Author : Michael C. Thibideau
Publisher :
ISBN 13 :
Total Pages : 320 pages
Book Rating : 4.:/5 (11 download)
Book Synopsis The Impacts of Customer Power on Preferred Customer Status: Winning Supplier Resources in the North American Automotive Parts Industry by : Michael C. Thibideau
Download or read book The Impacts of Customer Power on Preferred Customer Status: Winning Supplier Resources in the North American Automotive Parts Industry written by Michael C. Thibideau and published by . This book was released on 2019 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms in the North American automotive industry that fail to earn access to supplier resources more effectively than their rivals are at a significant competitive disadvantage. The purpose of this study was to determine if customer coercive and non-coercive power impact preferential access to supplier resources (herein, preferred customer status), and if supplier trust of the customer moderates the relationship between these variables. Quantitative survey data from 228 tier-two suppliers in the North American automotive industry who were most knowledgeable about the exchange relationship with their customers (i.e., tier-one firms) found that: H1) coercive power from the customer in the form of threats and punishment has a negative impact on preferential access to the supplier’s most qualified employees; H2) non-coercive power from the customer has a positive impact on preferred customer status; H3) trust does not moderate the impact of coercive power on preferred customer status; and H4) trust does moderate the impact of non-coercive power on preferred customer status. Thematic analysis of one open-ended question suggests suppliers consider both the strategic nature of the customer-supplier relationship and the anticipation of profitable revenue growth when awarding customers preferred status. Analysis of the effects of supplier type found early supplier involvement in customer new product development may foster strategic supplier-customer relationships and activate supplier reciprocal investment of resources in the relationship. Three practical recommendations are derived from this study: 1) preferred customer status can be earned through non-coercive power (e.g., incentives and respect); 2) customer strategies to become a preferred customer should include initiatives to increase supplier perception of the customer’s business skills and promotion of the customer’s success in the market; and 3) customers who seek preferential access to supplier resources should have active strategies for trust-building.
