ST.

MARY’S UNIVERSITY
DEPARTMENT OF MARKETING

THE IMPACT OF DISTRIBUTION CHANNAL SELECTION STRATEGY:

THE CASE OF KIDUS GIORGIS TRADING IN ADDIS ABABA.

BY:-BAMLAK GETACHEW

MARCH, 2024
ADDIS ABEBA

i
ACKNOWLEDGEMENTS

First and foremost, I would like to thank God who has provided me guidance in all my life
endeavors. My sincere gratitude goes to Meza for his genuine guidance, invaluable feedbacks
and encouragement for preparing and finishing this study I am endowed to thank the customers
of Kidus Giorgis Trading and kidus Giorgis Trading Company technical staffs who have
permitted me to make the study and showed interest by dedicated their time in filling the
questionnaire which is the foremost reason I am able to finalize the study. Finally, I would like to
thank all my well-wishers who have been giving me appreciation and moral support throughout
the study.

ii
ABSTRACT
The purpose of this study is to asses the impact of distribution selection strategy of Kidus Giorgis
Trading in Ethiopia
The samples were selected using sampling method. Out of 80 target population a sample size of
50 was beneficiors (2006) formula and responses of 50 customers were analyzed. The
questionnaire was tested for its reliability and found to be reliable enough to study the research
questions. The data collected from the survey was analyzed Statistical Package for Social
Sciences (SPSS) version 20 and presented in the form of descriptive statistics, Pearson
correlation coefficient and Multiple Linear Regression Analysis. The level of SHRM practices
on OP were medium since its mean value were lies between 3.33-3.689 from Liker Scale
Measurement it shows medium value which is 3 and above. As the result of Person correlation
coefficient analysis result a positive significance correlation between each SHRM practice with
distribution channel selection strategy in Kidus Giorgis trading company because the P-value
for the correlation is less than 0.05. Furthermore, the multiple regression result shows that the
predictive power of SHRM practice (independent variables) asses on distribution channal
selection strategy (dependent variables) were significant. Therefore, the study concluded that
Strategic company practice has a significant influence on distribution channel selection strategy
dimensions. In addition, Strategic company are moderately practicable in an company. There is
also a significance positive relationship between company and customers. The study finally
recommended the organizations should give great emphasis on company distribution channel
strategy so as to yield higher companies . Because, the recent and future competitive market
/business environment is sophisticated, organizations should highly work on the organizational
alignment with Strategic channel distribution to enhance the customer satisfaction and financial
growth by giving the overall idea of Strategic Plan of the company with which to apply the entire
departments and to come up with the company strategy on the dimensions of Balanced Score
Card (BSC) should work on customer capital and assign an technical staffs at right place/
position.
Key words: distribution channel, selection strategy strategy and Balanced Scored

iii
 CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
Production is the creation of goods and services and these goods and services can
be produced in factories or industries and stored in warehouses. However,
production cannot to be said to be complete until the products/services get to end
user or consumer. This can be obtained through the distribution process and that
completes the production cycle. One of the components of marketing mix is the
task of transferring product from production place to purchase place for the
customer, thus the main task of distribution management is placing goods in the
hands of potential customers at the right time and place (Roosta et al. 2009).
Distribution channels can be described by the number of channels involves. A
layer of intermediaries that perform some work in bringing the product and its
ownership closer to buyer is channel level (Kotler, 2004).
Any organization to be effective there should be effective distribution management
process to convey finished products from the manufacturer to the final consumers.
This is because without having standardized distributor the best product will not be
delivered and the marketing mix will break down and fail (Ferguson 2000).
In the theory of marketing mix, place (distribution) determines where the product
will be sold and how it will get there (Kotler, 2000). Griffith and Ryan (1996) hold
that distribution channels evolved through the utilization of national resources
contained within an area of trade. The need to move the resources to other areas
where they were in demand brought about the need for distribution channels. A
channel of distribution comprises a set of institutions which perform all of the
activities utilized to move a product and its title from production to consumption.
Consumers today are more environmentally conscious than ever. However, it has
been found that there is a gap between the consumer’s intention and actual
purchase when it comes to products that there is a social pressure to buy for
environmental reasons. The potential for the socially desirable segment is estmated
to have potential, but growth seems to be slow.
1.2 Statement of the Problem From the economic system’s point of view, the role
of marketing
intermediaries is to transform the assortments of products made by

