A multivariate model of power in the relationship among suppliers and resellers of US forest products entering selected markets of the European Union

Issues relating to power in marketing decision-making in forests products t rade are seldom analyzed and are poorly understood. Consequently, no reliab le analytical models are in place. This paper presents the results of a uni variate and a multivariate statistical analysis that describes power in the relationship between different types of intermediaries for three countries in the European Union (EU). Understanding this dimension of the channel re lationship will assist forest products firms in developing effective polici es for dealing with intermediaries in the EU. To analyze power, a survey instrument identified eleven areas of responsibi lity/power among suppliers and resellers of U.S. hardwood softwood, and sof twood plywood in the United Kingdom, Germany, and the Netherlands. The resu lts clearly illustrated that resellers from the EU countries perceived that they hold more responsibility/power than their U.S. suppliers over the maj ority of marketing decisions. In general, the results of a univariate analy sis found that on a broad level there were major differences between resell ers that took title versus resellers that did not take title. The largest d ifferences between these two groups were among the variables associated wit h distribution and pricing. The results of a multivariate analysis indicated that power among resellers can be summarized by two factors termed "Strategic Planning Responsibility " and "Service Responsibility." The analysis indicated that the difference in perceived power between resellers that rake title versus those who do no t take title is in the strategic planning dimension, where emphasis is on p ricing and distribution responsibility.