Analyzing channel structures of business markets via the structure-output paradigm

Abstract While numerous conceptual ideas regarding distribution channel structures for industrial markets have been advanced in the marketing literature, there has been little integration of relevant theory and hardly any empirical testing of these ideas to confirm or define best managerial practice. We seek to integrate logistical and informational issues affecting channel structure into a single framework labeled as the Structure-Output Paradigm. This model regards the channel as the means by which services are provided to end-users and their needs as constituting the chief inputs into the channel design process. We test hypotheses derived from our framework using the PIMS database entailing businesses of major corporations serving both the European and North American markets. Our results provide strong empirical support for the influence of logistical and informational service outputs in industrial channel structures, and underscores the pivotal role of the end-user in designing industrial channels.

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