Interfirm Technology Transfer:

This study focuses on the independent and interactive effects of problem issue situations and resolution strategies on performance in manufacturer–dealer channel relationships. Conflict issue situation and resolution strategy were a priori matched for a 2 × 2 factorial quasi-experiment. The theoretical framework of (inter)organizational conflict reaction theory was used to extend existing empirical findings about the influence of two factors that foster constructive or destructive consequences experienced from the prospective of dealers. Data were obtained from a sample of 243 dealers and 9 trade administrative experts. The results indicate significant main effects of issue situation and resolution strategy on dealer performance. A significant interaction effect also was found. Managerial implications for dealing with ongoing problem issues with different resolution strategies are discussed.     

The strategic use of early bird discounts for dealers

We study a widely used ordering process (“Early Bird Discounts”) whereby a profit-maximizing manufacturer permits his dealers to place advance orders at a discount before they set retail prices. We show that such discounts may be used to shift just enough channel profits to dealers to enable them to cover their fixed costs and stay in business. If the manufacturer instead simply cut his wholesale price in order to generate gross margins for his dealers, these margins would soon dissipate as price competition among dealers selling the same product forced retail prices back down to the per-unit cost. We show that when dealer fixed costs are low, the manufacturer offers an Early Bird Discount to his multiple dealers that induces all but two of them to exit; when fixed costs are high, the manufacturer offers no preorder discount (i.e. switches to linear pricing) and induces all but one dealer to exit. Although uniform slotting allowances could also be used to reward dealers, a sales-based alternative like an Early Bird Discount sometimes has a key advantage when the manufacturer has dealers in cities of different sizes. If the same Early Bird Discount is offered, dealers in markets with more consumers, who typically have larger fixed costs, will preorder larger amounts and will automatically receive higher gross margins. To duplicate such payments with slotting allowances, non-uniform allowances would have to be offered to firms in different markets, which is divisive and possibly illegal.     

An Examination of the Coercive Power-Satisfaction Relationship Within a Relational Exchange

ABSTRACT

The authors develop a oonoeptual model that examines the moderating effect of dealer resistance on the use of coercive power-satisfaction relationship. The results provide a possible explanation for inconsistent results within extant channel literature regarding relationships that are power and/or dependency asymmetric Within the context of the model, the authors also provide a conceptualization of the endogenous construct, conflict potential, as a means to examine what motivates a channel member to exercise coercive power as an influencing agent. The model also examines the dealer's tendency to yield or acquiesce decision-making control to the manufacturer within the context of the use of coercive power-satisfaction relationship. The model is tested, via two-group structural equation modeling using a sample of 324 high level executives from the office systems and furniture industry. The authors provide theoretical and managerial implications of the research results as well as directions for future research.     

Aligning Company and Dealer Perspectives in Corporate Branding: Implications for Dealer Satisfaction and Commitment

Purpose: There is a contention in marketing literature that gaps between corporate and key stakeholders’ perspectives have unfavorable implications for corporate brand performance. The current article attempts to empirically substantiate this argument. As such, this article looks at the relationship between a car manufacturer and its dealers and examines it from the perspective of the relationship misalignment.

Methodology: Applying the Profile Deviation method, this study tests the effects of a manufacturer–dealer corporate brand misalignment on dealer satisfaction and commitment. The manager-specified ideal profile for a corporate brand was used as a proxy for a manufacturer perspective and a benchmark against which dealer perceptions were compared. The corporate brand construct encompassed the dimensions of corporate image, corporate personality and dealer-experienced value. Hypotheses were tested using Pearson correlations and multiple regressions.

Findings: Results, which were robust across all the corporate brand dimensions, support the hypotheses of negative performance impact of manufacturer-dealer misalignment.

Originality/value/contribution: This study identifies an important link between the theoretical proposition and the operationalization test of examining performance implications of misalignment. The current study argues for broader integrative thinking and cross-disciplinary research in business-to-business marketing. In the absence of the relevant literature on conceptualization and operationalization in the marketing literature, the article borrows a testing method of Profile Deviation from the management field. By developing a fine-grained analysis, the current study pinpoints specific aspects that require co-alignment in corporate branding, thus facilitating managerial decision-making.

Research implications/limitations: The current study demonstrates that deviation from a corporate perspective implies a weakness in corporate branding process with negative performance consequences. The Profile Deviation perspective used in this article has focused on a static, cross-sectional approach for specifying and testing misalignment between a manufacturer and its dealer principles. The researchers are encouraged to consider alternative mechanisms to test for misalignment as a dynamic task within a longitudinal research design.