producers into the assortments wanted by consumers. Producers make

narrow assortments of products in large quantities but consumers want

broad assortments, intermediaries buy the large quantities from many

producers and break them down into the smaller quantities and broader

assortments wanted by consumers. Thus, intermediaries play an important

role in matching supply and demand. So, it is

believed that proper practice of distribution channel in a company helps to

achieve their objectives. With increasing number of new privately owned

companies coming to the market in Ethiopia, printing companiesare facing

high level of competition. Due to this, the company should consider and

evaluate their marketing plan and develop appropriate marketing mix

strategy from time to time to remain in the market.

This therefore explains the problem of getting the right quantity of the right
product to the right place at the right time and at the least cost possible. This
challenge has confronted companies with issues such as meeting delivery due dates
and operating an efficient distribution network. Geographically imposed gaps
between firms and their potential consumers is bridged by distribution, as physical
distribution uses its transportation function to provide time and space utility
between these two parties (Bowersox &Closs, 2010). Based on the survey
conducted by various departments within the firm conducted during 2017–2018
half fiscal year market survey result; it was seen some indicators that Insufficient
supply of product to the channel members during pick season by the company,
unavailability of product as per end-user request, inconsistent selling capacity of
channel members, inconsistent assessment of channel members by the company
distributor representatives, and inadequate finical capacity of distributors for re-
stocking items or products was a straggle (CCBA Knowledge and intimacy, route
to market survey June, 2018). In the same report distribution is becoming a more
imperative issue in company accounts as the cost of transportation, warehousing
and stockholding are growing relative to the costs of other industrial inputs.
Marketing efforts, such as the extension of product lines and penetration of new
marketing channels into new markets, were imposing increasing strain on
distribution systems, making them more complex to manage and more expensive
to operate (McKinnon, 2009). In the emergence of these marginal problems, there
is the fact that there are so many brands of consumer goods in the market from
which the consumer has to choose from with little or no attention to difference
among them in terms of quality and other characteristics.
As Yang (2013) pointed out a good design of a distribution network could achieve
a number of logistics and supply chain goals, ranging from low operational cost to
high customer service level. Thus, to plan, design and select and use the most
efficient and effective channel of distribution in which to place a product into the
hands of the customer is very important for such market leading manufacturers like
as p producer, Kidus Giyorgis trading. Keeping in view the above discussion, the
researcher focus to conduct a research study in which the impact of distribution
channel selection identified and analyzed.
1.3. Research Questions
 Does the company have sufficient and convenient distributionchannel?
 What are the major distribution related challenges that Kidus Giyorgis
trading faces?
 To what extent does the company utilizes opportunities underlyingthe
distribution practice?
1.4. Objective of the study
General objective
The main objective of this study is to assess the impact of distribution selection
strategy of Kidus Giyorgis trading in Ethiopia.
Specific objectives includes
 To examine whether the company have sufficient and convenient
distribution outlets.
 To identify the major challenges of Kidus Giyorgis trading on its
distribution practice.
 To investigate the extent at which the company utilizes different
opportunities.
1.5. Significance of the study
This research output has believed basically to benefit the researcher to getbasic
knowledge about the marketing strategies in general and distributionchannels in
particular and their significance in printing industry. Onthe other hand, Kidus
Giyorgis trading can use the recommendations forwardedby the researcher and
improve its distribution channel practices. Also, thisresearch paper can be used as
reference material to future researchers whowill conduct study on the printing
industry.
1.6. Scope of the study
The study is delimited on the distribution channel practice of Kidus Giyorgis
trading. Kidus Giyorgis trading establishes in 2004 E.C in Addis Ababa and the
first two years the company was working on distributing stationary items as
wholesaler and starting from 2006 E,C till now it’s working on printing
commodities like university reference books.

