Intra-brand differences in payment periods in marketing channels

Although lengthy payment periods often occur in marketing channels, the causes that trigger them have received scant attention. Different distributors often employ variant payment periods in their transactions with the same manufacturing company. This study sets out to analyze the causes that spark such intra-brand differences by considering two groups of antecedents: (1) those linked to the balance of power in the supplier–distributor relationship and (2) those that derive from the quest for efficiency in the marketing channel. The results of the study highlight how efficiency-based antecedents play a key role and are complementary to power-based analyses in explaining the phenomenon of payment periods.