Practical implications: Companies must be aware of the areas where gaps can occur that impede effective decision-making. Aligning a corporate brand between a company and members of the distribution channel requires careful implementation that encourages dealer inputs in brand operations while avoiding counter-productive implications.     

Dealer Satisfaction Through Relationship Marketing Across Cultures

Abstract

The relationship of supplier-dealer relationalism with dealer satisfaction is examined with the help of a structural equation model in the two diverse cultures of the United States and India. Intrachannel relationalism between suppliers and dealers is measured in six dimensions: solidarity, mutuality, flexibility, role integrity, duration, and trust. The same measures of the various aspects of relationalism and dealer satisfaction are applied in the electric lamp and lighting equipment channels in the two countries with satisfactory reliability and validity. In both countries, relationalism as a whole is found to have a significant positive impact on dealer satisfaction. Individually, different dimensions have significant impacts on dealer satisfaction in the two countries. In the United States, trust and mutuality are individually significant, whereas in India, flexibility is the significant dimension affecting satisfaction. Managerial implications of the results and future research directions are discussed.     

Shades of gray��the impact of gray markets on authorized distribution channels

Gray markets refer to the diversion of unauthorized products from a market or channel with low prices to another market or channel with higher prices. In this paper, we study the effects of gray markets on the profitability of distribution channel members under different channel structures with different parallel importer identities. We show that a manufacturer can benefit from parallel importation by a third party or by an authorized dealer. However, channel structure is critical in determining both who benefits and the mechanism by which this benefit occurs. In addition, we show whether the parallel importer is a third party or a retailer has significant effects on channel members’ profits. Although this research is motivated by international marketing practices, the modeling approach and the results apply more generally to cases where a manufacturer sells to different customer segments at different prices.     

Dealer-Manufacturer Alienation in a Multiple Channel System

Abstract

In recent years, the Internet has accelerated manufacturers' adoption of multiple channels. The literature agrees that multiple channels may cause conflict, but there is little research that identifies factors that either aggravate or alleviate the threat of conflict. Conflict results if manufacturers allow negative affective states, here called “dealer alienation,” to fester. In this article, we investigate how dealer alienation is affected by such factors as environmental uncertainty, transaction-specific investments, and interdependence. The conceptual framework we develop should enable manufacturers to identify situations in which dealer alienation is likely, and to proactively attend to this threat.     

The importance of customer satisfaction in explaining brand and dealer loyalty

The positive influence of customer satisfaction on brand and dealer loyalty is often taken for granted. In this study we attempted to prove whether this relationship really exists. In order to do so we examined the case of an automobile‐dealer network. Three different types of customer satisfaction were distinguished: (a) satisfaction with the car; (b) satisfaction with the sales service and (c) satisfaction with the after‐sales service. It was expected that all three types of satisfaction would have an influence on brand loyalty as well as on dealer loyalty. More specifically, it was expected that satisfaction with the car would be the major determinant of brand loyalty and that satisfaction with the service (both sales‐ and after‐sales service) would be the major determinant of dealer loyalty. Furthermore, a study of the literature revealed that dealer loyalty might also significantly affect brand loyalty.

In the empirical part of the study, customers (n = 416) of different automobile‐dealers of the same brand were asked to fill in a mailed questionnaire. The three different types of customer satisfaction and the intention to buy the same brand of car again, as well as the intention to buy from the same dealer again were measured. The customers were also asked why they would buy the same brand (again) or from the same dealer. In general, the analyses of the results revealed that: customer satisfaction with the car, as well as dealer loyalty are major determinants of brand loyalty; customer satisfaction with the sales service as well as with the after‐sales service are major determinants of dealer loyalty and dealer loyalty is an intervening variable in the relation between satisfaction and brand loyalty. Furthermore, it was found that the strength of the relationship between different types of satisfaction and loyalty indicators differs markedly between various market segments (private/business use of car and new/used car buyers). Several marketing implications are presented. A distinction may be made between the implications for the manufacturer of the physical product and the automobile dealer rendering the service.     

Understanding brand and dealer retention in the new car market: The moderating role of brand tier

Dealers may contribute to brand retention through their sales and service efforts. In this study we investigate the degree to which dealers contribute to brand retention and how this contribution is moderated by brand tier. To this end we distinguish between economy, volume and prestige brands. We also investigate how the effectiveness of dealer instruments to increase dealer retention differs across these brand tiers. We collected data on brand retention and dealer retention among consumers who recently purchased a new car. Our findings show that dealers selling volume brands are able to improve brand retention rates. In contrast, dealers of prestige and economy brands are unable to affect brand retention. In line with the notion of brand-dealer fit we also find that the effects of dealer extrinsic service quality and dealer payment equity on dealer retention differ between prestige, volume, and economy brands. Extrinsic dealer service quality has the smallest effect for dealers selling economy brands, while dealer payment equity is the most important determinant of dealer retention for these dealers.     

