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Antecedents and benefits of the preferred customer status in a buyer-supplier relationship : a multiple case study

Steffen, Jan Sebastian (2015) Antecedents and benefits of the preferred customer status in a buyer-supplier relationship : a multiple case study.

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Abstract:In recent years, the concept of the preferred customer status including its benefits and antecedents enjoyed a considerable increase in awareness. With benefits such as costs savings, increased flexibility as well as preferential resource allocation, the preferred customer concept provides a sustainable source for competitive advantage. However, academics have hardly analysed the concept from a practical perspective. Thus, this explorative case study elaborates four different buyer-supplier relationships of a global acting industry conglomerate. In order to identify antecedents, history as well as benefits of each buyer-supplier relationship, the cases have been investigated using a bilateral perspective. There are various benefits of the preferred customer concept proposed by scientific literature that this case study confirms. These range from increased production flexibility, enhanced transparency to preferred treatment during supply shortages. However, this case study adds advantages such as long-term contracts, top-management attention, and long-term commitment. In addition to benefits of the preferred customer status, various antecedents as well as historical aspects have been found. Antecedents include company size, purchasing volume, as well as future business opportunities. On the other hand, aspects such as reputation and status of a company have not been covered yet, but proposed as additional antecedents of the preferred customer status.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67384
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