Factors Influencing the Choice of Product Distribution Channels in Kenya
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Date
1996
Authors
Chege, Jonathan Maina
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
This study set out to identify factors that affect the
choice of p~oduct distribution channels in Kenya and to quantify
their relative importance. Alternative channel selection models
were studied theoretically and estimated using linear and
nonlinear regression methods. The models were fitted to survey
data collected from manufacturing companies mainly from the
Nairobi area. The data collection instrument was a self-administered
questionnaire, which was completed and returned by
marketing and sales managers of the companies which had been
selected for the study.
Estimation results show that the probability of choice of
an integrated or direct product distribution channel is
positively correlated with product order size and with product
order frequency, but a negative association is also found with
respect to company size. However the probability of selecting a
direct product distribution channel is insignificantly correlated
with suitability of existing distribution channels, product
complexity, product standardization, product age, degree of
customer concentration and government policy.
On the basis of these findings, it is recommended that the
business legal framework be changed to allow manufacturing
companies flexibility in choosing the most appropriate channel
structure for their markets. Care however should be taken to
guard against creating a situation of unfair competition in the
distribution of products.
The areas identif ied for future research include ref inements
of the theoretical models developed in the thesis, improvements
in the sampling procedures used, widening of the geographic
coverage of the sample, and investigation of product distribution
channels among small scale and export-orlented enterprise$ in
urban and rural areas.
Description
Department of Business Administration, 119p. 1996.