The Evaluation of the Effect of the Final Distributorייs Brand on Profitability (A Case Study into the Food Industry)

In modern business, competitiveness is a key factor for every company. Brand is one of the most important properties of a company. Some of the problems which require evaluating the effect of the final distributorʹs brand on profitability improvement, include the lack of distributors with strong and international brands, the nongovernmental investorsʹ unwillingness towards this sector, and the lack of academic comprenhensive information on this field. This study is a descriptive-field research, practical in nature and limited to a period of time with the purpose of evaluating the effect of the final distributorʹs brand to improve profitability. The focus group of the study consists of the senior and middle managers and the marketing managers of the distributors with major brands in the city of Isfahan including Refah chain stores, the staff cooperative stores and Hypermarket store. A representative sample of 173 persons was selected among them through the calculations based on Cockran formula. A survey was used as the means of measurement. The assumptions were analysed based on Pierson hambastegi test and structureal equations modeling with Spess and Smart pls software programs. The results indicate that distributorʹs brand improves the relationshop between the original producer and the final producer and it is also effective in the final customer satisfaction and, finally, in improving profitability; the extend the profitability was affected by variables was not the same; among the four main variables, brand, relationship quality, satisfaction and distinct product are of lowest rank.