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ENHANCING KNOWLEDGE ON DEALER-SUPPLIER RELATIONSHIPS: AN ANALYSIS OF DEALER’S ECONOMIC AND SOCIAL RELATIONSHIP SATISFACTION

Year 2012, Volume: 7 Issue: 2, 163 - 173, 01.12.2012

Abstract

In today’s environment, businesses have become more complex and uncertain where sustainable
competitive advantages rely on the development and maintenance of relationships between buyers and supplier.
Understanding the relationship in depth contributes to organizational knowledge as it facilitates the delivery of
the products to the intended customers. Thus, researchers’ and marketers’ interests have become more focused
on relationship building and development, and many marketing scholars have recognized the need for
examination of the relationship aspects of buyer-supplier exchange and the components that influence
relationship development and satisfaction. Despite the assumption that relationship satisfaction contributes to
buyer-supplier relationship, previous researches have concentrated more on overall satisfaction of relationship
and less research focus has been given to investigating the multi dimensionality of relationship satisfaction. The
aim of this study is to examine the level of relationship satisfaction in supplier-dealer relationships as well as the
relationships between dimensions of relationship satisfaction. Using a survey method, this study explores the
level of relationship satisfaction among 126 car dealers in Malaysia as well as the influence of economic
satisfaction on social satisfaction. Results show that the dealers are highly satisfied with the suppliers and both
dimensions of relationship satisfaction are correlated to each other. The results provide support for the
relationship between economic and social satisfaction. Theoretical and managerial implications are extracted
from these findings with a view towards knowledge sharing.

