Determinants of Indirect Distribution Channels in Ethio-Telecom. The case of Ethiotelecom Jimma Region

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.