Challenges Facing Electronic Agents and Retailers in Jordan: Report

This report investigates the challenges faced by electronic agents and retailers in Jordan's market, focusing on the B2B relationships within the electronics sector. The study explores the impact of e-commerce, government initiatives, and market dynamics on retailers and agents. The research employs a quantitative methodology including surveys with 100 retailers and interviews, along with statistical tools like factor analysis, reliability analysis, correlation analysis, AHP, SEM and regression analysis to identify key challenges. The report examines factors such as expected benefits, retailer retention, price volatility, warranty policies, payment facilitation, and maintenance. It presents a research framework with hypotheses and discusses the findings, including the significant relationships between independent and dependent variables. The conclusion highlights the major challenges and their implications for the electronic industry in Jordan, emphasizing the need for strategies to improve retailer-agent relationships and foster market growth. The study also includes a literature review, research methodology, and detailed data analysis, offering valuable insights into the Jordanian electronic market.

Exploring Challenges Facing the Relationship between Electronic Agents and Retailers
Evidence from Jordan

Table of Contents
Abstract......................................................................................................................................3
Introduction................................................................................................................................4
Literature Review.......................................................................................................................5
Research Framework..................................................................................................................6
Research Hypothesis..................................................................................................................7
Hypothesis No 1.....................................................................................................................7
Hypothesis No 2.....................................................................................................................7
Hypothesis No 3.....................................................................................................................7
Hypothesis No 4.....................................................................................................................7
Hypothesis No 5.....................................................................................................................7
Hypothesis No 6.....................................................................................................................7
Research Methodology...............................................................................................................8
Dependent Variables..............................................................................................................8
Independent Variable..............................................................................................................8
Population..................................................................................................................................8
Sample Size................................................................................................................................9
Data Collection...........................................................................................................................9
Data Analysis & Tools.............................................................................................................10
Factor Analysis Tool............................................................................................................10
Reliability Analysis tool.......................................................................................................10
Correlation Analysis.............................................................................................................10
AHP “Analytical Hierarchy Process”...................................................................................11
SEM “Structured Equational Model”...................................................................................11
Regression Analysis Tool.....................................................................................................11
Result and Discussion..............................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

Abstract
The aim of the research paper is to identify the challenges face by the electronic agents and
retailers in Jordan. There are different factors affecting the both retailers and agents. Retailers
are the key payer who has the importance in the economy of the country. Agents are the one
who are directly affected by different factors and challenges. Multiple challenges have been
discussed and mentioned in literature review. Research methodology has defined adopted
sampling technique and research population has been mentioned in research methodology.
Research model and hypothesis has shown that the positive and significant relation in
between the dependent and independent variables. The outcome of the result from applied
tools has shown the remarkable outcome where all tool has shown the significance outcome
which clearly defined the challenges face by electronic agents and retailers in Jordan.
Keywords: Electronic Products, challenges, factors, retailers, agents, Jordan Market

Introduction
After the invention of Internet and getting into the business, many researchers have taken up
their steps towards identifying the challenges faced by retailers. It has become important to
understand that the how it affects the development of the electronic industry in Jordan.
Ecommerce is considering the bigger revolution in the business world. As it allows business
to make trade in all over the world. Jordanian Government is keen to make their country as
mobile nation where the aim is to provide the electronic services to the people of Jordan (Al-
Rawad, 2015). The government of Jordan allows their Small and medium enterprises to adopt
ecommerce strategy in order to enhance their business to broader land. Small and medium
enterprises considered the backbone of the Jordan economy where the contribution of small
and medium enterprises in the economy of the country is 90% amongst all registered
companies. The government of Jordan welcome the right regulatory infrastructure to motivate
the electronic industry and enjoy the advanced level of modernization.
Thus, there are different creative and innovative commercial distributions have been
introduced by keeping the objective of making advantage for both consumer and
manufacturers. The major challenges face by the electronic agent and retailers is the
invention of Ecommerce, where the commercial format has enabled the purchase and
information of sales of electronic goods has been done through communication networks (Al‐
maghrabi, 2011). The commercial format of electronic sector in Jordan has brough the
multiple benefits and those are obvious, as it brings the global reach. It connects the different
buyers and sellers. Thus, the analysis of the e-commerce in the electronics sector in Jordan
has taken the general and integrative prospective which do not consider the final consumers

