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0019-8501/98/$19.00 PII S0019-8501(97)00001-1 Industrial Marketing Management 27, 21–29 (1998) © 1998 Elsevier Science Inc. All rights reserved. 655 Avenue of the Americas, New York, NY 10010 Items to Consider for Just-in-Time Use in Marketing Channels Toward a Development of a Decision Tool S. Altan Erdem Cathy Owens Swift This study focuses on an empirical analysis of variables as- sociated with the evaluation of inventory management tech- niques. There are 23 items that channel managers should ex- amine before deciding to use just-in-time as the primary inventory control method in a particular channel network. These items can be grouped under the five categories of deliv- ery effectiveness, information system needs, spatial concerns, financial resources, and channel cohesiveness to form a cru- cial decision tool for channel managers. © 1998 Elsevier Science Inc. INTRODUCTION Increasing competitiveness among industrial channel members has resulted in a growing awareness of various cost-saving procedures in marketing. Efforts directed to- ward lowering the cost figures traditionally have focused on the physical distribution functions of these members as well as the production tasks. Transportation, ware- housing, inventory management, materials handling, pro- tective packaging, and order processing are the major components of physical distribution in industrial chan- nels. Among all of these elements, inventory control has been one of the major areas in which recent marketing research activities have focused. Given the widespread availability of computer tech- nology and the more complete understanding of sophisti- Address correspondence to Dr. S. Altan Erdem, Department of Marketing, University of Houston - Clear Lake, 2700 Bay Area Boulevard, Houston, TX 77058-1098.

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Transcript of ereret00043545

  • 0019-8501/98/$19.00PII S0019-8501(97)00001-1

    Industrial Marketing Management

    27

    , 2129 (1998) 1998 Elsevier Science Inc. All rights reserved.655 Avenue of the Americas, New York, NY 10010

    Items to Consider for Just-in-Time Use in

    Marketing Channels

    Toward a Development of a Decision Tool

    S. Altan ErdemCathy Owens Swift

    This study focuses on an empirical analysis of variables as-sociated with the evaluation of inventory management tech-niques. There are 23 items that channel managers should ex-amine before deciding to use just-in-time as the primaryinventory control method in a particular channel network.These items can be grouped under the five categories of deliv-ery effectiveness, information system needs, spatial concerns,financial resources, and channel cohesiveness to form a cru-cial decision tool for channel managers. 1998 ElsevierScience Inc.

    INTRODUCTION

    Increasing competitiveness among industrial channelmembers has resulted in a growing awareness of variouscost-saving procedures in marketing. Efforts directed to-ward lowering the cost figures traditionally have focusedon the physical distribution functions of these membersas well as the production tasks. Transportation, ware-housing, inventory management, materials handling, pro-tective packaging, and order processing are the majorcomponents of physical distribution in industrial chan-nels. Among all of these elements, inventory control hasbeen one of the major areas in which recent marketingresearch activities have focused.

    Given the widespread availability of computer tech-nology and the more complete understanding of sophisti-

    Address correspondence to Dr. S. Altan Erdem, Department of Marketing,University of Houston - Clear Lake, 2700 Bay Area Boulevard, Houston, TX77058-1098.

  • 22

    S. ALTAN ERDEM is Assistant Professor of Marketing at the University of Houston-Clear Lake.

    CATHY OWENS SWIFT is Associate Professor of Marketing at

    Georgia Southern University.

    cated relationships in inventory management, numerousmethods of inventory control have evolved. Among thesemethods are just-in-time (JIT), manufacturing resourceplanning, optimized production technology, and flexiblemanufacturing systems [e.g., 1, 3, 8, 11, 14, 24, 29, 31,34, 4144].

    With the wide range of choices available, implementa-tion of the best inventory management system is criticalfor managers. Managers need an effective method forevaluating their operations to determine which of thesetechniques would be preferable. The purpose of thisstudy is to examine the elements that should be reviewedbefore implementing one of these inventory controlmethodsJIT.

    BASIC ISSUES OF INVENTORY CONTROL

    Regardless of the specific method that a managerchooses, there are certain aspects of an inventory man-agement system that can be used by any manufacturing-oriented or distribution-oriented firm [26]. Specifically,managers should stock merchandise according to profit-ability and should actively seek to eliminate stockouts.Managers need to decrease emphasis on less profitableitems and maintain desirable relationships among inven-tory levels of different products. Accordingly, a profit-able inventory management system should be cost-justi-fied and no more elaborate than necessary [17]. Surplusinventory (i.e., greater than the maximum operating level)indicates an inventory control problem, whereas excessinventory (i.e., greater than the excess policy) indicatesthe existence of an extreme inventory control problemthat requires immediate attention and action [27].

