An application of the analytical hierarchy process to international marketing: Selection of a foreign distributor

Foreign distributors are often used by small and medium-sized firms for establishing an initial presence in overseas markets. While various selection criteria for foreign distributors have been noted in the international marketing literature, they are often subjective and judgmental in nature. In addition, the large number of variables as well as the consideration of both objective and subjective criteria suggest that a method which has the ability to quantify and synthesize both objective and subjective criteria is preferred. The recommended approach is the Analytical Hierarchy Process (AHP). In this paper, the characteristics of the AHP are discussed and illustrated within the context of the foreign distribution selection process. For many small and medium-sized firms which lack sophisticated market research/decision analysis tools to assist them in the foreign distributor decision, the AHP is a highly flexible and versatile substitute. © 1995 by The Haworth Press, Inc.