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Understanding Customers and Relationships in Software Technology SMEs

Author

Listed:
  • Sara Parry

    (Bangor University)

  • Rosalind Jones

    (Bangor University)

  • Jennifer Rowley

    (Manchester Metropolitan University)

  • Beata Kupiec-Teahan

    (Scottish Agricultural College)

Abstract

Purpose Drawing on B2B Relationship Marketing and management theory, this research seeks to better understand customer-perceived value in B2B contexts, specifically what customers expect from their relationships with suppliers. The study therefore aims to explore the customer’s perspective of the key attributes of relationships, in the software sector, and with specific reference to SMEs in this sector.Design/Method/Approach A two level analysis of customer perspectives on relationship attributes was conducted. First, semi-structured interviews were conducted with the customers of two case study firms. This process was used both to identify key attributes, and to generate insights into the nature and importance of those attributes. Using these attributes, a second study was conducted; a survey based on an online questionnaire generated data that was analysed using Adaptive Conjoint Analysis in order to identify the relative significance of the attributes. Findings A new Customer Relationship Attributes Model (CRAM) is presented which encapsulates the major attributes customers consider when entering into a relationship with their software supplier. The CRAM identifies five product-related attributes (price, functionality, bilingual capability, location, and software quality), and seven service related attributes (communication, understanding of the customer, trust, relationship, service, professionalism, and employee expertise). The most important of these attributes are: software quality, professionalism, understanding of the customer, and functionality. Originality/value Too much of the research and rhetoric on relationship marketing and management takes a provider side approach. This paper contributes to theory by offering a customer perspective on business relationships in a specific sector. Further, the CRAM can be used by software SMEs to inform the actions that they need to take in order to enhance their relationships with their customers in pursuit of improved business performance.

Suggested Citation

  • Sara Parry & Rosalind Jones & Jennifer Rowley & Beata Kupiec-Teahan, 2010. "Understanding Customers and Relationships in Software Technology SMEs," Working Papers 10017, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    • Handle: RePEc:bng:wpaper:10017
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    References listed on IDEAS

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