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The Channel Intermediary Selection Decision: A Model and an Application

Author

Listed:
  • V. Kasturi Rangan

    (Graduate School of Business Administration, Harvard University, Boston, Massachusetts 02163)

  • Andris A. Zoltners

    (J. L. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois 60201)

  • Robert J. Becker

    (Digital Equipment Corporation, 150 Flanders Road, Westboro, Massachusetts 01581)

Abstract

Distribution channel design is a complex decision involving (a) the strategic choice of the appropriate channel structure, and (b) the tactical selection of the appropriate intermediaries. This paper presents a decision framework and a model to aid management in the tactical selection of the channel intermediaries and the target markets they should serve. The proposed model-based decision approach is illustrated with an actual industrial marketing application. The optimal intermediary network selected by the model is compared to an intuitive network recommended by sales management.

Suggested Citation

  • V. Kasturi Rangan & Andris A. Zoltners & Robert J. Becker, 1986. "The Channel Intermediary Selection Decision: A Model and an Application," Management Science, INFORMS, vol. 32(9), pages 1114-1122, September.
    • Handle: RePEc:inm:ormnsc:v:32:y:1986:i:9:p:1114-1122
    DOI: 10.1287/mnsc.32.9.1114
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    Cited by:

    1. Baiyee-Mbi, Agbor-Baiyee & Mazzocco, Michael A., 2005. "Comparative Evaluation of the Performance of Spans of Control Designs in Grain Supply Chains," 2005 Annual meeting, July 24-27, Providence, RI 19313, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Krafft, Manfred & Goetz, Oliver & Mantrala, Murali & Sotgiu, Francesca & Tillmanns, Sebastian, 2015. "The Evolution of Marketing Channel Research Domains and Methodologies: An Integrative Review and Future Directions," Journal of Retailing, Elsevier, vol. 91(4), pages 569-585.
    3. Zanakis, Stelios H. & Mandakovic, Tomislav & Gupta, Sushil K. & Sahay, Sundeep & Hong, Sungwan, 1995. "A review of program evaluation and fund allocation methods within the service and government sectors," Socio-Economic Planning Sciences, Elsevier, vol. 29(1), pages 59-79, March.
    4. Kinshuk Jerath & Serguei Netessine & Senthil K. Veeraraghavan, 2010. "Revenue Management with Strategic Customers: Last-Minute Selling and Opaque Selling," Management Science, INFORMS, vol. 56(3), pages 430-448, March.
    5. Gholamreza Jandaghi & Kamran Shahanaghi & Hamid Reza Irani, 2011. "A Framework for Selection of Intermediary in Marketing Channel," BRAND. Broad Research in Accounting, Negotiation, and Distribution, EduSoft Publishing, vol. 2(2), pages 51-62, October.

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