References

  • Abdul-Muhmin, A. G. (2002). Effects of suppliers' marketing program variables on industrial buyers' relationship satisfaction and commitment. Journal of Business & Industrial Marketing, 17, 7, 637-649.
  • Abdul-Muhmin, A. G. (2005). Instrumental and interpersonal determinants of relationship satisfaction and commitment in industrial markets. Journal of Business Research, 58, 619-628.
  • Andaleeb, S. S. (1996). An experimental investigation of satisfaction and commitment in marketing channels: The role of trust and dependence. Journal of Retailing, 72(1), 77-93.
  • Anderson, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42-58.
  • Anderson, J. C., Hakansson, H., & Johanson, J. (1994). Dyadic business relationships within a business network context. Journal of Marketing, 58(October), 1-15.
  • Auh, S. & Johnson, M.D. (2005). Compatibility effects in evaluations of satisfaction and loyalty, Journal of Economic Psychology, 26, 1 35-57.
  • Bolton, R. N., & Drew, J. H. (1991). A multistage model of consumers' assessment of service quality and value. Journal of Consumer Research, 17, 375-384.
  • Caceras, R. C. & Paparoidamis, N.G. (2007). Service quality, relationship satisfaction, trust, commitment and business-to-business loyalty. European Journal of Marketing, 41, 7/8, 836-867.
  • Corsten, D., & Kumar, N. (2005). Do suppliers benefit from collaborative relationships with large retailers? An Empirical investigation of efficient consumer response action. Journal of Marketing, 69, 80-89.
  • Dwyer, F. R. (1980). Channel-member satisfaction: Laboratory insights. Journal of Retailing, 56(2), 45-65.
  • Dwyer, F. R., Schur, P. H., & Oh, S. (1987). Developing buyer-seller relationships. Journal of Marketing, 51(April), 11-28.
  • Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58(2), 1-19.
  • Gassenheimer, J. B., & Ramsey, R. (1994). The impact of dependence on dealer satisfaction: A comparison of reseller-supplier relationships. Journal of Retailing, 70(3), 253-266.
  • Geyskens, I., Steenkamp, J. B., & Kumar, N. (1999). A meta-analysis of satisfaction in marketing channel relationships. Journal of Marketing Research, 36(2), 223-238.
  • Geyskens, I., & Steenkamp, J. B. (2000). Economic and social satisfaction: Measurement and relevance to Ping,
  • R. A., Jr. (2003). Antecedents of satisfaction in a marketing channel. Journal of Retailing, 79, 237-248.
  • Grandhi, B. (1978). Better use of the industrial marketing concept. Industrial Marketing Management, 7(1), 71- 77.
  • Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th Ed ed.). New Jersey: Prentice Hall.
  • Howard, J. A., & Sheth, J. N. (1969). A theory of buyer behavior. New York, NY: John Wiley & Sons.
  • Hunt, S. D., & Nevin, J. R. (1974). Power in a channel of distribution: Sources and consequences. Journal of Marketing Research, 11(May), 186-193.
  • Jonsson, P., & Zineldin, M. (2003). Achieving high satisfaction in supplier-dealer working relationships. Supply Chain Management, 8(3), 224-240.
  • Lee, D. Y. (2001). Power, conflict, and satisfaction in IJV supplier-Chinese distributor channels. Journal of Business Research, 52, 149-160.
  • Lehman, D. R., & O'Shaughnessy, J. (1974). Difference in attribute importance for different industrial products. Journal of Marketing, 38, 36-42.
  • Leonidou, L. C., Palihawadana, D., & Theodosiou, M. (2006). An integrated model of the behavioural dimensions of industrial buyer-seller relationships. European Journal of Marketing, 40(1/2), 145-173.
  • Lewis, M. C., & Lambert, D. M. (1991). A model of channel member performance, dependence and satisfaction. Journal of Retailing, 67(2), 205-225.
  • Madaleno, R., Wilson, H. & Palmer, R. (2007). Determinants of Customer Satisfaction in a Multi-Channel B2B Environment. Total Quality Management & Business Excellence, 18,8, 20-32
  • Maxwell, S., Nye, P., Maxwell, N. (1999). Less pain, same gain: The effects of priming fairness in price negotiations. Journal of Psychology and Marketing, 16(7), 545-562.
  • Mohr, J. J., Fisher, R. J., & Nevin, J. R. (1996). Collaborative communication in interfirm relationships: Moderating effects of integration and control. Journal of Marketing, 60(3), 103-115.
  • Morgan, H., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38.
  • Nor, N. G., & Sumormo, S. (2005). Transactional cost and organizational choice in the Malaysian automobile industry. International Journal of Business and Soceity, 6(2), 97-112.
  • Oehme, W. (1992). Handelsmarketing (2nd ed.). Munchen: Auflage.
  • Payan, J. M., & McFarland, R. G. (2005). The effects of influence strategies and dependence on satisfaction: Does trust mediate these relationships? Journal of Marketing Channels, 13(1), 3-20.
  • Perumal, S. (2010). Antecedents and consequences of relationship satisfaction among national car dealers in Malaysia. Unpublished thesis, University Utara Malaysia.
  • Ping, R. A., Jr. (2003). Antecedents of satisfaction in a marketing channel. Journal of Retailing, 79, 237-248.
  • Ramaseshan, B., Yip, L. S. C., & Pae, J. H. (2006). Power, satisfaction, and relationship commitment in Chinese store-tenant relationship and their impact on performance. Journal of Retailing, 82(1), 63-70.
  • Rodriguez, I.R.D.B., Aguldo, J.C. & Gutierrez, H.S.M. (2006). Determinants of economic and social satisfaction in manufacturer-distributor relationships. Industrial Marketing Management, 35, 666-675.
  • Roslin, R. M., & Melewar, T. C. (2001). Supplier-retailer relationships in grocery distribution in Malaysia: Indications of dominance, conflict, and cooperation. Journal of Asia-Pacific Business, 3(2), 5-36.
  • Schellhase, R., Hardock, P., & Ohlwein, M. (2000). Customer satisfaction in business-to-business marketing: The case of retail organizations and their suppliers. Journal of Business & Industrial Marketing, 15(2/3), 106- 121.
  • Selnes, F. (1998). Antecedents and consequences of trust and satisfaction in buyer-seller relationships. European Journal of Marketing, 32(3/4), 305-322.
  • Sheth, J. N., & Sharma, A. (1997). Supplier relationships: Emerging issues and challenges. Industrial Marketing Management, 26, 91-100.
  • Thibaut, J. W., & Kelley, H. H. (1959). The social psychology of groups. New York: John Wiley and Sons.
  • Yilmaz, C., Sezen, B., & Kabadayi, E. T. (2004). Supplier fairness as a mediating factor in the supplier performance-reseller satisfaction relationship. Journal of Business Research, 57, 854-863.