企业社会资本对渠道权力与依赖的影响

传统渠道权力与依赖研究将研究视野局限在由两个渠道成员构成的二元渠道关系内,关注关系内的资源依赖特征而缺少对关系以外更大范围的渠道关系网络的关注。针对这一缺陷,文章引入了社会资本理论,并实证性地考察了制造商社会资本对其渠道权力和经销商依赖的影响。研究发现,制造商的社会资本对其渠道权力有显著的正向影响,但对经销商的渠道依赖没有显著影响。同时,以中国本土社会心理学理论为基础,研究证实在中国文化背景下渠道权力作为依赖的前因变量对其有显著的正向影响。     

Government and Market Mechanisms to Provide Alternatives to Scrap Tire Disposal

SUMMARY

The current study examines disposal and recycling of scrap tires with a discussion of the role of government policies and an empirical study of tire dealers' preferences for market and government solutions to disposal problems. Preference for government intervention was related positively to dealer perceptions of environmental concerns, consumer concerns and the severity of the problem, but related negatively to dealers' assessments of manufacturer effectiveness in disposal solutions. Results show the need for more information from manufacturers and government agencies and show dealer support of specific remedies in developing new uses, technologies, and markets for scrap tires. Market development and commercialization of recycled products may be facilitated by cooperation of involved business and government agencies. Particular government actions to stimulate markets include enforcement of disposal restrictions; provision of technological and capital assistances; participation in setting industry standards for recycled rubber products; and state procurement policies.     

Benchmarking sales staffing efficiency in dealerships using extended data envelopment analysis

This study presents an approach to benchmark dealer performance in a business-to-business setting through a rigorous efficiency analysis of sales staff allocation. Using a series of basic and extended data envelopment analysis (DEA) models on data collected from a survey of self-reported financial and statistical information, this research assesses dealer efficiency and compares the efficiency scores to traditional financial benchmarking. Findings support the minimization of outsourcing services that are customer interactive and highly specific to a transaction to differentiate the dealer from its competition. Integrating the results from DEA models, manufacturers obtain a comprehensive view of allocating sales staff to increase dealer efficiency and generating a complementary approach to traditional financial ratio benchmarking in determining best practices to other dealers.     

Efficient replenishment in the distribution channel

Efficient replenishment (ER), a business process that involves the reduction of order cost to facilitate deliveries of goods from the manufacturer to the retailer, is becoming increasingly important in distribution channel management. While a well-executed ER program is expected to lower total channel costs and increase channel profit, very little is known about how this incremental channel profit is distributed between the manufacturer and the retailer and how it varies across the two common channel relationship structures, retailer price leadership and manufacturer price leadership.In this paper, we develop the conditions under which the manufacturer and the retailer gain more or less from the adoption of ER based on a game theoretic channel model of bilateral monopoly under the two channel relationship structures. We develop analytic results on the impact of ER on purchase quantity, price and the distribution of profits in three cases, namely, (1) when only the retailer adopts ER, (2) when both the manufacturer and the retailer adopt ER, and (3) when the manufacturer and the retailer are vertically integrated in the distribution channel, which adopts ER.The results, which can be generalized for all demand functions, show that the manufacturer benefits from the retailer's adoption of ER only when the manufacturer's holding cost relative to the retailer's is sufficiently large, relative to its order cost relative to the retailer's. By adopting ER, the retailer gains more than what the manufacturer gains even if the manufacturer is the price leader. Both the parties are likely to gain more if they both adopt ER than if only the retailer adopts ER. The incremental channel profit due to the retailer's ER adoption is highest in a vertically integrated distribution channel and is greater in a retailer-led channel relationship than in a manufacturer-led relationship.     

