| Abstract: | The study sought to assess the effectiveness of channels on the sales performance of car
sales companies in Ethiopia. The study was guided by the following specific objectives:
To show in what way and the extent in which, distribution channel effectiveness affects
the sales volume of the company, and to point out the significant factors influencing the
distribution channel efficiency in Ethiopia. A distribution channel consists of the set of
people and companies involved in the transfer of title to a product as the product moves
from distributers to final customers or users. Diverse distribution channels exist today, A
company wants a distribution channel that not only meets customers’ needs but also
provides an edge on competition, and for the purpose of this study, an organized approach
is required which comprises of three decisions: (i) specifying the design of distribution
(ii) accessing the channel administration (iii) determining the technology use by channels.
The study focused on the company executives, staff of marketing department, sales
executives, distribution channels owners, and customers of some organizations from
selected in Addis Ababa. The study adopted a descriptive survey design. Purposive
judgmental proportion technique was carried out to arrive at a representative sample for
the study and 113 willing were found to participate in the study and taken as a target for
the sample size. The researcher used primary source of data which was obtained through
a semi-structured questionnaire. The data was analyzed using the Statistical Package for
Social Science (SPSS) version 23 and the t-Test statistical tool was employed to test the
significance between the observed variables and the underlying construct. The findings
revealed that the design and administration of channels of distribution, affects sales of
product, and the technology use by sales companies and channel has no much effect on
the sales volume of vehicles. Based on the underlying assumption, the following were
recommended for the study; that the channel members should have good working
procedures, management and administration to carry efficient marketing and sales of
vehicles. |
