| Abstract: | The functional approach to the design of marketing channels has a long history in the marketing literature. In more recent years, the functional approach has been all but forgotten as the transactions cost approach has come into fashion. Yet, the functional approach offers severl significant advantages over transactions cost analysis, especially when the number of functions is condensed. Using a succint summary of the functions, produced through factor analysis, this paper examines the relationship between the functional performance capabilities of U.S. wholesalers used in the channel structure of foreign manufacturers. A statistically significant relationship was found, thus providing evidence of the role of functions in determining channel structure. |
