Abstract: Interfirm power and its exercises have been considered as one of important tools for marketing channel management and intensively studied by researchers. Bilateral deterrence theory and conflict spiral theory are the two theories frequently applied for explaining the relationship between Interfirm power and its exercises. Nevertheless, different cognitive variables playing a mediating role in the two theories will lead to different and even contradictory predictions. In 2014, Zhuang et al. discussed the appropriateness of the two theories in the study of channel power and concluded that bilateral deterrence theory was more appropriate and proposed a revised model of Lawler’s bilateral deterrence model, namely Z model. Since the two mediators of cognitive variables in Z model, namely “fear of retaliation” and “expectation of attack”, have not been empirically tested, the appropriateness of Z model could not be truly confirmed. To fill this gap, this paper tests the mediating role of the two cognitive variables between channel power and its use.

Key words: Z model; bilateral deterrence model; fear of retaliation; expectation of attack; channel power; exercises of power