Power-base Research in Marketing Channels: A Narrative Review

Psychology and Marketing, 1984

There have been numerous attempts to measure power in marketing channels, most relying on perceptions reported by the channel entities. Such measures have been shown to suffer from considerable bias (Phillips 1981). In particular, perceptions from different sides of a channel dyad may not be in close agreement. This study attempts to identify some consequences of such a perceptual disparity.

Journal of Marketing, 1984

This review article develops an integrated overview of the present status of the theory of power and conflict in marketing channels. It includes a presentation of the conceptual foundation provided by behavioral science and a report on empirical contributions of the marketing literature. Since there appear to be many problems with the empirical work done in the ar.ea, both methodological and conceptual, the article also presents some proposals for clarification and theoretical development. F OR about a decade the phenomena of power and conflict in channels of distribution have been given rather regular, empirical attention in the marketing literature, both separately and as a joint occurrence (e.g.,

1995

How relationship marketing is transforming the manner in which channel relationships are structured and managed is a highly important topic to practitioners and academics alike. Barton Weitz and Sandy Jap (1995 [this issue]) address this topic in an innovative and thought-provoking fashion, offering an article that will shape how we think about relationship marketing in channels of distribution in the future. Their discussion of the authoritative, contractual, and normative control mechanisms is informative. In particular, how norms affect the coordination of channel relationships is a question of vital concern. The argument that multiple control mechanisms are needed to coordinate activities in channel relationships is well taken. We concur with Weitz and Jap's evaluation of the limitations of transaction cost analysis and agency theory. No doubt, theories of interpersonal relationships offer considerable insight into how close channel relationships begin, progress, and sometimes terminate. We agree that qualitative research is urgently needed to sort out theoretical difficulties in the channels area. The propositions offered in the article are intriguing and deserving of empirical research. We could go on discussing the contributions of the article. Instead, the rest of this commentary will focus on three issues: (1) dual trends in channel relationships, (2) a typology of channel contexts, and (3) interfirm power and its use. DUAL TRENDS IN CHANNEL RELATIONSHIPS Weitz and Jap's objective was to outline the nature of the shift in channel research attention toward relationship marketing and its implications. They are no doubt correct when they describe the trend toward relational exchanges in many channel relationships. Examples abound of how different retailers, distributors, and manufacturers are de

2007

This thesis provides a conceptual framework of power in buyer-seller relationships. Power as the potential to influence (or resist) the actions of others is an integral part of social reality yet its conceptual development is limited in the inter-organisational literature, which is dominated by descriptive empirical studies. Gaps in the extant literature relate to; what constitutes power in buyer-seller relationships, its underpinning ontological position, what buyers and sellers seek to influence and what motivates them to use their power. To enable the complex nature of power to be empirically captured and to reduce ontological constraints, a mixed-method research design was used incorporating three phases. The first two phases were exploratory to allow the practitioner population to identify variables associated with the research questions. Based on these outputs a questionnaire was designed and used as the primary data collection method. Through factor analysis, the results prov...

Industrial Marketing Management, 2013

Power, as a significant dimension of relationships, continues to be of critical interest in the inter-organizational literature. This article assesses how different relationship types and strategic foci are related to buyers' and sellers' power priorities. Contributing to the discussion of buyer-seller power priority areas as commercial detail, operational issues, strategic issues and attitudes, the research focuses on the influence of relationship types (new, approved, preferred, partnership) on these power priorities in B2B contexts. This is important as partnerships do not simply emerge, but evolve over time suggesting that for both parties there is a period that is transitory. Through a survey of buyers and sellers (n = 355), the research highlights that as partnerships evolve, relational issues complement, but do not supersede, the focus on commercial and operational concerns. Furthermore, within partnerships, whilst sellers' focus on strategic issues increases, it is the total power that grows and the influence agenda is extended, rather than re-distributed. Additionally, it provides detail on how power priorities vary and are differentially distributed between buyers and sellers in different relationship types. This paper contributes to B2B partnership and power theories, challenging assumptions about relationships and adding weight to the increasing suggestion that relationship success is overplayed.

