Accounting & Marketing

The Paradox of Variables’ Effects on Channel Type

Abstract

Mostafa Bakr and Henri Masson

Purpose: This study aims to offer management with a structured decision-making approach to manage the conflicting impacts of different variables on the distribution channel type.
Problem statement: Different variables may possibly have opposite impacts on channel’s type. When significant variables trigger the employment of direct channels, other significant variables may trigger indirect channels for the same product, leading to high complexity in channel decision making.
Design methodology approach: By means of a comprehensive survey covering 1400 retailers in Egypt and targeting three packaged milk categories, Structural Equation Modeling was used to group different variables, Logistic Regression was appliedto calculate the standardized beta coefficient of group variables.
Findings: Not all significant variables are equally important. Shelf life was found to be the most important variable with the highest standardized beta coefficient across 13 significant variables affecting distribution channel type.