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Becoming a preferred customer : The influence of proximity and public procurement on receiving a preferred customer status.

Praas, N.H.J. (2016) Becoming a preferred customer : The influence of proximity and public procurement on receiving a preferred customer status.

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Abstract:The purchasing function of a firm is more and more seen as a strategic relevant function, capable of creating a competitive advantage. One way of creating such an advantage is through receiving a preferred customer status from suppliers, and consequently, receiving preferential treatment. The focus of this research is on identifying the influence of proximity of the buyer to the supplier and obligatory public tendering procedures on having a preferred customer status with the supplier. These two new, not yet researched, influences are placed in a model alongside supplier satisfaction. This research resolves around the question: What is the influence of proximity and public tendering procedures on the preferred customer status of a buyer? Data is gathered amongst suppliers of a public organisation and analysed with PLS path modelling software. The results show that the chance of having a preferred customer status is higher if the supplier is located in the same region as the buyer. Also, the quality of the public tendering procedures used improves the probability of receiving a preferred customer status. The share of sales realised through public tendering procedures does not have an influence. This research ultimately provides suggestions for buying firms to increase the likelihood of receiving a preferred customer status from their suppliers.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/71357
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