This exploratory study assesses the impact of variables associated with a financial portfolio model (marginal returns, growth, synergy, and uncertainty) and characteristics of the channel relationship (power, organizational climate, and communications) on the selling time allocated by 71 independent sales agencies to the principals they represent. The results indicate that the time allocated to principals is consistent with a normative microeconomic model; however, aspects of the channel relationship, particularly communications, participation, and feedback, also influence resource allocations.
Get full access to this article
View all access options for this article.
References
1.
BensonJ. Kenneth (1975), “The Interorganizational Network as a Political Economy,”Administrative Science Quarterly, 20 (June), 229–49.
2.
BrownJames, and DayRalph (1981), “Measures of Manifest Conflict in Distribution Channels,”Journal of Marketing Research, 18 (August), 263–74.
3.
CampbellDonald T. (1955), “The Informant in Quantitative Research,”The American Journal of Sociology, 60, 339–42.
4.
ChakravartiDipanker, MitchellAndrew, and StaelinRichard (1981), “Judgement Based Marketing Decision Models: An Experimental Investigation of the Decision Calculus Approach,”Management Science, 25 (March), 251–63.
5.
ChurchillGilbert A.Jr. (1979), “A Paradigm for Developing Better Measures of Marketing Constructs,”Journal of Marketing Research, 16 (February), 64–73.
6.
CookKaren (1977), “Exchange and Power in Interorganizational Relations,”Sociological Quarterly, 18, 62–82.
7.
El-AnsaryAdel I., and SternLouis W. (1972), “Power Measurement in the Distribution Channel,”Journal of Marketing Research, 9 (February), 47–52.
8.
EliashbergJehoshua, and MichieDonald A. (1984), “Multiple Business Goals Sets as Determinants of Marketing Channel Conflict: An Empirical Study,”Journal of Marketing Research, 21 (February), 75–88.
9.
EmersonRichard M. (1962), “Power-Dependence Relations,”American Sociological Review, 27 (February), 32.
10.
EtgarMichael (1976a), “Channel Domination and Countervailing Power in Distributive Channels,”Journal of Marketing Research, 13 (August), 254–62.
11.
EtgarMichael (1976b), “Effects of Administrative Control on Efficiency of Vertical Marketing Systems,”Journal of Marketing Research, 13 (February), 12–24.
12.
EtgarMichael (1977), “Channel Environment and Channel Leadership,”Journal of Marketing Research, 14 (February), 69–76.
13.
EtgarMichael (1979), “Sources and Types of Intrachannel Conflict,”Journal of Retailing, 55 (Spring), 61–78.
14.
EvansWilliam T. (1969), “Toward a Theory of Interorganizational Relations,” in Distribution Channels: Behavioral Dimensions, SternL. W., ed. Boston: Houghton-Mifflin Company227–52.
15.
FrazierGary (1983), “On the Measurement of Interfum Power in Channels of Distribution,”Journal of Marketing Research, 20 (May), 158–66.
16.
FrazierGary (1984), “The Interfirm Power-Influence Process Within a Marketing Channel,” in Research in Marketing, Vol. 7, ShethJagdish, ed. New York: JAI Press, Inc.
17.
FudgeW. K., and LodishLeonard M. (1977), “Evaluation of the Effectiveness of a Model Based Salesman's Planning System,”Interfaces, 8 (November), 97–106.
18.
GrabnerJohn, and RosenbergLarry (1969), “Communications in Distribution Channel Systems,” in Distribution Channels: Behavioral Dimensions, SternL. W., ed. Boston: Houghton-Mifflin Company,227–52.
19.
GuiltinanJoseph, RejabIsmail, and RodgersWilliam (1980), “Factors Influencing Coordination in a Franchise Channel,”Journal of Retailing, 56 (Fall), 41–58.
20.
HuntShelby, and NevinJohn (1974), “Power in a Channel of Distribution: Sources and Consequences,”Journal of Marketing Research, 11 (May), 186–93.
21.
LodishLeonard M. (1971), “CALLPLAN: An Interactive Salesmen's Call Planning System,”Management Science, 18 (December), P25–P40.
22.
LodishLeonard M. (1980), “A User-Oriented Model for Sales Force Size, Product, and Market Allocation Decisions,”Journal of Marketing, 44 (Summer), 70–78.
23.
LouviereJordan J., and WoodworthGeorge (1983), “Design and Analysis of Simulated Consumer Choice or Allocation Experiments: An Approach Based on Aggregate Data,”Journal of Marketing Research, 20 (November), 350–67.
24.
LuschRobert F. (1976a), “Sources of Power: Their Impact on Intrachannel Conflict,”Journal of Marketing Research, 13 (November), 382–90.
25.
LuschRobert F. (1976b), “Channel Conflict: Its Impact on Retailer Operating Performance,”Journal of Retailing, 52 (Summer), 3–12, 89–90.
26.
MaddalaG. S. (1977), Econometrics.New York: McGraw-Hill Book Company.
27.
MarkowitzHarry (1954), Portfolio Selection: Efficient Diversification of Investments.New Haven, CT: Yale University Press.
28.
NaertPhilippe A., and BultezAlain (1973), “Logically Consistent Market Share Models,”Journal of Marketing Research, 10 (August), 334–40.
29.
NakanishiMasao, and CooperLee G. (1982), “Simplified Estimation Procedure for MCI Models,”Marketing Science, 1 (3), 314–22.
30.
NisbettRichard, and RossLee (1980), Human Inference: Strategies and Shortcomings of Social Judgment.Englewood Cliffs, NJ: Prentice-Hall, Inc.
31.
NovickHarold J. (1982), “The Case for ‘Reps’ vs. Direct Selling: Can Reps Do It Better?”,Industrial Marketing, 10 (March), 93–8.
32.
OuchiWilliam G. (1980), “Markets, Bureaucracies, and Clans,”Administrative Science Quarterly, 25 (March), 129–41.
33.
PhillipsLynn (1981), “Assessing Measurement Error in Key Informant Reports: A Methodological Note on Organizational Analysis,”Journal of Marketing Research, 18 (November), 395–415.
34.
ProvenKeith G., BeyerJanice M., and KruytboschCarlos (1980), “Environmental Linkages and Power in Resource-Dependence Relationships Between Organizations,”Administrative Science Quarterly, 25 (June), 200–25.
35.
ReveTorger, and SternLouis W. (1984), “The Relationship Between Interorganizational Form, Transaction Climate, and Economic Performance in Vertical Interfirm Dyads,” mimeo.
36.
RosenbergLarry, and SternLouis (1971), “Conflict Measurement in the Distribution Channel,”Journal of Marketing Research, 8 (November), 437–42.
SchmidtStuart A., and KochanThomas A. (1977), “Interorganizational Relationships: Patterns and Motivators,”Administrative Science Quarterly, 22 (June), 220–34.
39.
SeidlerJohn (1974), “On Using Informants: A Technique for Collecting Quantitative Data and Controlling Measurement Error in Organization Analysis,”American Sociological Review, 39 (December), 816–31.
40.
SibleyStanley, and Kenneth TeasR. (1979), “The Manufacturer's Agent in Industrial Distribution,”Industrial Marketing Management, 8 (Fall), 286–92.
41.
SimonHerbert (1957), Models of Man.New York: John Wiley & Sons, Inc.
42.
SternLouis W., and El-AnsaryAdel I. (1982), Marketing Channels, 2nd ed.Englewood Cliffs, NJ: Prentice-Hall, Inc.
43.
WebsterFredrick E.Jr. (1976), “The Role of the Industrial Distributor,”Journal of Marketing, 40 (July), 10–16.