As interest rates increase, financial terms of sale become a more important source of funds for customers and a more expensive cost for suppliers. As each party seeks to satisfy self-interest, channel conflict may occur. The authors explore terms both normatively and positively. This discussion leads to managerial implications useful for avoiding channel conflict.
Get full access to this article
View all access options for this article.
References
1.
AldersonWroe (1965), Dynamic Marketing Behavior. Homewood, Illinois: Richard D. Irwin, Inc.
2.
AndersonPaul F. (1979), “The Marketing Management/Finance Interface,” in 1979 Educators' Conference Proceedings. Chicago: American Marketing Association, 325–9.
3.
AtkinsJ. and KimY. (1977), “Comment and Correction: Opportunity Cost in the Evaluation of Investment in Accounts Receivable,” Financial Management, 6 (Winter), 71–4.
4.
BeranekWilliam (1963), Analysis for Financial Decisions. Homewood, Illinois: Richard D. Irwin, Inc.
5.
Business Week (July 23, 1979), “Signs of a Slow-Pay Syndrome,” 60.
6.
DylE. (1977), “Another Look at the Evaluation of Investment in Accounts Receivable,” Financial Management, 6 (Winter), 66–70.
7.
FoulkeRay Anderson (1941), The Sinews of American Commerce. New York: Dun and Bradstreet.
8.
GuiltinanJoseph P. (1976), “Risk Averse Pricing Policies: Problems and Alternatives,” Journal of Marketing, 40 (January), 10–15.
9.
HillNed C. and RienerKenneth D. (1979), “Determining the Cash Discount in the Firm's Credit Policy,” Financial Management, 8 (Spring), 68–73.
10.
HuntShelby D. and NevinJohn R. (1974), “Power in a Channel of Distribution: Sources and Consequences,” Journal of Marketing Research, 11 (May), 186–93.
11.
KimY. and AtkinsJ. (1978), “Evaluating Investments in Accounts Receivable: A Maximizing Framework,” Journal of Finance, 33 (May), 405–12.
12.
LevyMichael (1980a), “Toward an Optimal Customer Service Package,” Journal of Business Logistics, 2 (forthcoming).
13.
LevyMichael (1980b), “Diminishing Marginal Returns for Customer Service,” International Journal of Physical Distribution and Materials Management (forthcoming).
14.
LuschRobert F. (1976), “Sources of Power: Their Impact on Intrachannel Conflict,” Journal of Marketing Research, 8 (November), 382–90.
15.
LuschRobert F. (1977), “Franchise Satisfaction: Causes and Consequences,” International Journal of Physical Distribution, 7 (February), 128–40.
16.
MonroeKent B. and Della BittaAlbert J. (1978), “Models for Pricing Decisions,” Journal of Marketing Research, 15 (August), 413–28.
17.
SternLouis W. (1969), Distribution Channels: Behavioral Dimensions. Boston: Houghton Mifflin Co.
18.
SternLouis W. and RonaldH. Gorman, (1969), “Conflict in Distribution Channels: An Exploration,” in Distribution Channels: Behavioral Dimensions, SternLouis W., ed. Boston: Houghton Mifflin Co., 156–75.
19.
SternLouis W. and RonaldH. Gorman and HeskettJ. L. “Conflict Management in Interorganizational Relations,” In Distribution Channels: Behavioral Dimensions, SternLouis W., ed. Boston: Houghton Mifflin Co., 288–305.
20.
WaliaT. (1977), “Explicit and Implicit Cost of Changes in the Level of Accounts Receivable and the Credit Policy Decision of the Firm,” Financial Management, 6 (Winter), 75–8.
21.
WrightsmanD. (1972), “Optimal Credit Terms for Accounts Receivable,” Quarterly Review of Economics and Business, 9 (Summer), 59–66.
