The effects of indirect distribution channel management on customer satisfaction, a case of National Cement S.C. Dire Dawa), Ethiopia

The objective of this study was to assess the effects of indirect distribution channel management on customer satisfaction, a case of National Cement S.C. The researcher used explanatory research design with quantitative research approach in order to meet the objective of the study. The target population for this study was members of Customers of National Cement S.C, distributer of cements and staff. Out of which 128 respondents were selected using Stratified Random Sampling Technique. A structured and self-administered questionnaire was developed distributed to the target respondents. A total of 122 questionnaires were used for this study and the data were analyzed using descriptive and inferential statistics. Pearson Correlation analysis shows that there was statistically significant and positive relationship between all the five types of indirect channel distribution dimension (i.e. Product Availability, Indirect Distribution Services Timeliness, Indirect Distribution Services Quality, Indirect Distribution Services Flexibility, Perception towards commitment) and customer satisfaction, however Perception towards commitment is higher than other. The result of multiple regressions Analysis revealed that 89.7% of the variation of customer satisfaction can be predicted by the independent variables i.e. Product Availability, Indirect Distribution Services Timeliness, Indirect Distribution Services Quality, Indirect Distribution Services Flexibility, Perception towards commitment and Perception towards commitment higher in relation to others variable. In addition, One-Way ANOVA analysis of all factors affecting customers’ satisfaction with channels distributer, the three (i.e product availability, indirect distribution services timeliness and indirect distribution services flexibility) are significance difference between indirect channels of distribution. Finally the researcher recommended other variables which could affect customer satisfaction of fast moving consumable goods are a potential area for further study.