Opportunism in Distribution Channels

Abstract

In an organization, distribution function satisfies the utilities like place, form, time and cost. In order to maximize these utilities, functioning of the channels of distribution should be effective and intermediaries like wholesalers, distributors, and retailers should work collectively and unidirectional. Organizations have to be built with little or no gaps in the distribution system. Gaps would possibly lead to intermediaries becoming opportunistic and thus shirk or free ride. In order to check the opportunistic behaviour, understanding intermediaries on behavioral front in addition to the systems and structures in control would be a logical step. Researchers and industry are continuously undertaking numerous studies in order to read the opportunistic behaviour of the intermediaries, its causes and consequences.