Exploring Retailer-Manufacturer Ethical Relationships

Abstract

The retailers and manufacturers work in collaboration for their mutual interest as well as for the consumers they serve. As a product passes through several hands before reaching to consumer, but sometimes manufacturers sell directly or through the retailers without involving other middlemen. The producers usually sell directly to retailers through their salesmen who take orders from retailers and immediate delivery of products is made to them at their retail outlets. It is an obligation on the part of retailers to behave ethically in their dealings with their manufacturer. They are ethical when they behave fairly, honestly, sincerely and in a sense of truthfulness and responsiveness. This paper empirically examines the perceptions of manufacturers about ethical practices of retailers from the data gathered from manufacturers supplying merchandise directly to the retailers in Jammu city. The reliability was duly assessed with Cronbach alpha and Exploratory Factor Analysis was applied for data purification. The finding indicate retailers as moderately ethical in most of practices but unethical in terms of payments of bills on time and of exact amount. The study is valuable for researchers, retailers, manufacturers and policy makers.

Keywords: Ethics, Relationship, Wholesaler, Retailer, Distribution chain

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