1.9. Limitation of the Study

The first limitation of this study were difficult to generalize the findings of the
study to distribution of channel and other areas. The other limitation of the study
was the existence of to reveal the real situations

1.10 Organization of the study

The first chapter will include introduction, statement of the problem, research
question, objective of the study Significance of the study, scope of the study,
Organization of the study The second chapter, review of literature , definitions of
terms, The third chapter, research design and methodology. The fourth chapter
contains, presentation and analysis of data. The last or the fives chapter includes
summary of the finding, conclusion
 CHAPTER TWO
LITERATURE OF REVIEW
2.1 Introduction

Having an efficient distribution network has been one of the most

crucial and critical factors in any manufacturing company or organization
(Poulaki, &Katson 2020). Over the years, it has been noticed that if any
business lacks an effective distribution channel, that would affect badly the
profits leading to a business failure (Kulinskaet al., 2020). Having an
adequate, accurateand aconsistentdistributionnetworkgivesthecompanya
competitive advantage to thrive in its operating market(Rambocaset al.,
2015).Distributionchannelisthewayacompanymanagesandplanstodeliver the
products from the manufacturer to customers. There are four main types of
distribution channels; direct distribution channel which is performed through
delivering directly to the customer without any intermediaries,
indirectdistributionchannelwhichisperformedthroughdealingwithretailers
oranyintermediarycompaniestohaveahighcoverageofthemarket,physical
distributionwhichmeansthatthemanufacturersellstheproducedproductsin a
physical store, and finally online distribution which reflects that the
manufacturerissellingtheproductsthroughtheinternet(Sharmaetal.,2019).

Each company determines also which distribution strategy will be

followed before operating in the market. There are three main distribution
strategies; exclusive, intensive, and selective. Exclusive strategy involves
selling the product in one or very few stores to reflect the product’s
exclusivity.Selectivedistributioninvolvessellingaproduct atsomestoresin
specificlocations.Intensivedistributionstrategyinvolvessellingaproductin
many stores as possible (Mondal et al., 2017). Meanwhile, it should be
highlightedthattheadequatedistributionstrategyischosenbasedonthe
product nature.Distribution channels types and strategies are very important
for any company as they have a huge impact on the sales of the company’s
products.Moreover,they contributein affectingconsumers’buyingbehavior.
Forinstance,customerspreferbuyingconvenienceproducts,whicharegoods
consumers, buy frequentlyfroma certain brand over another due to its
affordabilityinthemarket.Inotherwords,customersarewillingtobuymore from
certain brands than others because they are reachable and easy to be found.
However, they do not like to purchase from brands that are not affordable, as
they find many difficulties to reach them(Pappas,
2016).Therefore,distribution channels became one of the most important
factors that companies give a huge attention in order to gain and maintain
customers from different areas.

This aim of this study is to investigate the impact of distribution channel

strategiesandtypesontheconsumerbuyingbehaviorofconvenienceproducts
asproteinbars.Atheoreticalbackgroundwillbepresentedfirsttoexplainthe
studied concepts from previous studies. Then, the research problem will be
elaborated followed by research objectives and conceptual model. After that,
the methodology part will be discussed followed by adetailed explanation of
theresearchresultsandconclusion.Finally,theresearchwillendupwithsome
recommendations, research limitations and future research suggestions.

