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Preferred customer status, its antecedents and the influence of psychological contract fulfillment and breach - a dual case study

Graaff, M.R. de (2021) Preferred customer status, its antecedents and the influence of psychological contract fulfillment and breach - a dual case study.

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Abstract:Over the last years, a shift has been noticeable in the relationship between buyers and suppliers. Instead of fighting over customers, companies are increasingly trying to become a preferred customer of strategic suppliers. This study aims to empirically examine and enhance the existing literature on the antecedents of preferred customer status and its benefits. Furthermore, psychological contracts govern buyer-supplier relationships, which can lead to reciprocal expectations. Meeting or breaching these expectations potentially affects supplier satisfaction. This research therefore also explores the effects of psychological contracts on supplier satisfaction and preferred customer status. This study is set up as a dual case study. The findings confirm most antecedents and benefits in the existing literature and identify business fit and similar culture as new antecedents of supplier satisfaction and supplier support, innovation potential, similar culture and business fit as new antecedents of preferred customer status. Furthermore, the results indicate that fulfillment of psychological contracts is positively correlated with supplier satisfaction and preferred customer status, where the type of psychological contract is a moderating variable. Psychological contract breach appears to have no effect on supplier satisfaction in collaborative relationships and a positive effect on preferred customership when a relational psychological contract is breached.
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:https://purl.utwente.nl/essays/86761
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