International Journal of Supply Chain Management, 2012

Managing distribution channel to fulfil the requirements of target market is a great challenge for producers. Individuals and organizations that take part in distribution channel perform different roles in the distribution channel. Based on their dissimilarities in the distribution channel, the channel members will have different levels of power and dependence in relation to each other. Previous research shows that there is an inverse relationship between power and dependence in distribution channels in western countries. This inverse relationship may however not hold within national cultures characterized by a collectivistic social system. There is a lack of research on power dependence relationships within international distribution channels that combine producers of industrial products and middlemen located within countries with a strong collectivistic social system with channel intermediaries located in western countries. This study addresses the gap in the literature and proposes a study that is going to contributes to the literature by investigating power dependence relationships among channel members in an industrial distribution channel in a national culture characterized by a South Asian developing country. By using an exploratory research design, it is shown how channel member's power and dependence is related to cooperation and trust among channel members and how cooperation and trust impact on the distribution chains' performance. The study provides valuable insights that marketers in South Asian countries can utilize to develop more focused marketing strategies which may enable them to compete more effectively in the increasingly competitive markets.

Journal of the Academy of Marketing Science, 1995

The interest of practitioners and academics in channel relationship management has shifted from corporate channel structures and relationships in conventional channels governed by use of power to relationships between independent firms involving contractual and normative control mechanisms. In this article, we identify several factors leading to this change of interest, propose a scheme for classifying channel relationship research based on control mechanisms, and suggest areas for future research involving the use of contractual and normative control mechanisms in conventional channel relationships.

Journal of Purchasing and Supply Management, 2011

This paper contributes to the operationalisation of the power construct in inter-organisational relationships through establishing what buyers and sellers seek to influence, and the relative priorities of these areas for both roles. Through semi-structured interviews and a questionnaire, four constructs emerge: Commercial Detail, Operational Issues, Strategic Issues and Attitudes. These are identified as the key power priorities that buyers and sellers seek to influence within their inter-organisational relationships. The results reveal that despite some differences in rank-order by role, only the Commercial Detail construct reveals significant differences between the buyers' and sellers' ability to influence. Despite this difference, the results provide evidence that buyers and sellers share more commonalities than differences. The research adds an important dimension to understanding organisational buyer behaviour, specifically contextualising power and the boundaries of buyers' and sellers' influence.

European Journal of Marketing, 2011

Purpose -The purpose of this paper is to examine the relationship between marketing strategy types -aggressive marketing, price leadership and product specialization strategies -and the extent of relationalism in marketing channels. Design/methodology/approach -Data were collected using a self-administered survey from managers responsible for marketing and channels management in US pharmaceutical firms. The responses to the questions capturing focal constructs were measured using a five-point Likert type scale. Data were analyzed using Principal Component Analysis and Structural Equation Modeling procedures. Findings -Aggressive marketing strategy and price leadership strategy are positively associated with the level of relationalism in marketing channels. In contrast, product specialization (focus) strategy is negatively associated with the level of relationalism in marketing channels. Originality/value -The relationship between marketing strategy and the emergent relationalism among marketing channel intermediaries is critical for the firm's ability to meet objectives. This relationship has not been investigated so far and, from a managerial perspective, managing marketing channels is critical for successful implementation of marketing strategies.

Journal of Business Research, 2003

This study extends understanding of the role of relational norms and governance mechanisms in marketing dyads. Heide and John (1992) explored the role of norms in structuring economically efficient relationships between independent firms. Specifically, they examined the relationship dyad from the perspective of a strong buyer facing a large number of small suppliers, finding that norms can serve as a governance mechanism, which safeguard against opportunistic behaviour in the presence of transaction-specific assets. However, questions remain as to the generalisability of these findings and the explanatory power of the relational norm perspective vis-à-vis other theories. The current research seeks to address these issues by focusing on the inverse and compliment of the study of Heide and John (1992) namely, it investigates the role of relational norms in the context of a strong supplier facing a large number of small buyers. Building on a theoretical foundation of transaction cost analysis (TCA), relational norms, and power-dependence theory, a set of hypotheses is proposed and operationalised in a multiple linear model. It is found that norms do not play a significant role in the research context, a result suggesting that mechanisms other than norms are at work. Alternative theoretical perspectives are offered to explain the results and managerial implications are discussed.