Marketing channel length in rural India

Abstract

PurposeThe aim of this paper is to understand the influence of the external environment and rural retailer purchase preference on the length of channels in rural areas in India.Design/methodology/approachThe methodology involved the survey of over 686 rural retailers in 103 villages across rural India, to trace the structure of distribution channels.FindingsThe correlation analysis and ANOVA test show that channel length varies in regions based on variation in the external environment. Village retailer with his unique buying preferences also influences the distribution channel.Research limitations/implicationsThe study involves only two product categories and ignores the evolutionary aspect of distribution channels.Practical implicationsThe study provides pointers to marketers interested in gaining access to rural markets.Originality/valueThe paper is one of the first empirical studies which focuses on understanding the distribution channel in rural areas, by starting from the village retailer onwards to the channel intermediaries in the nearest small town.