between a manufacturer and his customer. Our findings are also consistent with the study by Jackson et al (1982) , who observed that industrial manufacturers tend to use integrated channels when the significance customers attach to the purchase decision is high.…”

Section: Simplifying the Above Expression Yieldssupporting

confidence: 93%

“…In order not to alienate large customers with spoilt goods because of slow deliveries, manufacturers may decide to integrate forwards. Hence, the delivery of customer benefits may differ if direct distribution is used, as opposed to market intermediaries (Bucklin, 1966;Frazier, Sawhney, and Shervani, 1990;Lilien, 1979;Jackson, Krampf, and Konopa, 1982;Rangan, Menezes, and Maier, 1992). Therefore, the manufacturer has to ensure that the distribution channel is chosen in such a way that customers gain maximum benefits.…”

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confidence: 99%

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Going direct to market: The influence of exchange conditions

Majumdar

Ramaswamy

1995

Strategic Management Journal

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When faced with the strategic choice of going direct to market versus the option of using intermediaries, a firm is posited to evaluate the benefits to customers from going direct to market, and the transaction costs involved in using intermediaries. I n this paper, we discuss how these evaluations might differ depending upon the microcharacteristics of the exchange domain. Based on these theoretical considerations, specific propositions are offered regarding the conditions under which firms might rely more heavily on direct channels. These propositions are tested by conducting a cross-sectional empirical analysis using a large sample of manufacturing fir.ms operating in diverse exchange domains. We also control for the impact of macrolevel environmental characteristics, as well as firm-level characteristics that may influence the direct to market decision. Our empirical results confirm that customer benefits and transaction costs are important considerations in going direct to market.

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Section: Simplifying the Above Expression Yieldssupporting

confidence: 93%

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confidence: 99%

Going direct to market: The influence of exchange conditions

Majumdar

Ramaswamy

1995

Strategic Management Journal

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“…If one institution is eliminated, its functions will be shifted either forwards or backwards in the channel, because "You can eliminate the middleman but you cannot eliminate his function" (Stern & El Ansary, 1988). In consequence, according to marketing channels theories, the distribution channel will be long and wide, with many warehouses or stock locations in order to be geographically close to the customer if (Jackson et al, 1982):…”

Section: The Two Empirical Tracks Are Well Founded In Theorymentioning

confidence: 99%

Dynamic Effectiveness

Abrahamsson

Brege

2004

Journal of Marketing Channels

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Based on different observations, in theory as well as in practice, we have identified strategies and operations following two different tracks, striving in different directions, despite it being well known they should go hand in hand. For companies challenged by a more and more dynamic business environment with heavier market segmentation, additional marketing channels, increasing globalisation on supplier and customer side, and high pressure on profit margins, the result from this is competitive weakness.The purpose of this article is to switch focus from operational effectiveness and strategic positioning as static success concepts on how to improve industrial distribution, to dynamic challenges of how to continuously manage the interaction between marketing strategies and operations (e.g., logistics) under the influence of a dynamic business environment.From theories in market strategies, logistics, flexibility, and marketing channels together with empirical experience from a best practice case study, we are introducing a model for dynamic effectiveness, de-Mats Abrahamsson is Professor of Logistics Management, Linköping University,

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“…Aspinwall [1962] argues that red goods, as defined above, will be preferably distributed through indirect channels. Jackson et al [1982] observed that the length of marketing channels for industrial products increased when the number of capable middlemen and the number of customers increased, and that this length decreased when the significance of purchase, the customer volume, the geographic concentration of the market, and the industrial concentration of the market increased.…”

Section: General Theories Of Marketing Channelsmentioning

confidence: 99%

Export Marketing Channels: Some Theoretical Considerations

Meulenberg¹

1984

Nijenrode Studies in Business

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Factors that influence the length of industrial channels

Cited by 12 publications

References 5 publications

Going direct to market: The influence of exchange conditions

Going direct to market: The influence of exchange conditions

Dynamic Effectiveness

Export Marketing Channels: Some Theoretical Considerations

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