Understanding industrial distributors' expectations of benefits from relationships with suppliers

Understanding industrial distributors' expectations of benefits from relationships with suppliers Due to the increased domination of industrial sales channels by distributors, suppliers must develop strong relationships with industrial distributors in order to succeed in new markets. Initiating partnering relationships with distributors in new markets, however, entails significant risks and commitments with the prospect of substantial long‐term rewards. To help suppliers assess and select distributor partners, this study focuses on the starting‐point of the relationship by exploring industrial distributors' expectations of benefits. A nationwide survey of US industrial distributors showed that distributors expect financial and competitive differentiation benefits with greater differentiation benefits inferred to lead to fewer financial benefits. Several observable distributor characteristics can be used by suppliers to conduct preliminary assessments of distributor expectations and thereby prepare for a healthy future relationship. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business & Industrial Marketing Emerald Publishing

Understanding industrial distributors' expectations of benefits from relationships with suppliers

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0885-8624
D.O.I.
10.1108/08858620410564382
Publisher site
See Article on Publisher Site

Abstract

Due to the increased domination of industrial sales channels by distributors, suppliers must develop strong relationships with industrial distributors in order to succeed in new markets. Initiating partnering relationships with distributors in new markets, however, entails significant risks and commitments with the prospect of substantial long‐term rewards. To help suppliers assess and select distributor partners, this study focuses on the starting‐point of the relationship by exploring industrial distributors' expectations of benefits. A nationwide survey of US industrial distributors showed that distributors expect financial and competitive differentiation benefits with greater differentiation benefits inferred to lead to fewer financial benefits. Several observable distributor characteristics can be used by suppliers to conduct preliminary assessments of distributor expectations and thereby prepare for a healthy future relationship.

Journal

Journal of Business & Industrial MarketingEmerald Publishing

Published: Dec 1, 2004

Keywords: Distributors; Channel relationships; Supplier relations

References

  • Relationship marketing defined? An examination of current relationship marketing definitions
    Harker, M.J.
  • Customer‐perceived value in industrial contexts
    Lapierre, J.
  • Defining relationship marketing: an international perspective
    Palmer, A.
  • Modeling the determinants of customer satisfaction for business‐to‐business professional services
    Patterson, P.G.; Johnson, L.W.; Spreng, R.A.
  • Thinking about relationship marketing: where are we now?
    Rao, S.; Perry, C.
  • Bridging the gap between suppliers and customers through relationship promoters: theoretical considerations and empirical results
    Walter, A.; Gemünden, H.G.
  • Constructing thick descriptions of marketers' and buyers' decision processes in business‐to‐business relationships
    Woodside, A.G.; Wilson, E.J.

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