The Structure of Reseller Goals and Performance in Marketing Channels

Abstract

The typical view of a marketing channel is that of a manufacturer-designed and -controlled distribution system. However, today, marketing functions, as well as market power, are more evenly distributed in the channel. In organizing and managing the modern channel, it is important to understand the business circumstances and priorities confronting channel members. This article studies how reseller firms establish their goal hierarchies and how these goals are related to performance. It hypothesizes that goal priorities emerge in relation to the environmental imperatives faced by the firm. The article develops hypotheses that are tested on survey data collected from a sample of franchisee firms, using structural equation models. The results support all the hypotheses about the effects of primary goals on performance. The effects of secondary goals are not unequivocal but informative nevertheless. Overall, the study points to interesting theoretical and managerial conclusions.

Market Environment, Assortment Policy, and Performance of Small Retailers

“…The results in support of H5, that greater market munificence has a positive effect on the size of assortments, endorse a general argument that greater munificence reflects greater confidence in market potential and a greater perception that market conditions generally favor exploitation and expansion by a retailer (Achrol and Etzel, 2003). One manifestation of such a perception may be a willingness to offer wider assortments.…”

Eco-friendly product development strategy: antecedents, outcomes, and contingent effects

“…This is because firms need to enhance understanding of customer preferences and purchasing behavior, constantly seek new opportunities, and be adaptable to changing customer requirements (Achrol and Etzel 2003). Thus, dynamism creates opportunities for firms to enact the type of radical changes needed and focus on innovations that could improve their marketplace position (Baron and Tang 2011).…”

Sales promotions and channel coordination

“…Joint promotion strategies are also in agreement with the ideas about partnerships between distributors and manufacturers found in marketing literature (Anderson and Narus 1990). Within the vertical distribution channel, it is increasingly recognized that parties should work together and improve coordination (Achrol and Etzel 2003). Monitoring channel members, through the electronic transfer of information, is becoming more and more fashionable.…”