ENHANCING KNOWLEDGE ON DEALER-SUPPLIER RELATIONSHIPS: AN ANALYSIS OF DEALER’S ECONOMIC AND SOCIAL RELATIONSHIP SATISFACTION

Year 2012, Volume: 7 Issue: 2, 163 - 173, 01.12.2012

Abstract

In today’s environment, businesses have become more complex and uncertain where sustainable
competitive advantages rely on the development and maintenance of relationships between buyers and supplier.
Understanding the relationship in depth contributes to organizational knowledge as it facilitates the delivery of
the products to the intended customers. Thus, researchers’ and marketers’ interests have become more focused
on relationship building and development, and many marketing scholars have recognized the need for
examination of the relationship aspects of buyer-supplier exchange and the components that influence
relationship development and satisfaction. Despite the assumption that relationship satisfaction contributes to
buyer-supplier relationship, previous researches have concentrated more on overall satisfaction of relationship
and less research focus has been given to investigating the multi dimensionality of relationship satisfaction. The
aim of this study is to examine the level of relationship satisfaction in supplier-dealer relationships as well as the
relationships between dimensions of relationship satisfaction. Using a survey method, this study explores the
level of relationship satisfaction among 126 car dealers in Malaysia as well as the influence of economic
satisfaction on social satisfaction. Results show that the dealers are highly satisfied with the suppliers and both
dimensions of relationship satisfaction are correlated to each other. The results provide support for the
relationship between economic and social satisfaction. Theoretical and managerial implications are extracted
from these findings with a view towards knowledge sharing.