Interdealer trading in futures markets

Trading amongst dealers on the floor of the futures exchange is examined. Since there is only one trading venue, the common floor area, trading between dealers is carried on in the presence of trades involving customer orders as well, offering a unique setting for testing the effect of inventory on dealer pricing. The findings are that these futures floor traders implicitly engage in interdealer trading as an inventory management tool. Interdealer trades are more likely to be position reducing than other trades, at higher costs than offsetting with customers. In addition, the concept of a dealer hierarchy is developed, where some floor traders, who generally are more successful, profit from their trades with other dealers. Furthermore, these more successful traders are more likely to use interdealer trading in position reducing trades, which is consistent with the existence of a dealer hierarchy. © 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:923–944, 2004     

Exclusive dealing without territory exclusivity in multichannel systems: managing channel conflict and driving commitment

The exclusive dealing literature suggests that manufacturers should protect exclusive dealers (ED) from intrabrand competition by assigning exclusive territories (ET). We consider ED systems without ET and investigate how manufacturers can enhance ED channel outcomes, such as the ED’s level of commitment to the relationship, by strategically managing its downstream communication efforts with ED and non-ED channels. We show that these cross-channel communication efforts (i.e., the quality of communication between the manufacturer and non-ED resellers in the ED reseller’s territory) are important drivers of relationship conflict and commitment for ED resellers, while playing a limited role for non-ED resellers. These results underscore the need for manufacturers to understand the perspectives and behaviors of each individual channel within a multichannel system and manage their different distribution channel types as an integrated system. We find support for our hypotheses in a sample of 672 observations corresponding to different ED and non-ED resellers selling a manufacturer’s product-line across several European countries.     

EDI Adoption in New Zealand Firms

Abstract

Firms that have adopted Electronic Data Interchange (EDI) in their channel relationships are studied, with specific attention paid to the different roles that firms play in the EDI adoption process. Relationships are assessed by distinguishing between firms that adopted the technology in a proactive rather than a reactive role. The Political Economy Framework is used to provide a theoretical model to develop hypotheses about the factors that influence the adoption process for individual firms. A logistic regression model is employed to test the hypotheses. The results indicate that a number of organisational, environmental, as well as inter-organisational variables influence the different roles that firms play in the adoption process.     

Performance in Product versus Service Supplier Relationships

ABSTRACT

Today's rapidly changing and competitive marketplace has forced channel members to devote increased attention and resources to providing consumers with a seamless delivery of products and services. This seamless delivery occurs through social integrative relationships between channel members, supported by the application of information technology. Achieving integration is a difficult task that may vary based on whether a product or a service is involved. This paper proposes that manufacturer integrative relationships with product suppliers may develop with lower levels of seamless delivery when compared to manufacturer integrative relationships with service suppliers. Further, the paper discusses how the application of information technology may impact manufacturer-supplier relationships and performance.     

Estimating Firm-Specific and Relational Properties in Interorganizational Relationships in Marketing

ABSTRACT

This research attempts to distinguish empirically between the potential influence of a manufacturer as compared to the influence of a manufacturer's salesperson over an industrial distributor. Given the existence of such a distinction, the scope of such influence is examined with regard to a distributor's business in eight different areas of potential influence: price, order quantity, product line, advertising and sales promotion, customer service, inventory, customer credit, and display. Data were collected from 412 industrial distributors in a marketing channel. The authors utilized regression analysis to distinguish between manufacturer and manufacturer salesperson power. Then, factor analysis was utilized to determine if the salesperson does have power over policy areas apart from that of the manufacturer. Research results suggest that the manufacturer's salesperson, compared with the manufacturer, possesses a different domain of power than does the manufacturer in a channel containing an industrial distributor.     

Control,Conflict and Satisfaction in International Channels:

This is a study of the relationship between foreign car-manufacturers and their respective agents in the "emerging" market of Saudi Arabia. The study takes the theories and findings about the relationship in advanced country domestic situations to see if they apply to a cross- country situation involving manufacturers from advanced countries and agents in a developing country. The study examines the extent of the manufacturer control over the dealer, the sources of that control and how each of these affect the level of conflict between the manufacturer and the dealer, and the dealer satisfaction, all from the dealer's perspective. Based on the literature, hypotheses were formulated and constructs developed using a questionnaire to which a relatively large sample of the dealers responded. Appropriate statistical tests of reliability and validity were conducted and thereafter simple Pearson correlations were calculated to test the hypotheses. Unlike in most advanced country studies, manufacturers were found to practice little control over their agents, nor was control found to be associated with the use of coercive and non-coercive measures by the manufacturers. But other facets of the relationship were found to be generally similar to other studies. Conflict was found to relate positively to the use of coercive measures by the manufacturer. Dealer satisfaction was found to relate positively to the use of non-coercive measures and negatively to the level of conflict and the use of coercive measures. The study concludes that the stick and carrot philosophy that may work in the West, does not work in the Middle East, just as others have surmised.