DETERMINANTS OF INDIRECT DISTRIBUTION CHANNEL SALES PERFORMANCE: THE CASE OF ETHIO-TELECOM’S DISTRIBUTORS, SUB-DISTRIBUTORS AND RETAILERS OPERATING IN ADDIS ABABA

Abstract

This study emphasizes the determinants of indirect distribution channels sales performance in the cases of Ethio-telecom’s distributors, sub-distributors and retailers operating in Addis Ababa by considering 14 independent variables; motivational factors, commitment, distribution flexibility, cooperation, relationship, esprit de corps, trust, support, communication, coordination, ethical behavior, punishment fairness, conflict and regulation. The study was performed in quantitative and qualitative research approaches. To reveal the determinants of sales performance of indirect distribution channel, descriptive and explanatory research design were used. For selecting sample respondents’ disproportionate stratified sampling was used. The data analysis was performed by inferential and descriptive statistics. The data analysis was processed by IBM SPSS statistical software version 20. The total sample size was 267 and 280 questionnaires were distributed within six zones. Out of which, 223 questionnaires were returned as 13 distributors, 45 Sub-distributors and 165 retailers respondents with a response rate of 100%, 85% and 82%, respectively. All determinant factors of sales performance have a positive correlation with sales performance. And only conflict has a positive but not statistically significant correlation with sales performance. A linear combination of all the independent variables considered under the study predicts the variance in the dependent variable sales performance. The ANOVA test result showed that, the value of R and R2 obtained under the model summary part was statistically significant. The multiple linear regression analysis revealed that, 9 of 14 explanatory variables (motivational factors, commitment, distribution flexibility, cooperation, relationship, trust, support, communication and coordination) have a statistically significant relationship for predicting sales performance of indirect channels distribution. The other 5 (Esprit de corps, Ethical Behavior, Punishment Fairness, Regulation and Conflict) of the 14 predictor variables are not statistically significant for predicting sales performance of IDC. The researcher concluded that the IDC of Ethio-Telecom is significantly determined by these 14 factors of sales performance.