2.2.1 Literature Review

AccordingtoWongandLesmono,(2019)distributionchannelisaway of
communication between the manufacturer and the consumer in a direct or
indirect way, and it is one of the most important parts that the manufacturer
focuses on planning for it, even before launching the product, in the product
development stage. Modak et al., (2021)explainedthat distribution channels
thatdependonmanufacturer,distributorsandretailers,playanimportantrole
inincreasingthefirm’sprofitsandrevenuessincetheyallhaveacertaintime frame
to follow, starting from the manufacturer who is responsible of
providingtherequiredamountofproductstobeavailableattherighttime,so
thatthedistributorcanstarttodeliverandprovidetheproductsfortheretailers who
place the products in their stores to be available for the consumers.
According to Sarmahet al. (2015) retailers are considered as the place where
the customers could find the manufacturer products, and also some retailers
contain different brands for the same product category and sells the products
oftwo competitorssuch as: Pepsi and Coca-Cola,both will be foundin same
markets.
 Distribution channels are one of the factors in the marketing mix (4
Ps).Itisreferredtomarketingmixastheproduct,place,price,andpromotion.
Distribution channels are considered as the place where the product is suited
inaconvenientplacetobefoundeasilybythecustomers.Inotherwords,itis the way
that a company provides its products to the customer in the market
anditcanbephysicallywiththetraditionalwaysandalsocanbeonline,which
isanewwayprovidedbythechangeinconsumerbuyingbehaviorandbecame a
very important way in selling products (Zhu, 2020).

Also, distribution channel is a way of communication that helps the

company in building a long-term relationship with customers by providing
them with constant supply of their desired products in the retail stores. The
successofthisdistributionchannelis countedbymeasuringthequantitysold from
products, as it is an indicator of the ability of the customers to reach to
thebrandeasilybytheaidofthesechannels.Inaddition,thegoodrelationship
betweenthebrandandthecustomersrequiresagoodrelationshipbetweenthe
manufacturer and distributor or retailer as that will be reflected in the
availability of the products on their shelves (Seitz, 2015). Moreover, Farra et
al.(2019)statedthatdistributionchannelsarenotonlyparticipatingincreating a
long-term relationship with customers, but they can also contribute in
building good brand image for the manufacture’s companies.

Distributionchannelshaveseveral benefits.First, placeutilityas theyhelpin

moving the goods from one place to another. Second, time utilityas they
providethecustomerswiththeneededproductsinthesuitableandconvenient time.
Third, convenience value as they provide the customers the goods with
convenient shape, unit, size, style and package to match with their needs and
preferences.Fourth,possessionvalueasitgivestheconsumerstheopportunity of
owning or obtaining the goods. Therefore, it could be said that such channels
help provide the product to consumers when, where, and in the amounts,
they prefer (Mondal et al., 2017).

2.3 Types of Distribution Channels and Strategies

According to Kocaogluet al. (2020) there are different types of

distributionstrategiessuchas:directandindirectshipment,whenproductsare
takenfromsuppliertousersorwhenitisdeliveredfromproducertoretailer,
this is called direct strategy, while indirect strategy is when a manufacturer
bringsanexternalbusinessorentitythatisresponsiblefordeliveringproducts to
consumer.

Direct distribution is considered as one of the most used product

distribution techniques. The direct distributions were defined as when a
corporationsellsandtransportsitsproductsdirectlytoclients(Abdullahetal.,
2021).That excludes the needtodeal with amiddleman, as the manufacturer
communicates directly with customers during the buying process (Rambocas
etal.,2015).Directroutesincludeselling,retailstores,acceptingordersfrom e-
commerce websites, as well as other direct methods. Also,
Andrejić&Kilibarda (2015) stated that direct distribution channels are
consideredasthesimplestandeasiestwayofdistributionandtheyhavemany
differentwayssuchastheorderfromthecataloguebyemail,alsothereisthe internet
online shopping which became the most common way for shopping now.
Direct channels are frequently used by manufacturers who offer perishable or
expensive commodities to a densely settled target market such as bakers,
jewelers, and other professionals fall under this category.

