ISSN: 2319-7285
Sebhatleab Tewolde, Kimberlee D. Snyder, Mussie T. Tessema, Samuel Tsegai and Semere Simon
This study focuses on the effects of product characteristics, specifically, seasonality, age and shelf life on sellers’ trade approaches. It discusses what trade approaches the seller firms use (cash, credit, and/or both) and the sales trend or seasonality, age and shelf life of their main products. As a result of the research, the role of product characteristics on sellers’ trade approaches has been verified to a certain extent. The research has revealed that, seasonality and age of product matter in deciding sellers’ trading practices. The findings show that, products with seasonal sales trend and relatively younger in the market are traded more on both credit and cash compared to those that are relatively not seasonal and older. The paper offers insights to executives of companies to govern with due consideration to the role that these product characterisitcs play on seller trade practice. Implications of these findings and future research directions are discussed