Abstract:
The aim of the study was to examine determinants of indirect distribution channels of
Ethiotelecom Jimma region. A cross-sectional research design involving mixed method of both
qualitative and quantitative (concurrent research design) was used. One hundred eighty five
participants were selected for the study using proportionate stratified random sampling. The
data was collected through standardized Likert scales format and interviews. Mean, SD,
percentage, and multiple linear regressions were done for the quantitative data and data
collected through interview was analyzed by using thematic analysis. The result of the study
shows that, approximately half respondents were agreed that, the main reason that distributors
are terminating their distribution agreement were lesser commission paid by company to private
distributors, restrictive agreement following penalty, and high target of SIM cards and absence
of demand based allocation of voucher cards, The result of multiple linear regressions indicates
that, shorter time in sales of higher denomination, restrictive agreement following penalty,
assignment of over target, distributors consideration of distribution task as a secondary
business, lesser commission paid by company to private distributors, and were found to be
Statistically significant determinants of indirect distribution channels of Ethio telecom Jimma
region. The result also supported by qualitative result of the study. Therefore, the researcher
recommends that, Ethio telecom should implement distribution channel management approaches
appropriately and continuously as an indispensable tool to build long lasting relationships with
the channel members, provided the credit facility and training, support for distributors, to
maintain sustainable sales performance.