    Successful logistics management systems entail thesystems, total cost, and trade-off concepts [9]. From rawmaterials to finished goods, the management of inventoryflow embodies aspects of both opportunity and cost. Theinventory manager must constantly balance anticipatedopportunities against the associated costs.

    On the other hand, there are numerous opportunitiesand costs that the purchase and maintenance of large in-ventories provide. For example, large quantities of inven-tory-on-hand offer the opportunity for a sale to occurwithout needing to worry about stock-outs or waiting forreplenishment. Also, the purchase of large quantities ofinventory often provides various opportunities for signif-icant cost savings, vis--vis quantity discounts. In addi-tion, large inventories can reduce stockout risk due tosupply inconsistencies of lumpy demand.

    Several costs can occur as well. Large purchases re-quire large expenditures of cash or the use of valuablelines of credit (which are frequently needed elsewhere inthe firm). Storage, pilferage, and spoilage of inventory canalso counterbalance many of the proposed benefits.Therefore, managers must be in a position to make in-formed decisions about the benefits and costs of inventory.

    JUST-IN-TIME

    JIT derives various inventory levels for optimum ma-terials requirements and maximizes long-term efficiencyby focusing upon inventory management in the short-run.JIT basically describes an inventory control techniquethat has been used to schedule raw materials, compo-nents, or commodity inputs. Implementation of JIT con-cerns the production function from two unique perspec-tives: (1) it provides a method for deriving optimummaterials requirements and inventory levels in a produc-tion process; and (2) it maximizes long-term benefits byaccepting short-term dis-economies.

    The time which a product takes to be completed can beviewed as a function of motion and work [46]:

    What are the inventory control issues of

    concern to marketers?

  • 23

    product time

    5

    motion time

    1

    work time

    Based on the JIT philosophy, all those activities thatmake up motion time (such as materials handling, trans-porting, preparing, counting, etc.) need to be eliminated,as they are wasteful. On the other hand, other activities(such as fabrication and assembly) make up the worktime and add real value to the product. In production, it isimportant to pay attention to these activities, becausethey actually make the product worth purchasing by con-sumers.

    The companies using JIT must look beyond the pro-duction and purchasing areas and examine the potentialuse of JIT within their overall marketing strategies [35].For instance, in a manufacturing process, JIT involvesthe movement of (raw and semi-finished) goods along aproduction sequence. Because a distribution channel ba-sically represents the movement of (finished) productsalong a delivery sequence, one can examine the imple-mentation of JIT in the distribution function of the mar-keting mix. Accordingly, JIT represents a philosophy ofviewing the distribution network from a systems perspec-tive. It instills a problem-solving process to analyze theentire system and eliminates the inefficient componentsof it [16, 49].

    As is widely recognized, one of the central functionsof the distribution process is related to physical supply,storage, and transportation of commodities. When JIT isin use, these tasks are emphasized, because the tenets ofthe process are based on zero inventory. Even thoughthis implies a lack of a buffer stock [31], JIT use in pro-duction still allows some inventory to be kept as a safetystock [41]. This stock is maintained at a minimum level,so that inventory carrying costs can be minimized andlead time requirements can be significantly decreased[31, 36].

    When a manufacturing firm uses JIT, its purchasingroutines [7, 21, 40, 45, 48] need to be adjusted. The firmneeds to examine numerous practical concerns beforeswitching completely to JIT from a traditional modelsuch as economic order quantity [19, 25]. JIT implemen-

    tation strategy requires a multi-phase project plan [37],which includes issues such as layout design, lead timereduction, supplier integration, system stability, a pullsystem, etc. One needs to ensure that purchasing andaccounting personnel realize the rewards of the JIT-purchasing philosophy along with the details of day-to-dayroutines so that they do not oppose the decision to switchto JIT [20].

