Distributor Power versus Manufacturer Power: The Customer Role

Abstract

Though distributor power should be affected by both manufacturer and customer market power, previous research on channel power has addressed only the manufacturer-middleman dyad. In an empirical study, the authors significantly extend previous research by demonstrating that customer market power as well as manufacturer market power has a role in determining distributor power. They also identify the specific dimensions of both manufacturer and customer market power that may affect distributor power. Finally, they discuss the implications of the findings for marketing management and future research.