Meanwhile,theindirectdistributionchannelshavebeendefinedasthe
company's distribution functions are performed through intermediaries. This
type of distribution channel has several benefits such as being considerably
easier to maintain a good position in the market than a direct distribution
channelifthereisagoodrelationshipwithintermediaries.Also,itcanprovide more
support and distribution knowledge that a company may lack. On the other
hand, indirect distribution has some disadvantages such as it can add new
levels of cost and complexity to the consumer's bill. Also, there may be
problems in the shipping because of the slow delivery. In addition, they may
takecontrolawayfromtheproducerleadingtoconflicts(Kulinska,&Smaga,
2020).

Yeung&Mok (2013) referred to the direct and indirect distribution

channels using different terms as they stated that that there are two types of
distribution strategies which are official authorized distribution channels and
unofficial parallel imports distribution channels, the official authorized
distribution channels are distributors by the manufacturer or the company
itself or a retail store that took an approve to use the brand name and being
authorized from the company to trade their products and sell it to the
customers,whiletheunofficialparallelimportsdistributionchannels referred
toasthestoresthatbringtheproductsbybuyingthemfromdifferentareasand start
selling it with different prices from the authorized stores.
 Additionally, there are two types of distribution channels which are:
centralized and decentralized. The former, centralized distribution channels,
means directly selling the manufacturers’ products to the customer by using
theexpected-revenuefunctioninestimating thepriceorinpricing,generally.
However,thereisariskinusingthisdistributionchannelasthemanufacturers
willberesponsibleforallunsolditem,incurringunwantedexpenses,orrather,
losses.Whereasdecentralizeddistributionchannelsimplythattheretailstores are
rather responsible for the sales and delivery of the products on the
manufacturers’ behalf (Jerathet al., 2017).

Pulidoet al. (2015) stated that there are also online and physical
distribution channels. The physical distribution channel entails that the
companies should focus on the time that it takes to deliver the product by
studyingtheamountofgoodsthatcanbecarriedinonewagonorvehicleand by
measuring the journey’s duration from the starting point – when the order is
received by the firm– to the ending point which is when the customer
receivestheirorder.Ontheotherhand,theonlinedistribution channelcanbe
carried out by using the relevant applications or via the internet which
facilitatestheorderingprocess.Theauthorsalsostatethatestablishingproper
logistics system is extremely essential to ensure the efficiency of whichever
distribution channel any firm selects.

Moreover, the physical distribution channels are known for the high
availabilityofproductsintheretailerswhichmakesitvitalforfirmstotryand cover
most of the regions that they sell in. Given that most countries have a
developing infrastructure by constantly building new roads and highways, it
has become significantly easier to cover the regions that the firms need to
reach.Therefore,firmsshouldratherfocusonthepricestocompetewithother
distribution channels and other retailers that sell same product. They should
alsofocusonthequantitytobedistributed,andtheavailabilityoftheproducts and
the number of retail stores they intend on covering (Sharmaet al., 2019).
However,theeasiestandthemostcommondistributionchannelsystemisthe
online one as the consumer can easily find and quickly buy any product that
they desire on the internet. This reflects the internet’s power in the market
whichisabigshiftasitfacilitatesthebuyingprocessforconsumers(Schegget
al. ,2013).

Phygital marketing is a new concept that is used nowadays in the shops in

order to enhance the customers’ experience (Moravcikova&Kliestikova,
2017). Phigital marketing is a term that combines both physical environment
anddigitalexperience.Phygitalreferstoboththeonlineandoffline
environments by taking the best aspects from each space to create a much
morecompleteandsatisfyingcustomerexperience(Johnson&Barlow,2021).
The phygital phenomenon is considered as a different and unique marketing
tactics that are used recently as it provides a multichannel focus where the
consumer’s purchasing process is fluid and familiar
(Moravcikova&Kliestikova, 2017).

