Channel Domination and Countervailing Power in Distributive Channels

Abstract

Three hypotheses are discussed: that the power of a channel leader is a result of his control over some power sources, and of dependency of other channel members upon him, and that such power can be offset by the countervailing power available to the channel members. Results of an empirical study which tested and confirmed these hypotheses in a conventional channel framework are presented. Several implications are derived which pertain to channel management decisions and proper selection of channel control mix.