The Effects of Identification with the Manufacturer’s Brand and the Alignment of the Control System on Distribution Channel Sales

Abstract

Objective:  This paper addresses the manufacturer’s efforts toward the distribution channel. Specifically, the research proposes that the channel’s control system alignment with the manufacturer moderates the association between organizational identification with brand and performance, amplifying it.

Method: Using a survey of 147 salespeople from a multinational, the results demonstrated that the manufacturer’s control system and organizational identification increased the manufacturer’s sales.

Originality/Relevance: The organizational identification created greater revenues when there is a greater alignment of the sales control systems through the reinforcement of the psychological connection between brands and sellers in the distribution channel.

Results: The findings also indicated that the organizational identification with a brand generated positive behaviors of the seller in favor of the manufacturer brand.

Theoretical/Methodological Contrbutions: The alignment of the control system is positive for the manufacturer’s sales results because it means that the different agents of the sales process use the same systems of control of results and behaviors of the vendors, be it the manufacturer or the sales and distribution channel.

Social / management contributions: When pressure from regulatory procedures and financial incentives drive the salesperson's efforts at the distribution channel of a particular brand through alignment of control systems there is increased sales. Recognizing this, manufacturers can invest resources to influence, directly or indirectly, control systems in distribution channels. Applying alignment of control systems tends to improve channel outcome and increase limb performance.