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What are the major factors affecting the scope and frequency of channel member performance evaluation? Please explain in more detail with at least 3 factors
What are the major factors affecting the scope and frequency of channel member performance evaluation? Please explain in more detail with at least 3 factors.
Expert Solution
Main factors that affect the scope and frequency of channel member performance evaluation are-
- Manufacturer's control over channel members - degree of control over channel members by the manufacturer play a Major role in determining the scope and frequency of performance evaluation , as higher will be the degree of control of manufacture , easier it will be to conduct comprehensive performance.
- Nature of product - products which are technical and complex in nature , tend to offer scope of channel distribution at broader level and vice versa . Performance of channel distribution which involves distribution of products at high unit value which are evaluated more carefully.
- Number of channel member - intensity of distribution is an important factor for performace evaluation of channel members. Manufacturer using intensive distribution evaluation of channel member is very crucial. And companies which are involved in exclusive distribution channel are included fewer member at each level of channel giving greater results
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