Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/9162
Title: The role of program fairness in asymmetrical channel relationships
Authors: Gu, FF 
Wang, DT
Keywords: Channel relationship
Fairness heuristic theory
Joint sales program
Issue Date: 2011
Publisher: Elsevier
Source: Industrial marketing management, 2011, v. 40, no. 8, p. 1368-1376 How to cite?
Journal: Industrial marketing management 
Abstract: Managing distributor compliance with manufacturer-initiated programs is critical to both program success and relationship enhancement. This study examines how a manufacturer might better motivate distributors with varying levels of dependence. Previous research suggests that two variables influence distributor compliance: economic incentives and dependence dynamics. Drawing from fairness heuristic theory, this study extends previous research by investigating the role of fairness in affecting compliance and long-term relationships. The authors observe the contingent effect of fairness along various levels of distributor dependence. In the context of a naturally occurring program, the authors collect data from a focal manufacturer's distribution channel and find that (1) fairness perceptions have significant impacts on both compliance and relational outcomes, (2) the efficacy of program fairness declines as distributor dependence increases, and (3) distributor dependence increases the effect of economic incentives on compliance. The authors discuss the theoretical and managerial implications of these findings.
URI: http://hdl.handle.net/10397/9162
ISSN: 0019-8501
EISSN: 1873-2062
DOI: 10.1016/j.indmarman.2011.07.005
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