    As stated earlier, distribution represents a flow net-work, not unlike a production process. The main purposeof JIT in distribution is to get the proper amount of fin-ished goods from manufacturers and deliver them to re-tailers (i.e., end distributors such as mill supply house,VAR, service centers, etc.) while minimizing inventoryrequirements and maintaining channel satisfaction levels.The basic activities conducive to this process can besummarized as follows:

    1. forecasting retailer demand for goods;2. coordinating manufacturers production schedules with

    retailers demand schedules;3. maintaining accurate and timely information flows

    from retailers; and4. performing the delivery of products to retailers just in

    time to eliminate the excess inventory.

    JIT implementation requires not only systematic think-ing but also integration of different activities performedby numerous functional areas [10]. Identifying the salientissues involved in JIT implementation is essential. Cer-tain variables appear to be crucial in providing managerswith an opportunity to assign specific cost estimates tovarious alternatives and consider associated benefits ofinventory decisions. The items need to be evaluated bymanagers in deciding on the use of JIT and therefore se-curing the paths to increased profitability.

    This study was designed to ascertain the issues that in-ventory managers consider important in effecting JIT.Studying establishments that have successfully imple-mented JIT can provide guidance for inventory managersin considering adoption of JIT.

    This study concerns JIT users with

    significant experience.

  • 24

    THE STUDY

    The sample for this study consisted of 231 businesseslocated in a major southwest metropolitan area. The sam-ple was selected from Chambers of Commerce directorylistings. Following an in-depth review of the operationalstructures of the business establishments (eliminatingfirms with relatively greater involvement in services),204 of them were deemed appropriate for this study.These firms were industrial distributors with significantexpertise in inventory management and were all JIT us-ers. Executives in charge of inventory control were inter-viewed using a questionnaire designed to measure atti-tudes toward various aspects of inventory control and JIT.

    Respondents were asked to rate the importance of a setof 23 variables in selecting JIT as the primary inventorycontrol method. These variables were selected based on areview of the current literature concerning JIT imple-mentation. The initial set of variables was reviewed bysix inventory control managers and was adjusted andsimplified based on their comments. After this refine-ment, they appeared to be rather self-explanatory state-ments (accordingly, further explanation was avoided, be-cause it could bias the participants responses). A 7-pointLikert scale was used, where 1

    5

    very important and 7

    5

    very unimportant.Information was also collected regarding the business.

    Almost two-thirds (63.7%) of the respondents had annual

    sales of $2.5 million or less. Almost half (46%) classifiedthemselves as distributors, 33% were wholesaler/distrib-utors, 12% were manufacturer/wholesalers, 6% werewholesalers and 3% were manufacturers (see Table 1).Thus, the sample was representative of channel membersat various levels.

    ANALYSIS AND RESULTS

    To understand the underlying dimensions of the scale,factor analysis with varimax rotation was performed onthe entire sample across all 23 items. Factors were retainedwith an eigenvalue of one or greater. A 0.60 cutoff wasused for the factor loadings. In the initial rotation, six ofthe items were eliminated due to inadequate factor loadings.

    Five factors, consisting of 17 items, appear to havecaptured the dimensionality in the sample, and explained78.8% of the total variance in the data set. The factorswere identified as delivery effectiveness, information systemneeds, spatial concerns, financial resources, and channelcohesiveness (see Table 2).

    Factor 1, labeled delivery effectiveness, was com-prised of timing of delivery, demand estimation, qualityof delivery, proximity of suppliers, cohesiveness withsuppliers and competition in the market. Factor 1 empha-sizes the crucial role of the delivery process in coming upwith a unique niche in distribution functions.

    Five selection factors are identified.

    TABLE 1Sample Characteristics

    No. ofCompanies

    SalesAge of

    CompaniesClassification

    ,

    $2.5 mill.

    .

    $2.5 mill. SIC Code

    Distributors 94 22 72 5171,5192, 5065, 5032,5039, 5049, 5046, 5052, 5113

    324

    Wholesalers/Distributors 67 16 51 5063, 5065, 5084, 5093, 5052, 5113 229

    Manufacturers/Distributors 25 19 6 3251, 3271, 5032 533

    Wholesalers 12 12 0 5198, 5085, 5063 426Manufacturers 6 5 1 3291, 3363, 3341, 3351 334

  • 25

    Regardless of whether the specific function beingevaluated is manufacturing, wholesaling, or retailing, in-ventory needs must be anticipated, secured, maintained,and monitored. Although the estimation of inventory re-quirements to fulfill manufacturing processes tends to bemore deterministic than, say, anticipating final consumerdemand levels, estimates must be made nonetheless. His-torically, the primary consideration of inventory manage-ment has been to provide supplies of product to meet theexpected volume of business over a predetermined deci-sion period (such as a year). To justify the selection ofJIT, a business in any of these various sectors should beable to show that implementation of JIT can reduce cer-tain unnecessary routines and reduce organizational costswithout compromising quality standards.

