Distributor Whistle-blowing Deterrence: A Review and Prospects

Jingsong Chen () and Kun Tan ()
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Jingsong Chen: Guizhou University of Finance and Economics
Kun Tan: Guizhou University of Finance and Economics

A chapter in Proceedings of the 2024 9th International Conference on Social Sciences and Economic Development (ICSSED 2024), 2024, pp 935-944 from Springer

Abstract: Abstract In channel marketing, the phenomenon of distributors uniting, or “banding together for warmth,” serves to consolidate their voice in advocating for collective interests and bolstering market presence. However, this excessive cohesion may foster detrimental competition within the channel, adversely affecting overall performance. Internal whistle-blowing among distributors emerges as a crucial mechanism to mitigate opportunistic behaviors. Nevertheless, in societies where relationships (GUANXI) prevail4, the costs of promoting internal whistle-blowing significantly surpass its advantages for the distributor network. Consequently, this study suggests harnessing the deterrent impact of internal whistle-blowing to diminish channel management expenses while concurrently obstructing the spread of opportunistic practices among the cohesive distributor collective. Although deterrence perception has undergone thorough investigation in psychology and related fields, it remains underexplored within the realm of marketing channels. This paper, therefore, delves into the theoretical underpinnings of deterrence perception, delineates the interplay between distributor whistle-blowing and collective deterrence effects, and underscores the pivotal role of deterrence in shaping future inquiries in channel marketing.

Keywords: Distributor whistle-blowing; the dealers’ “banding together”; Perceived deterence; Network Intensity (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-459-4_104

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