University of Twente Student Theses


The mutual influence of the preferred customer status and inflation in a retail context

Otte, S.M.P. (2023) The mutual influence of the preferred customer status and inflation in a retail context.

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Abstract:A new view on buyer-supplier relationships developed. So called “reverse” marketing is used by buyers in order to attract the best suppliers. Buying firms try to have good supplier satisfaction for these suppliers to obtain a preferred customer status and get preferential treatment. Additionally, many firms are dealing with the consequences of inflation. A case study at buying firm X and three suppliers has been developed in order to investigate the relationship between the preferred customer status and inflation. Also antecedents and benefits of the preferred customer status have been researched. This was done using interviews. The findings support previous research on the antecedents and benefits of the preferred customer status. New retail specific benefits are discovered. These are: a higher amount of money invested in promotions, exclusiveness in the form of tailor made promotions or exclusive products, collaboration on strategy and more time being invested into the relationship. One new antecedent is found. This is strategy collaboration. The following propositions were supported by the case study: Firms that have a preferred customer status with their suppliers can make adjustments to contract more easily because they have a better relationship with their suppliers. The price increase can more easily be reversed for suppliers for which the buying firm has a preferred customer status. The way in which buying firms handle inflation can influence if they get a preferred customer status or not.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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