Channel relationship: a study of franchisees of BSNL mobile business in Karnataka

Abstract

The role of distribution channels in marketing of products is critical as they not only serve market but also make them. (Anderson and Coughlan, 2001). This study tries to examine channel relationship in the context of a large public service provider in the telecom domain (BSNL) and its franchisees in the state of Karnataka. More specifically this study tries to understand the perspective of the franchisees towards BSNL from the dimensions of trust, support and satisfaction. Besides, this study tries to examine whether the level of trust and satisfaction of BSNL franchisees of Karnataka is positively reflected in their performance. The results suggest that franchisees are dissatisfied with BSNL but consider BSNL to be a trustworthy partner. The reason for this could be BSNL being a public sector company, transparency in its approach and little incentive to cheat its franchisees. Our results could not statistically demonstrate that increase in trust or satisfaction level is reflected in performance. The study suggests that BSNL needs to focus on providing better advertising support along with addressing the service and financial concerns of franchisees.