    An important aspect of demand estimation is accu-rately anticipating seasonal and other cyclic changes.Special forecasting methods may be needed for this pur-pose. In certain business settings (e.g., small businessunits), some studies have suggested how managers canuse specific techniques to include these demand swingsin their planning cycles [5]. Such techniques will be par-ticularly useful for wholesalers and retailers of sea-sonal items (e.g., holiday items and lawn and gardensupplies).

    Understanding the consumer demand is an importanttask, because retailers demand is basically a derived de-mand, partially determined by consumer demand. Meetingthe demand requirements on time, both in the promptnessand quantity of delivery, is a challenging task for the dis-tribution manager. The ability to deliver promised goodsto other intermediaries such as retailers (and eventually,final consumers) is critical to the long-run viability of thefirm [12].

    The degree of flexibility on this customer service is-sue may indeed prompt consideration of alternative in-ventory management methods. For example, an inven-tory system that seeks to eliminate (minimize) backupinventories, vis--vis a JIT-type approach, will tend to in-crease the likelihood of stockouts. Consequently, manag-

    ers may wish to avoid this and similar approaches infavor of more stock-intensive methods under such condi-tions.

    Factor 2 was named information systems. The com-puter software and hardware needs, together with theavailability of automation, were included in this factor.

    The availability of technological resources to facilitatethe use of automated distribution processes is crucial.Many of the sophisticated inventory management sys-tems such as JIT require complex computer hardwareand software systems [30]. The ability to measure andmaintain manufacturing floor or distribution stockingarea inventories on a continuous basis is essential for

    Channel intermediaries need to make

    adjustments to implement JIT.

    TABLE 2Results of Factor Analysis

    Factor Loading

    Factor 1: delivery effectivenessTiming of delivery 0.84449Demand estimation 0.83653Quality of delivery 0.82619Proximity of suppliers 0.82543Cohesiveness with suppliers 0.79365Competition in the market 0.75964

    Cronbachs alpha

    5

    0.8867Factor 2: information system needs

    Computer software needs 0.90246Computer hardware needs 0.89211Advanced automation 0.84165

    Cronbachs alpha

    5

    0.8624Factor 3: spatial concerns

    Availability of space 0.84557Cost of space 0.83455Quality of space 0.82247

    Cronbachs alpha

    5

    0.8591Factor 4: financial resources

    Cash-on-hand 0.83763Short-term debt 0.77576Long-term debt 0.68445

    Cronbachs alpha

    5

    0.7654Factor 5: channel cohesiveness

    Vertical integration 0.85648Competition with suppliers 0.78798

    Cronbachs alpha

    5

    0.6678

  • 26

    zero-buffer methods. In addition to hardware and soft-ware, the implementation, maintenance, and system up-grade costs can be high.

    Human resource needs must also be carefully consid-ered. Decisions must be made regarding the hiring of in-house specialists or securing outside consultants. The to-tal of these information systems costs must be balancedagainst the benefits gained by using correspondinglymore sophisticated inventory management systems, espe-cially JIT.

    Factor 3 captured the dimension of spatial concernsin selecting JIT. Availability of space, cost of space, andquality of space are the items comprising this factor, in-dicating the importance of return on space (ROSP).

    The key issue to be evaluated is the cost of space rela-tive to the value of its utilization. Under selling and man-ufacturing situations, a return on space (ROSP) valuecan be calculated for various inventory control tech-niques. Accordingly, the alternative with the highest netROSP is selected. This element calls for a direct compar-ison between revenue generation, vis--vis selling/manu-facturing, and the value of inventory space.

    Productive utilization of physical space by a businessrepresents another critical consideration of inventorymanagers. Space can be acquired by ownership, rental, orlease. The key issue that must be evaluated here is thecost of space relative to the value of its utilization. Forexample, if selling space is able to generate $15 persquare foot per month, it has greater value than if thesame space generated $12 per square foot. A retail man-ager will make this kind of comparison any time that analternative product line is being considered.