Phygital combines the best components from the physical experience, and
digital experience. it takes from the physical retail experience the advantage
ofinteractionwithpeopleandtheproduct.However,Ittakestheadvantageof
immediacy, immersion, and speed from the digital experience (Johnson&
Barlow, 2021;Moravcikova &Kliestikova, 2017). For example, phygital
experiencedependsoninteractivetouchscreensinwhichcustomerscanscan the
code of the product on a digital screen and get precise information (e.g.,
product features, color, size, availability, and so on) as well as compare the
product to other possibilities (Banik& Gao, 2023). In addition, phyigital
experience requires contactless payment systems as the customer can pay
onlineintheshopwithoutwaitingforpayingina cashier(Johnson&Barlow,
2021).Moreover,phygitalmarketingprovidesthecustomerswithaugmented
reality experience through a smart digital mirror which gives the customers
theopportunitytomakeatrailofthesephygitalretailproductsinordertotest their
fitness in various environments (e.g., party, traveling, weather, etc.) (Banik&
Gao, 2023). Moravcikova and Kliestikova (2017) stated that 50
percentofcustomersareinterestedtopassthroughphyigitalexperience.They
added that this approach is the best way to satisfy a demanding, hyper-
connected, and picky consumers as it meets their needs through multiple
platforms.

latestexamplesofthistrendincludeAmazon’scashier-lessconveniencestores
called “Amazon Go” and “Nike Live” stores, which make the shopping
experience completely different. The customers go to the store and they
choose what they need from the products, and they scan a code with their
smartphone. Then, they leave the shop directly without passing through the
traditional checkout line as they will get an electronic receipt detailing the
amount Amazon will charge to their account (Ziaie et al., 2021).

2.4 Types of Distribution Strategies:

The companies choose the distribution strategy which will use mainly
based on the product type (convenience product, shopping product, specialty
product (orunsought product).Each type has the convenient distribution
 Strategy that also fits with the consumers of this product(Agostinietal.,2021). Distribution
strategies could be intensive distribution, selective distribution, and exclusive distribution.
According to Mondal, et al. (2017), exclusive distribution is a distribution strategy where
buyers are only able to purchase
goodsfromthebrand’sownretailstoreorwebsite.Usingthisstrategyreflects high credibility
among consumers as they assume that the products must be special they are exclusively
sold through the brand sretail store or website.

In contrast, it is reckoned that the intensive distribution is one of the

mostfavorablestrategiestofollowifacompanyintendsonpenetratinganew market as it leads
them to easily flood the market with their new product to gain as much exposure as they
can whilst simultaneously working with their marketing channels to raiseawareness about
the product and its procurement locations (Zhang and Wang, 2018). This strategy is more
suitable for the convenienceproductmarkets,asthecustomersneedthistypeofproductsina
continuous and frequent basis (Agostini et al.,2021).Ultimately, the selective distribution is
a distribution strategy where companies sell their products in specific retail stores or
websites rather than sell it in every store possible (Ramanathan and Parrott, 2017).
Selective distribution is a combination of both intensive and exclusive distribution which
allows the business to have their products displayed in several places while being selective
about the displaycenters(GazelyandMcLaren,2015).Agostinietal.(2021)statedthat selective
distribution strategy is more appropriate for shopping or luxury products.

