IJCOPE Journal

UGC Logo DOI / ISO Logo

International Journal of Creative and Open Research in Engineering and Management

A Peer-Reviewed, Open-Access International Journal Supporting Multidisciplinary Research, Digital Publishing Standards, DOI Registration, and Academic Indexing.
Journal Information
ISSN: 3108-1754 (Online)
Crossref DOI: Available
ISO Certification: 9001:2015
Publication Fee: 599/- INR
Compliance: UGC Journal Norms
License: CC BY 4.0
Peer Review: Double Blind
Volume 02, Issue 10

Published on: October 2026

EFFECT OF DEALER PROFIT MARGIN FACTORS ON SALES GROWTH: A DEALER PERSPECTIVE FROM THE ELECTRICAL CONSUMER DURABLES SECTOR

Shiva Kumara V

Dr. Renee Namratha

Department of Management Studies, M.S. Ramaiah University of Applied Sciences, Bengaluru, India

Article Status

Plagiarism Passed Peer Reviewed Open Access

Available Documents

Abstract

Dealer profits in the electrical consumer durables industry depend on how manufacturers structure trade discounts, volume-based programmes, incentive schemes and credit terms, yet most evidence on these mechanisms comes from automobile, FMCG and general channel settings, and little is known from the dealer's side in India. This paper examines how four margin components (Trade Discount, Volume Based Schemes (VBS), Incentives and Credit Period) relate to Dealer Perception, Dealer Motivation and Sales Growth. A quantitative cross-sectional design was used, with a structured 35-item questionnaire on a five-point Likert scale administered to 200 multi-brand dealers (165 from the Bengaluru region and 35 from Hassan) in two waves between 14 August and 17 September 2026. Descriptive statistics, Pearson correlation, multiple regression, mean-score ranking, one-way ANOVA and relative-importance ranking were applied, followed by robustness checks for estimation method, data-collection wave and repeated response patterns. The four margin components explain 33.6% of the variance in Dealer Perception, 27.9% in Dealer Motivation and 24.9% in Sales Growth. Incentives is the only component significantly related to all three outcomes (Sales Growth: B = 0.314, p < .001) and remains significant under every robustness check. Trade Discount is consistently associated with Dealer Perception (B = 0.275) and Dealer Motivation (B = 0.471) but only weakly with Sales Growth (p = .035). VBS relates positively to Dealer Perception, while its negative coefficient for Dealer Motivation disappears once the collection wave is controlled. Dealers rate the usefulness of margin structures highest (3.85) and their fairness lowest (3.19), and perception does not differ significantly by business volume (p = .205) or experience (p = .782). The findings indicate association rather than causation and should be read in light of the self-reported data, low reliability of some scales and differences between collection waves.

Keywords: dealer margin; trade discount; volume-based schemes; incentives; credit period; dealer motivation; sales growth; electrical consumer durables.

How to Cite this Paper

V, S. K. (2026). Effect of Dealer Profit Margin Factors on Sales Growth: A Dealer Perspective from the Electrical Consumer Durables Sector. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(10), 1-9. https://doi.org/10.55041/ijcope.v2i10.049

V, Shiva. "Effect of Dealer Profit Margin Factors on Sales Growth: A Dealer Perspective from the Electrical Consumer Durables Sector." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijcope.v2i10.049.

V, Shiva. "Effect of Dealer Profit Margin Factors on Sales Growth: A Dealer Perspective from the Electrical Consumer Durables Sector." International Journal of Creative and Open Research in Engineering and Management 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijcope.v2i10.049.

Search & Index

References

Bhalchandra, S.A. and Shinde, N.D. (2024) 'Impact of dealer profitability on dealer satisfaction: a context of Indian automobile industry', International Journal of Science and Research Archive, 12(1), pp. 286-292.

Bharthvajan, R. (2014) 'A study on the effectiveness of sales incentives in improving sales performance', International Journal of Innovative Research in Science, Engineering and Technology, 3(4), pp. 10931-10933.

Chung, D.J., Kim, B. and Syam, N.B. (2020) 'A practical approach to sales compensation: what do we know now? What should we know in the future?', Foundations and Trends in Marketing, 14(1), pp. 1-52.

Cui, T.H. and Mallucci, P. (2016) 'Fairness ideals in distribution channels'.

Cui, T.H., Raju, J.S. and Zhang, Z.J. (2004) 'Fairness and channel coordination', Working Paper, The Wharton School, University of Pennsylvania.

Draganska, M., Klapper, D. and Villas-Boas, S.B. (2007) 'Determinants of margins in the distribution channel: an empirical investigation', Stanford GSB Research Paper No. 1959.

Jiang, Z., Wei, Y., Chan, T. and Hamdi, N. 'Designing dealer compensation in the auto loan market: implications from a policy change', Working paper.

Nandhini, B. and Rajini, G. (2026) 'Analytics-driven channel partner profitability enhancement and product mix optimization', International Journal of Social Impact, 11(2), pp. 10-19.

Osuji, A.O. and Edeme, N.C. (2023) 'Assessing the effects of incentive scheme on performance of sales force', International Journal of Academic Information Systems Research, 7(11), pp. 9-17.

Pathan, K.K. and Kesavaraj, G. (2023) 'A study on dealer-retailer relationship in consumer durables goods', Journal of Informatics Education and Research, 3(2), pp. 2685-2695.

Ethical Compliance & Review Process

  • •All submissions are screened under plagiarism detection.
  • •Review follows editorial policy.
  • •Authors retain copyright.
  • •Peer Review Type: Double-Blind Peer Review
  • •Published on: Oct 09 2026
CCBYNC

This article is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. You are free to share and adapt this work for non-commercial purposes with proper attribution.

View License
Scroll to Top