    A similar productivity comparison can be used formanufacturing analysis. For example, if a manufacturingarea is generating $40 value-added per square foot, it has agreater value than areas generating $30 per square foot.Making necessary ROSP comparisons across selling/man-ufacturing/warehousing space is difficult. Despite thesedifficulties, however, relative assessments must be made.

    The role of financial resources has been captured byFactor 4. The basic sources of funding, cash on hand,

    short-term debt, and long-term debt, need to be consid-ered before deciding on JIT.

    It has been shown in the literature that the financial re-sults of JIT implementation are far more than a decreasein inventory [13]. The combination of increased produc-tivity, cost reduction, and revenue growth results in netincome increase. As a result, JIT use is to be perceivedby industrial marketers as a strategic competitive deci-sion instead of just an operations tactic [15]. Even thoughthe results of the technique are promising, being able touse the system is partially a financial concern. An impor-tant consideration in the selection of an inventory man-agement technique is the availability and management offunds.

    In general, cash, short-, and long-term debt representbasic funding sources. The accurate assessment of fundsrepresents an important consideration in the selection ofan inventory method. For example, in retailing, the tradi-tional working capital analysis may be inappropriatefor inventory evaluation under decision since the currentassets include inventory value. By including the bookvalue of inventory in the value of working capital, theanalysis will likely understate/overstate the funds avail-able for future inventory acquisition. The evaluation ofworking capital for this application should reflect currentassets based upon the current market value of inventory(if it were to be sold immediately in its present form). Inother words, working capital should be fully reduced bythe book (market) value of existing inventories. In thisway, a conservative picture of funds available for new in-ventory acquisition is provided.

    The accurate determination of available funds is criti-cal because without sufficient levels of cash and/orcredit, large purchases and their associated quantity ben-efits are impossible. Indeed, the underlying need forfunds rationing will be an important consideration in thepurchase of inventory.

    The last factor was labeled channel cohesivenessand contains the items vertical integration and competi-tion with suppliers. The necessity of having close socialrelationships with suppliers for the successful implemen-

    Similar decisions are made by channel

    members at different levels.

  • 27

    tation of JIT requires channel managers to pay attentionto their social network.

    Because JIT philosophy proposes a relationship mar-keting approach [38], this aspect of the analysis assessesthe quality of interactions between a business unit and itsvendor(s). Even though a wide dispersion of suppliersgreatly precludes many efficiencies of JIT [4, 32], sup-plier evaluation goes beyond a concern for supplier loca-tion. In this dimension, one needs to examine variousfinancial relationships, order processing, reorder sched-uling, and support services.

    The degree of channel cooperation among all partiesmust be considered before JIT is selected, because it re-quires an atmosphere of mutual cooperation, loyalty, andtrust [31]. For example, the success of buffer-stock mini-mization becomes extremely questionable in a hostilechannel environment. The inverse relationship betweencooperation and conflict [2, 18, 39] limits the benefits ofthe zero-stock feature of JIT under conflict. In the eventof conflict, management style and organizational struc-ture become relevant issues, because they represent thepotential to reduce (or solve) channel conflicts. Leader-ship styles and attitudes of members are important in thispotential [28, 47]. It has been shown that participativeleadership motivates cooperation and decreases conflict[23]. The perceived ability of a manager to mitigate con-flict and encourage cooperation among all necessarychannel participants will guide the selection of an inven-tory method when JIT is the major option.

    When competition is not intense, an organization maytake time to distribute through different intermediaries atvarious levels. On the other hand, when competition isintense, the same managers like to go through a channelstructure with very few levels. As a result, the nature andthe degree of competition have to be analyzed before achannel structure and the distribution strategy are se-lected. Because vertical integration should increase coor-dination efforts within a channel structure, it can be per-ceived as an element that lowers the negative effects ofcompetition [6].

    MANAGERIAL IMPLICATIONS

    In considering JIT implementation, channel intermedi-aries have several opportunities. They can move forwardin the channel and develop a JIT supply relationship withtheir customers or backward and implement a JIT rela-tionship with the manufacturers who supply them. Thus,the findings of the study have implications for channel

    members as both marketers (to retailers) and as custom-ers (of manufacturers). There are a number of salient is-sues associated with inventory management that channelmembers should consider in selecting JIT.

