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Multinational Channel Strategy and Customer Value in an Emerging Economy

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Author(s): Fredrick O. Aila, Hazel Mumbo | Odhiambo Odera | Gerald Ondiek | Jairo K. Mise | Eddy Owaga

Journal: Australian Journal of Business and Management Research
ISSN 1839-0846

Volume: 1;
Issue: 9;
Start page: 98;
Date: 2011;
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Keywords: Multinationals corporations | channel strategy | customer value | emerging economy

ABSTRACT
This paper examines the impact of multinational channel strategy on customer value by assessing customer demand side issues. It assess the relationship between order cycle time, stock availability and sales to describe the impact of distribution strategy on customer value. The study was carried in locations comprised of Equator Bottlers Limited franchise territory within five districts in Western Kenya. A cross-section survey using a structured questionnaire was used to collect data. Data was prepared for analysis by editing, coding, categorizing and analyzed using both descriptive and inferential statistics. Majority of distributors were found to be located within the major urban areas of Kisumu and Kericho as a result of proximity to the plant and high rates of consumption. In order to increase the value offered to customers, there is need to reduce order cycle times to the bare minimum of one day for stock replenishment.

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