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.
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1 December 2004
Research Article|
December 01 2004
Understanding industrial distributors' expectations of benefits from relationships with suppliers
Amit K. Ghosh;
Amit K. Ghosh
Associate Professor of Marketing, James J. Nance College of Business Administration, Cleveland State University, Cleveland, Ohio, USA
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W. Benoy Joseph;
W. Benoy Joseph
Associate Dean and Professor of Marketing, James J. Nance College of Business Administration, Cleveland State University, Cleveland, Ohio, USA
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John T. Gardner;
John T. Gardner
Associate Professor of Marketing at the College of Business Administration, SUNY at Brockport, Brockport, New York, USA
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Sharon V. Thach
Sharon V. Thach
Professor of Marketing at the College of Business Administration, Tennessee State University, Nashville, Tennessee, USA
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Publisher: Emerald Publishing
Online ISSN: 2052-1189
Print ISSN: 0885-8624
© Emerald Group Publishing Limited
2004
Journal of Business & Industrial Marketing (2004) 19 (7): 433–443.
Citation
Ghosh AK, Benoy Joseph W, Gardner JT, Thach SV (2004), "Understanding industrial distributors' expectations of benefits from relationships with suppliers". Journal of Business & Industrial Marketing, Vol. 19 No. 7 pp. 433–443, doi: https://doi.org/10.1108/08858620410564382
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