Creating Channel Dependence through the Use of Minimum Order Quantities

Channel control has become increasingly more important to both marketing practitioners and researchers. The manufacturers' ability to influence the marketing policies, strategies, and tactics of other channel members has been recognised as a critical element in the organisation's survival and effectiveness. However, current trends in the economy have made channel control by the manufacturer increasingly difficult. One technique that can help increase manufacturer control by increasing channel dependence is the use of minimum order quantities.