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Resource Allocation Behavior In Conventional Channels

Erin Anderson, Leonard M. Lodish, Barton A. Weitz

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This exploratory study assesses the impact of variables associated with a financial portfolio model (marginal returns, growth, synergy, and uncertainty) and characteristics of the channel relationship (power, organizational climate, and communications) on the selling time allocated by 71 independent sales agencies to the principals they represent. The results indicate that the time allocated to principals is consistent with a normative microeconomic model; however, aspects of the channel relationship, particularly communications, participation, and feedback, also influence resource allocations.