The structure of reseller goals and performance in marketing channels

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. Ravi S. Achrol (raachrol@mail.wvu.edu) (Ph.D., Northwestern University) is the Kmart Professor of Marketing in the College of Business & Economics at West Virginia University. Previously, he has served on the faculties of the George Washington University and the University of Notre Dame. His areas of research interest include distribution channels, marketing strategy, interorganizational relations, and network organization. His articles have appeared in theJournal of the Academy of Marketing Science, theJournal of Marketing, theJournal of Marketing Research, theJournal of Public Policy and Marketing, theJournal of Retailing, Social Science Research, theJournal of Business Strategy, and various other publications. Michael J. Etzel (michael.j.etzel.1@nd.edu) (DBA, University of Colorado) is a professor of marketing at the University of Notre Dame. He has previously served on the faculties of the University of Kentucky and Utah State University. His areas of research include marketing management and strategy, retailing, and buyer behavior. In 1996–1997, he served as chair of the Board of the American Marketing Association. His research has appeared in a variety of publications, most notably theJournal of Marketing Research, theJournal of Marketing, theJournal of Consumer Research, and theJournal of Retailing.