How Does Communication Strategy Affect Channel Member Performance?
Benefits of Communication. A key question that arises in managing channel systems is, What strategies should companies use to enhance channel member performance? One strategy that managers have under their direct control is that of communication. Good communication not only promotes effective channel functioning but also has the potential to enhance channel member performance. Manufacturers that provide information to dealers can expect them to better understand their products, to more effectively coordinate marketing programs, and to more efficiently move their products to customers. At the same time, manufacturers that use information from dealers can learn more about local market situations and adjust their programs and products to better meet customer needs. Two Models of Communication. Our research examines the role of communication strategy in managing channel member performance. We compare two models of how communication can affect performance. The first, called the moderator mo