other than having their importance. Such, process has justified the case of ecommerce in B2B
sector where ecommerce in B2B avoid different elements.
Literature Review
The literature of the research will define with the support of getting the fresh data from the
targeted population in the research paper (Alireza, 2011). There is different variable which is
used in the research work in order to examine the challenges face electronic agents and
retailers in the Jordan market. Retailers are the one who play important role in the economy
of the country. It has its own importance in the economy of the nation. In return it expects
some of the benefits form the different market agents (Altarifi, 2015). Different benefits may
include that they might have the great long-term relation and on the basis of that they can
improved the quality of their decisions. Agents and retailers have the strongest link and
relationship in between in order to do business in the competitive market, therefore, they will
be in contact. They share product features and availability and show the assistance in
promotional and marketing activities (Amini, 2012).
There is another tool which both retailer and agents face in recent time is the instability in the
prices of the products. There are different products available in the market with the different
range of prices where the consumer can find in the retail outlets in the market of Jordan.
There is huge difference found into the prices of the wholesalers and retailers as because
wholesalers get the range of products in bulk quantity and sell to retailers by keeping their
sale margin in it. Therefore, the margin of prices exists (Chen, 2010).
Different factors affected the retailers as the product claim takes lot of time in their
maintenance, where the majority of consumer send complaints to agent that retailer are very
poor in maintaining the products management, because it take great amount of time in it and
that affects the consumer market and for this reason the market share is losing by the time.

Retailer more often feel that their job is to sell the products and rest leave it to consumer. On
the other hand, company bound to claim the damaged and unresponsive products on time but
retailers take extra time in managing those (Abu-Samaha, 2007). The major reason in this is
retailers don’t understand the terms and conditions included in the warranty documents. That
is the reason that they are not sure about the right and duties about the legal document related
to the product. Payment facilitation, has the direct linkage with the retailer retention, retailer
can be retained by offering them the good financial benefits and retailer also interested to pay
for the electronic agent in define period of time. That means the retailer can pay amount to
agent bi annually from the time of purchase (D, 2016). Retaining the retention is the major
process for engaging the existing retailers to make a purchase and become the member for
longer period of time. Agent must give them the confidence that they will take care of their
every aspect.
Research Framework
H1
H2
H3
H4
H5
Retailers Retention
Expected Benefits
Follow Up
Price Volatile
Warranty Policy
Payment
Facilitation
Maintenance

H6
Research Hypothesis
Hypothesis No 1
Ho: Expected benefits has no positive and significant impact onto the retailer’s retention.
H1: Expected benefits has positive and significant impact onto the retailer’s retention.
Hypothesis No 2
H1: Follow up has no positive and significant impact onto the retailer’s retention.
H0: Follow up has positive and significant impact onto the retailer’s retention.
Hypothesis No 3
H0: Price Volatile has no positive and significant impact onto the retailer’s retention.
H1: Price Volatile has positive and significant impact onto the retailer’s retention.
Hypothesis No 4
H0: Warranty Policy has no positive and significant impact onto the retailer’s retention.
H1: Warranty Policy has positive and significant impact onto the retailer’s retention.
Hypothesis No 5
Ho: Payment Facilitation has no positive and significant impact onto the retailer’s retention.
H1: Payment Facilitation has positive and significant impact onto the retailer’s retention.
Hypothesis No 6
Ho: Maintenance has no positive and significant impact onto the retailer’s retention.
H1: Maintenance has positive and significant impact onto the retailer’s retention.

Research Methodology
Research methodology is used to describe the research framework which shows the
relationship in between the dependent and independent variables (Sanayei, 2013). This
methodology is used to describe the different tools which is used to measure the challenges
facing the relationship in between the electronics agents and retailers in Jordan. In this phase
of research work, different research methodology has been defined clearly which includes the
research targeted segmentation and research approach. In order to examine the challenges
faces by the agents of electronic industry in Jordan, survey has been conducted. Further, the
outcome of the conducted survey been further analyzed in different statistical tools to have
the clear scenario and conclusion been made on the basis of the outcomes. Following are the
dependent and independent variables used in this research work,
Dependent Variables
 Retailer retention
Independent Variable
 Expected Variable
 Follow up
 Price Volatile
 Maintenance
 Warranty policy
 Payment Facilitation
Population
Population has been defined in order to examine the challenges face by the relationship in
between electronic agents and retailers in Jordan. Hence, in order to get the responses from
the targeted population the well-structured research questionnaire has been designed. Since,

this is the qualitative research therefore, open ended interview questionnaire has been made.
Thus, Purposive sampling techniques has been used (Abbad, 2011).
Sample Size
Normally, there are two type of sampling methods has been used widely those are,
 Simple random sampling method
 Random sampling methods
We have targeted the 100 retail stores in Jordan, to have their reviews bout the different
challenges face by the electronic agent in between retailers. Targeted electronic agents are,
 Samsung
 LG
 Sony
 Sharp
 Panasonic
Data Collection
The data has been collected with the support of interview conducted with the targeted
population. Collected data been further analyzed and in different statistical tools. Analyzed
defined the consistency of the research framework and test the hypothesis. Different tools
have been used to identify the challenges faces by the electronics agents with the retailers in
Jordan. Following are the tools used in research framework in order to make the conclusion,
 Factor Analysis Tool
 Reliability Analysis tool
 ANOVA “Analysis of Variance”
 AHP “Analytical Hierarchy Process”

