Understanding industrial distributors' expectations of benefits from relationships with suppliers

Amit K. Ghosh (Associate Professor of Marketing, James J. Nance College of Business Administration, Cleveland State University, Cleveland, Ohio, USA)
W. Benoy Joseph (Associate Dean and Professor of Marketing, James J. Nance College of Business Administration, Cleveland State University, Cleveland, Ohio, USA)
John T. Gardner (Associate Professor of Marketing at the College of Business Administration, SUNY at Brockport, Brockport, New York, USA)
Sharon V. Thach (Professor of Marketing at the College of Business Administration, Tennessee State University, Nashville, Tennessee, USA)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Publication date: 1 December 2004

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.

Keywords

Citation

Ghosh, A., Benoy Joseph, W., Gardner, J. and Thach, S. (2004), "Understanding industrial distributors' expectations of benefits from relationships with suppliers", Journal of Business & Industrial Marketing, Vol. 19 No. 7, pp. 433-443. https://doi.org/10.1108/08858620410564382

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Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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