Modelling channel partners’ opinions to achieve value-based relationship : An empirical study using RIDIT algorithm

Subhajit Bhattacharya (Department of Marketing Management, Management Development Institute Murshidabad, Raghunathganj, India)

Journal of Indian Business Research

ISSN: 1755-4195

Publication date: 19 August 2019

Abstract

Purpose

The present competitive marketing environment demands effective role of distribution channels to create and develop a value-based infrastructure where companies can easily distribute their products into the consumers’ market. Relationship bonding between the channel partners and the company strengthens marketing efficiencies of the distribution function, which is supported by policies of the companies relating to joint business actions and value sharing. Both the tangible functional value and emotional functionalities play a vital role in the continuous success and the growth of distribution channel. The purpose of this paper is to understand the value-based distribution channel relationship for greater channel equity in fast-moving consumer goods (FMCG) sector.

Design/methodology/approach

The present study used a survey design to collect data from 156 FMCG channel members selected through stratified random sampling procedure. A five-point Likert-type scale was personally administered to obtain participants’ responses. Data were analysed using the Relative to an Identified Distribution (RIDIT) approach.

Findings

The findings of the current research paper have demonstrated that in the current competitive marketing environment, only the functional values are not enough. This research paper identifies that there is a strong need of emotional touch and linkages which leads to a symbiotic channel–company relationship and commitments in FMCG industry.

Originality/value

The present research is an original and innovative thought process of evaluating factors influencing the value-based distribution channel relationship for greater channel equity pertaining to FMCG industry by using the RIDIT approach.

Keywords

Acknowledgements

Conflict of interests: The author declares that there is no conflict of interests regarding the publication of this article.

Citation

Bhattacharya, S. (2019), "Modelling channel partners’ opinions to achieve value-based relationship : An empirical study using RIDIT algorithm", Journal of Indian Business Research, Vol. 11 No. 3, pp. 220-243. https://doi.org/10.1108/JIBR-04-2017-0037

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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