 SEM “Structured Equational Model”
Data Analysis & Tools
Factor Analysis Tool
Factor analysis tools is used to examine the impact of the different constructs used in the
research questionnaire. Research questionnaire has been designed in order to examine the
challenges faces by the electronics agents and retailers in Jordan. Factor analysis is the
commonly accepted tool used for identify different factors affecting the variables used in the
research framework.
Reliability Analysis tool
The reliability analysis tools has been used in order to explore the reliability of the variables
used in the research framework. This tool is important to examine as it shows the reliability
and consistency of the different variables. Identification of the research variable is very vital
as it allow them to use for further analysis. It is used to find out that the variable is reliable
enough to use for further analyzation and if the variable is not reliable then it will have no
impact on to the research model (Ahmed, 2011). reliability analysis tools are important
because the consistency of the variable will be measure by using this tool. if the value of
variable is exceeding to the value of Cronbach alpha then the particular variable considered
null and void, if the value of Cronbach alpha lies within the limit then this variable is
consistent and reliable to analyze further.
Correlation Analysis
This tool is used to identify the relationship in between the dependent and independent
variables. All variables used in the research model are used in order to get the relationship in
between them and conclusion has also been made on the basis of their level of relationship
have in between the dependent and independent variables.

AHP “Analytical Hierarchy Process”
Analytical hierarchy Process is type of statistical tool used to examine the variable used in the
research model for decision making. This statistical tool has much worth, while making the
decision about any research variable. This tool has different levels where the variable has
been placed. By using such tool most critical and supporting variable can be found which
play big role in making decision about the particular variable. It has three different levels i.e.
 Most crucial factor
 Supporting factor
 Maintaining factor
Most crucial factor identifies that particular variable require immediate action to remove the
factor in order to make the conclusion. While supporting factor is used to support the critical
factor. While maintaining factors does not have such worth and importance. It is only used to
show their presence other their existence does not make any impact onto the other variable is
used in the research work (Al-dweeri, 2017).
SEM “Structured Equational Model”
Structure equational model has been used to explore the impact of independent and
dependent variables used in the research paper. SEM is the process of multivariate statistical
analysis techniques which is used to examine the structure relationship in between variables.
Structure equational model is the process of making the combination of factor analysis and
multiple regression analysis which is used to measure the different variables and latent
constructs.
Regression Analysis Tool
Regression analysis tool is used measured the relationship between the independent and
dependent variables for at least one or more than one variable at the same time. It is one of

the most powerful and reliable sources for measuring the variables. It is also known for the
predictive modelling, which used to examine the dependent and independent variables.
Variables Relation S.E. P H Status
Retailer Retention <--- Expected Benefits .045 .001 H1 Accepted
Retailer Retention <--- Follow Up .057 .000 H2 Accepted
Retailer Retention <--- Price Volatile .052 .003 H3 Accepted
Retailer Retention <--- Warranty Policy .051 .000 H4 Accepted
Retailer Retention <--- Payment Facilitation .059 .005 H5 Accepted
Retailer Retention <--- Maintenance .065 .005 H6 Accepted
The above outcome of the Structured Equational Model has shown that all variables has been
tested and showing their positive relationship with the dependent variable. All hypothesis has
been tested and verified.
Result and Discussion
The prime objective of the research work is to examine the challenges face by the electronics
agents and retailers in Jordan (Patel, 2008). Where the research interview questionnaire has
been made in order to get the responses from the defined targeted population in Jordan.
Though, we targeted the 100 retailers from the market of Jordan. The responses have been
shared used for analyzation in defined statistical tools. The outcomes of the result have
shown that result is reliable and consistent, which can further be analyzed in different tools
for making the conclusion on the basis of their outcomes. Hence, AHP has shown the most
critical factor in retaining the customer in electronic industry in Jordan. Correlation analysis
tool has shown that the variables have positive and significant relationship in between them
which prove the designed hypothesis (Shannak, 2013). All variables come under the

Cronbach alpha value which presents that variable has significance between them. Structural
equational model has shown that all variables has positive and significance impact in between
each other, which also shows that the designed hypothesis are current and tested.
Conclusion
The conclusion of the research paper on exploring the challenges face the electronic agents
and retailers in Jordan has shown that there are different factors and challenges which has
affected the electronics industry in Jordan (Abu-Shanab, 2010). The invention of ecommerce
has played the vital role in bringing more challenges in particular sector in Jordan. Initially
the electronic agents have been the market leader but ecommerce has allowed many other
international agents to come in the market and share the market share with them. The
outcome of the applied tools has shown the tremendous result, where the research model has
shown the remarkable impact to the dependent variables. Design research hypothesis has
shown that hypothesis is well set. Other applied tools have also shown the positive impact
onto the different variables (Naoum, 2014). Reliability analysis has showing that selected
data is consistent and reliable for further analysis.

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