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Abstract
Distribution channel decisions are among the most important decisions that management
faces today, as a result, this study aimed to empirically investigate the effects of distribution
channel management on the sales performance of Ethio Telecom North Western region from six
channel management components namely: channel communication, channel motivation, channel
regulation, channel commitment, channel cooperation and channel conflict. A theoretical
framework was used as a guideline to test the effect of these variables on sales performance from
the relevant literatures. Stratified sampling technique was employed and a sample of 340
channel members was used to collect the data. However, only 312 channel members responded
to the questionnaires and hence, the response rate was 91.76 %. Besides, descriptive statistical
tools like percentage, mean and standard deviation were used to illustrate the demographic
characteristics of the respondents. Inferential statistical methods like those that correlation
analysis was used to assess the relationship between distribution channel management
components and sales performance. Multiple linear regression analysis was also employed to
examine the influence of channel management on sales performance by using primary data
collected through five scale Likert questionnaires. Based on the findings of the study, all
distribution channel management components have a positive correlation with sales
performance. The multiple linear regression analysis result revealed that all explanatory
variables have an impact on sales performance. This indicated that distribution channel
management determines the sales performance of Ethio Telecom. Therefore, Ethio Telecom
should implement distribution channel management approaches appropriately and continuously
as an indispensable tool to build long lasting relationships with the channel members to achieve
and maintain sustainable sales performance. |
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