2.5 Definition of Terms

2.5.1 Distribution
Distributionistheprocessofmakingaproductorserviceavailableforuseorconsumptionbyaconsumeror
businessuser,usingdirectmeans,orusingindirectmeanswithintermediaries.Orarethemovementofgoo
dsandservicesfromthesourcethroughadistributionchannel,rightuptothefinalcustomer,consumeroru
ser,andthemovementofpaymentintheoppositedirection,rightuptotheoriginalproducerorsupplier.An
orderorpatternformedbythetendencyofasufficientlylargenumberofobservationstogroupthemselves
aroundacentralvalue(Wren,2007).Thefamiliarbell-
shapedcurveisanexampleofnominaldistributioninwhichthelargestnumbersofobservationsaredistrib
utedinthecenter,withprogressivelyfewerobservationsfallingevenlyontheeithersideofthecenter(aver
age)line.Seealsofrequencydistribution,nominaldistribution,andstandarddistribution(Wren,2007).
2.6 Channel
Thechannelfunctionconcepthasalreadybeenextensivelydiscussedbyacademics(
Ranganetal.,1992).McCammonandLittle(1975)arguedthatfunctionsareconside
redtobethebasicdeterminantsofchannelstructure.Thatis,asystemdesignedtocarr
youtnecessarytasks.Someresearchershavediscussedchannelstructureintermsoft
hefunctionperformedbychannelmembers(Mallen,1973).Thebasicideawasthatc
hannelfunctionscouldbeallocatedindifferentcombinationamongvariouschannel
actorsdependingonthecharacteristicsofthechannel(Wren,2007).Channelfuncti
onsarecategoriesofactivitiesandservicesthataddvaluetophysicalgoodsastheym
ovefrommanufacturerstocustomers(AtwongandRosenbloom.1995).
 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
A research design is a master plan that specifies the methods and procedures for collecting and
analyzing needed information (Zikmud et, 2009pp,66).
The research problem requires measuring the variables of the impact of distribution channel
selection strategy.

3.2 Population and Sampling techniques

3.2.1 Population
The target population of this study was the technical staffs and customers of the Kidus Giorgis
Trading company. The total population of this study is 80. That means, there are 30 technical
staffs in Kidus Giorgis Trading and 50 customers was the sample of this study.
The target population for this study was the impact of distribution channel selection strategy in
the case of East Kidus Giorgis Trading in Addis Ababa. The sampling frame which is the actual
set of sampling units from which sample selected were processes found in around company.

3.2.2 Sample Unit and Size

The sample size of this study was 50 customers of printing products around of Addis Ababa area.
The following sample size formula was used to determine the sample size of the population in
Kidus Giorgis Trading company.

The formula was developed by Guilford and Flruchter (1973). It is calculated as follows:

Z= N

1+μ2N

Where: Z is sample size is the size of the population, μ is alpha = +0.05.

Z= 80/1+(0.05)2 (80) =50

Thus, 50 is the sample size

3.2.3 Sampling techniques
A student researcher was used simple random sampling techniques respectively, that means for
all 50 sample of customers of printing products. In this study the researcher was give equal
chance for all respondents. But all respondents was can’t take the same idea about the Kidus
Giorgis Trading company

3.3 Types of data

Primary and secondary data source was used in this study. The primary data was collected
through questionnaires from customers. On the other hand, secondary data was collected from
text books, related journal, articles, magazines, periodicals, and researches. In addition, the
Kidus Giorgis Trading company S.C. documents such as annual performance reports, strategic
planning documents and policy and procedure documents was used.

3.4 Methods of data collection

The data collection procedure began with document and literature review. The documents related
to distribution channel selection strategy were reviewed. After document review had been made,
related literatures were reviewed. Standardized and tested questionnaire were adopted. Then,
finally questionnaires were distributed to respondents and all distributed questionnaires were
collected, coded and entered in SPSS for analysis. Finally, secondary data analysis was made to
assess the impact of distribution selection strategy of the company and the research result was
enriched and developed.

3.5 Methods of data analysis

The data gather through questioner were analyzed quantitatively having this the entire data was
analyzed using SPSS version 20. Using this instrument descriptive statistics, Pearson correlation
and regression analysis were used to observe the level of company and distribution channel
selection strategy, to investigate the significant correlation between the dependent and
independent variables. Similarly, the multiple regression models used to examine the significant
impact of the independent on the dependent variables since the normality of the data is between
-1 and 1(Appendex-3).