Choice of Marketing Channels by Small Traders: The Case of Rubber Traders in Jambi Province, Indonesia

Rubber traders are important to facilitate the farmers in distributing rubber to buyers, in a rubber marketing channel. However, study of marketing channel in trader´s level is rare. Thus, the study of choice of marketing channel on trader level is able to fill the gap and to complete the diverse of research.

The data collection for this study was conducted in the Jambi Province, Indonesia. Stratified random sampling was applied in order to select districts and villages. All active small traders in the selected villages were chosen to be the sample. There are 199 respondents were qualified to be analyzed further. Multinomial Logistic Regression Model is employed to determine the factors affecting the channel choice.

Based on the result, traders tend to sell to other channels instead of factories if location is far from the factory, traders has relatively low quantity to sell, other traders has less bureaucratic procedure, and there is better information access. While, factors significantly affecting decision of channel choice are location, credit access, information access, profitability aspect, and traders characteristics.

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