The Determinants of Commitment in the Distributor–Manufacturer Relationship

• Published in: Industrial marketing management 2001-04, Vol.30 (3), p.287-300
• Main Authors: Goodman, Lester E., Dion, Paul A.
• Format: Article
• Language: English
• Subjects: Client relationships; Distributors; Manufacturers; Marketing; Statistical analysis; Vendor supplier relations
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/S0019-8501(99)00092-9

Manufacturer–distributor marketing channels are changing today. Industrial distributors are carrying an increasing percentage of industrial goods. As a result of mergers and acquisitions, they are larger and more powerful. Product line exclusivity is less prevalent. These factors have constrained the ability of product line manufacturers to exercise power over their distributors. However, despite this environment, manufacturers still require commitment from their distributors in order to carry out a coordinated marketing program. This study surveyed high-tech distributors to develop a model of distributor commitment. Previously studied determinants, such as trust, dependence, communications, power, idiosyncratic investments, and continuity, were included in the research model as well as the marketing determinants product salability and ease of sale. The results demonstrated the importance of marketing variables in distributor commitment and that separations between marketing and behavioral variables tend to be artificial.