A typology of distribution channel systems: a contextual approach

Abstract

The channels literature lacks a classification scheme for channel systems which can provide insights to their development and management. Consideration of the channel context is essential in marketing products or services in foreign markets. Develops a new taxonomy of channel systems based on three channel contextual factors ‐ environmental uncertainty, value‐added in the downstream channel, and replaceability of suppliers ‐ and discusses each cell in terms of the level of interfirm commitment. The new taxonomy shows that the behavioural process varies with the channel context and high commitment between channel members is appropriate only in certain channel contexts.

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