Factors Influencing The Choice of a Supplier by Grocery Distributors

Examines the key criteria in choice of suppliers in the grocery trade. Identifies factors highlighted by existing studies – inter alia consumer value, tactical considerations, introductory marketing, prices and economic conditions and distribution channel requirements. Uses a survey of cash & carry and multiple buyers and the example of potato crisps as a basis for the article. Outlines the stages of the postal survey. Analyses results of questions asked in the survey – inter alia who makes the buying decision, reasons for stocking more than one brand, and reasons for choosing a particular supplier. Concludes that manufacturers must clearly identify where the supplier decision is made, and suppliers must continually monitor satisfaction amongst customers in a highly competitive market.