    Delivery Effectiveness

    The first factor, delivery effectiveness, included tim-ing of delivery, demand estimation, quality of delivery,proximity of suppliers, cohesiveness with suppliers, andcompetition in the market. This supports similar findingsin other studies [38] that emphasize the importance of thephysical distribution system. The quality of service of-fered by a marketer in a JIT relationship depends on thevendors ability to deliver the product on time and in theproper amounts. Channel members will need to coordi-nate manufacturers schedules with the demands of re-tailers. Marketers may need to consider moving closer tothe customer or perhaps using private carriage systemsrather than common carriage.

    As a customer, channel members should recognize theneed to track the vendors record on delivery perfor-mance. The customer may also want to analyze the vendorscommitment to other buyers, which may strain the deliv-ery capabilities of the supplier. As a customer, the channelmember may be asked for a blanket purchase order, andinformation on demand estimates will have to be shared.

    Information System Needs

    The dimension of information system needs includescomputer software needs, computer hardware needs, andadvanced automation. As a marketer, the channel mem-ber needs to have vital information on each customer. Toenable the exchange of information with customers, themember will need a sophisticated hardware system aswell as customized software. Their customers will needto share demand forecasts as well as logistics informa-tion. Any changes in retail demand scheduling will needto be sent immediately to the marketer. Therefore, imme-diate follow-up with the customer is warranted.

    When acting as a customer, the channel member needsto plan bills of materials. In addition, special JIT softwarewill have to be used that includes manufacturers specifi-cations, materials planning, and manufacturing control.

    Spatial Concerns

    Spatial concerns contains the items availability ofspace, cost of space, and quality of space. The channel

  • 28

    member, as marketer, must recognize that materials man-agement resources must be increased. This may call foran increase in warehouse capacity, and inventory levels.The marketer will have to hold goods for a longer periodof time and will have to do a better job of managing ca-pacity.

    As a customer, the channel member may need to makephysical plant changes. Specifically, because inventorieswill not be as large for any single retailer, the intermedi-aries may be able to expand their own customer bases.

    Financial Resources

    Included in the financial resources dimension are cash-on-hand, short-term debt, and long-term debt. As a mar-keter, the channel member should recognize that JIT im-plementation is a high risk proposition. Considerableresources of the company will be devoted to making thechanges required for a JIT system.

    JIT implementation also creates considerable risk forthe channel member as a customer. Considerable invest-ments will be made in becoming involved with JIT. Thefirm needs to ensure that resources are adequate and beprepared to make appropriate investments.

    Channel Cohesiveness

    Channel cohesiveness concerns both vertical integra-tion and competition with suppliers. The channel mem-ber, as a marketer, must be very selective in identifyingcustomers with whom they wish to implement JIT. Thiswill, of necessity, involve a closer relationship with theretailer, and concentration on present customers, ratherthan new customers. Even the role of the salespersonchanges.

    As a customer, the channel member will need to en-sure that there is a direct relationship between the planningdepartment and the supplier. This relationship should beconsidered in all planning activities. The focus should beon value added service on the part of the supplier.

    LIMITATIONS

    There are several limitations to this study. The surveyswere collected in a geographic region of the southwest,limiting the generalizability of the results.

    In addition, the managers who were interviewed werea convenience sample. They were all prescreened to de-termine that they were in charge of inventory control andwere either using or considering a JIT system. However,

    because the respondents were not chosen randomly, re-sults cannot be generalized.

    Finally, this was an exploratory study. As such, therewere no prior hypotheses to be tested in the study.

    CONCLUDING REMARKS

    This article has proposed tentative scale items to beused in implementing JIT in distribution channels. An at-tempt was made to capture the core issues associatedwith inventory management in general, and JIT in partic-ular, and to reveal the commonalities across variouschannel members at different levels.

    There appear to be five factors considered by the man-agers in selecting JIT. The issues of delivery effective-ness, information system needs, spatial concerns, finan-cial resources, and channel cohesiveness were presentedas dimensions relevant to JIT use.

    This study involved the use of exploratory factor anal-ysis. Before any generalizations can be made, furtherwork is needed with larger and different samples usingalternative techniques. Then a structural equation modelbetween common factors of JIT use and a given market-ing feature can be established for future inquiry. Thisstructural equation will express the relative significanceof each factor in terms of its marketing implications. Byso doing, the contribution of each JIT attribute can be ex-amined within the field of marketing.

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