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Managing customer share in key supplier relationships

Author

Listed:
  • Wolfgang Ulaga

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • A. Eggert

    (University of Paderborn)

Abstract

Supply base consolidation is an important issue in many business markets. Against this background, the allocation of purchasing budgets across vendors becomes an area of vital interest to suppliers. In the present research, we argue that customer share is a key decision variable in business marketing settings and investigate how a supplier can proactively manage the share of its customer's business. We report the results of a cross-sectional study among purchasing managers in U.S. manufacturing industries. Our findings confirm the role of customer value as an antecedent to customer share in business relationships. The study further shows that customer share influences the stability of key supplier relationships. Rather than displaying a direct impact, our results suggest that trust mediates and dependence moderates the link between customer share and search for alternative suppliers. Based on these findings, we propose a framework for managing customer share in key supplier relationships. Four approaches of how industrial vendors can proactively manage customer share are discussed.

Suggested Citation

  • Wolfgang Ulaga & A. Eggert, 2010. "Managing customer share in key supplier relationships," Post-Print hal-00610118, HAL.
    • Handle: RePEc:hal:journl:hal-00610118
    DOI: 10.1016/j.indmarman.2010.03.003
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    Citations

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    Cited by:

    1. He, Jiaxun & Zhang, Shuang, 2022. "How digitalized interactive platforms create new value for customers by integrating B2B and B2C models? An empirical study in China," Journal of Business Research, Elsevier, vol. 142(C), pages 694-706.
    2. Ferguson, Jodie L. & Brown, Brian P. & Johnston, Wesley J., 2017. "Partitioned pricing, price fairness perceptions, and the moderating effects of brand relationships in SME business markets," Journal of Business Research, Elsevier, vol. 72(C), pages 80-92.
    3. Chen Qian & Stefan Seuring & Ralf Wagner, 2021. "Reviewing interfirm relationship quality from a supply chain management perspective," Management Review Quarterly, Springer, vol. 71(3), pages 625-650, July.
    4. Shaikh, Aijaz A. & Karjaluoto, Heikki & Häkkinen, Juho, 2018. "Understanding moderating effects in increasing share-of-wallet and word-of-mouth: A case study of Lidl grocery retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 45-53.
    5. Richard Chinomona, 2015. "The Influence of Supplier Involvement on Communication, Relationship Longevity and Business Performance in Small, Medium and Micro Enterprises in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 7(3), pages 63-75.
    6. Zhang, Jiping & Mo, Haimiao & Hu, Zhijian & Zhang, Tianjiao, 2024. "The effect of stability and concentration of upstream and downstream relationships of focal firms on two-level trade credit," International Journal of Production Economics, Elsevier, vol. 270(C).
    7. Soukaina Zaoui & Safae Ait Hamou-ou-Brahim & Haiwei Zhou & Amina Omrane & Dechun Huang, 2021. "Consumer Purchasing Behaviour Towards Strategic Innovation Management Practices in Morocco During COVID-19 Health Crisis," FIIB Business Review, , vol. 10(2), pages 158-171, June.

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