An expanded perspective on power in distribution channels: Strategies and implications

Abstract

Traditionally, research on channel relationships has focused on either manufacturer-distributor or distributor-consumer relationships. We argue that looking at either dyad exclusively is inadequate to have a full understanding of channel dynamics. This conceptual paper brings these two dyadic relationships together and we study the power issue in the channel. We look at access to information, rising consumer power and cost shifting as three major influences on power in distribution channels, and we analyse their effects on the triadic relationship (among the manufacturer, distributor, and consumer). We illustrate these concepts using numerous examples from industry.

Keywords:

• Distribution Channels
• Cost Shifting
• Consumer Power