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Satisfying suppliers in order to become a preferred customer: The influence of three major social variables on this process

Lelij, R. van der (2016) Satisfying suppliers in order to become a preferred customer: The influence of three major social variables on this process.

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Abstract:In many firms the role of purchasing has changed from just a buying function into a strategic function which can create a competitive advantage. A competitive advantage can be reached by becoming a preferred customer of a supplier and, by that, getting a preferential treatment from this supplier. Supplier satisfaction is seen as a necessary condition to receive a preferred customer status. This study examines the influence of three major social concepts (conflict, power and status) on the process of satisfying suppliers and becoming a preferred customer. Data is gathered amongst suppliers of a public organisation and analysed with PLS path modelling software. The results show that the use of coercive power has an indirect effect on the level of supplier satisfaction, which is mediated by conflict. Reward power does not have an influence on supplier satisfaction. Further, having a high status as a buyer increases the chance of receiving a preferred customer status. Finally, this study provides suggestions for buyers to better satisfy the suppliers and increase the chances of becoming a preferred customer. Also future research possibilities are discussed.
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/71564
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