The purpose of this study is to develop and test a customer defection model describing an organizational buyer’s propensity to stop purchasing from a supplier within a multisource buyer–seller relationship. A total of 168 employees who worked in purchasing using multiple suppliers in procurement were used for this study. Findings provide strategies for the salesperson to utilize in order to reduce the customer’s perception of available alternatives (e.g., increase trust in the salesperson) and defection (e.g., increase customer satisfaction and commitment). Findings also show that the relationship between satisfaction and commitment is fully mediated by trust within a multisource relationship.
Ganesan states, “a buyer/seller relationship is a function of
two main factors: mutual dependence and the extent to which
they trust one another” (1994, p. 1). Increasing levels of trust
within a buyer–seller relationship can act as an organizing
principle that can balance the levels of dependence (McEvily,
Perrone, and Zaher 2003). In addition, if a buyer intends to
repurchase from a supplier, then there is little need to become
involved in the process of searching for alternatives (Johnson,
Barksdale, and Boles 2001). Therefore, the buyer’s trust in a
salesperson affects the perceived benefits necessary to switch
sales representatives and leads to a decrease in the buyer’s
perception of acceptable alternatives.
The purpose of this study is to develop and test a customer defection model describing an organizational buyer’s propensity to stop purchasing from a supplier within a multisource buyer–seller relationship. A total of 168 employees who worked in purchasing using multiple suppliers in procurement were used for this study. Findings provide strategies for the salesperson to utilize in order to reduce the customer’s perception of available alternatives (e.g., increase trust in the salesperson) and defection (e.g., increase customer satisfaction and commitment). Findings also show that the relationship between satisfaction and commitment is fully mediated by trust within a multisource relationship.
Ganesan states, “a buyer/seller relationship is a function of
two main factors: mutual dependence and the extent to which
they trust one another” (1994, p. 1). Increasing levels of trust
within a buyer–seller relationship can act as an organizing
principle that can balance the levels of dependence (McEvily,
Perrone, and Zaher 2003). In addition, if a buyer intends to
repurchase from a supplier, then there is little need to become
involved in the process of searching for alternatives (Johnson,
Barksdale, and Boles 2001). Therefore, the buyer’s trust in a
salesperson affects the perceived benefits necessary to switch
sales representatives and leads to a decrease in the buyer’s
perception of acceptable alternatives.
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