References

  • Abdul-Muhmin, A. G. (2002). Effects of suppliers' marketing program variables on industrial buyers' relationship satisfaction and commitment. Journal of Business & Industrial Marketing, 17, 7, 637-649.
  • Abdul-Muhmin, A. G. (2005). Instrumental and interpersonal determinants of relationship satisfaction and commitment in industrial markets. Journal of Business Research, 58, 619-628.
  • Andaleeb, S. S. (1996). An experimental investigation of satisfaction and commitment in marketing channels: The role of trust and dependence. Journal of Retailing, 72(1), 77-93.
  • Anderson, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42-58.
  • Anderson, J. C., Hakansson, H., & Johanson, J. (1994). Dyadic business relationships within a business network context. Journal of Marketing, 58(October), 1-15.
  • Auh, S. & Johnson, M.D. (2005). Compatibility effects in evaluations of satisfaction and loyalty, Journal of Economic Psychology, 26, 1 35-57.
  • Bolton, R. N., & Drew, J. H. (1991). A multistage model of consumers' assessment of service quality and value. Journal of Consumer Research, 17, 375-384.
  • Caceras, R. C. & Paparoidamis, N.G. (2007). Service quality, relationship satisfaction, trust, commitment and business-to-business loyalty. European Journal of Marketing, 41, 7/8, 836-867.
  • Corsten, D., & Kumar, N. (2005). Do suppliers benefit from collaborative relationships with large retailers? An Empirical investigation of efficient consumer response action. Journal of Marketing, 69, 80-89.
  • Dwyer, F. R. (1980). Channel-member satisfaction: Laboratory insights. Journal of Retailing, 56(2), 45-65.
  • Dwyer, F. R., Schur, P. H., & Oh, S. (1987). Developing buyer-seller relationships. Journal of Marketing, 51(April), 11-28.
  • Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58(2), 1-19.
  • Gassenheimer, J. B., & Ramsey, R. (1994). The impact of dependence on dealer satisfaction: A comparison of reseller-supplier relationships. Journal of Retailing, 70(3), 253-266.
  • Geyskens, I., Steenkamp, J. B., & Kumar, N. (1999). A meta-analysis of satisfaction in marketing channel relationships. Journal of Marketing Research, 36(2), 223-238.
  • Geyskens, I., & Steenkamp, J. B. (2000). Economic and social satisfaction: Measurement and relevance to Ping,
  • R. A., Jr. (2003). Antecedents of satisfaction in a marketing channel. Journal of Retailing, 79, 237-248.
  • Grandhi, B. (1978). Better use of the industrial marketing concept. Industrial Marketing Management, 7(1), 71- 77.
  • Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th Ed ed.). New Jersey: Prentice Hall.
  • Howard, J. A., & Sheth, J. N. (1969). A theory of buyer behavior. New York, NY: John Wiley & Sons.
  • Hunt, S. D., & Nevin, J. R. (1974). Power in a channel of distribution: Sources and consequences. Journal of Marketing Research, 11(May), 186-193.
  • Jonsson, P., & Zineldin, M. (2003). Achieving high satisfaction in supplier-dealer working relationships. Supply Chain Management, 8(3), 224-240.
  • Lee, D. Y. (2001). Power, conflict, and satisfaction in IJV supplier-Chinese distributor channels. Journal of Business Research, 52, 149-160.
  • Lehman, D. R., & O'Shaughnessy, J. (1974). Difference in attribute importance for different industrial products. Journal of Marketing, 38, 36-42.
  • Leonidou, L. C., Palihawadana, D., & Theodosiou, M. (2006). An integrated model of the behavioural dimensions of industrial buyer-seller relationships. European Journal of Marketing, 40(1/2), 145-173.
  • Lewis, M. C., & Lambert, D. M. (1991). A model of channel member performance, dependence and satisfaction. Journal of Retailing, 67(2), 205-225.
  • Madaleno, R., Wilson, H. & Palmer, R. (2007). Determinants of Customer Satisfaction in a Multi-Channel B2B Environment. Total Quality Management & Business Excellence, 18,8, 20-32
  • Maxwell, S., Nye, P., Maxwell, N. (1999). Less pain, same gain: The effects of priming fairness in price negotiations. Journal of Psychology and Marketing, 16(7), 545-562.
  • Mohr, J. J., Fisher, R. J., & Nevin, J. R. (1996). Collaborative communication in interfirm relationships: Moderating effects of integration and control. Journal of Marketing, 60(3), 103-115.
  • Morgan, H., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38.
  • Nor, N. G., & Sumormo, S. (2005). Transactional cost and organizational choice in the Malaysian automobile industry. International Journal of Business and Soceity, 6(2), 97-112.
  • Oehme, W. (1992). Handelsmarketing (2nd ed.). Munchen: Auflage.
  • Payan, J. M., & McFarland, R. G. (2005). The effects of influence strategies and dependence on satisfaction: Does trust mediate these relationships? Journal of Marketing Channels, 13(1), 3-20.
  • Perumal, S. (2010). Antecedents and consequences of relationship satisfaction among national car dealers in Malaysia. Unpublished thesis, University Utara Malaysia.
  • Ping, R. A., Jr. (2003). Antecedents of satisfaction in a marketing channel. Journal of Retailing, 79, 237-248.
  • Ramaseshan, B., Yip, L. S. C., & Pae, J. H. (2006). Power, satisfaction, and relationship commitment in Chinese store-tenant relationship and their impact on performance. Journal of Retailing, 82(1), 63-70.
  • Rodriguez, I.R.D.B., Aguldo, J.C. & Gutierrez, H.S.M. (2006). Determinants of economic and social satisfaction in manufacturer-distributor relationships. Industrial Marketing Management, 35, 666-675.
  • Roslin, R. M., & Melewar, T. C. (2001). Supplier-retailer relationships in grocery distribution in Malaysia: Indications of dominance, conflict, and cooperation. Journal of Asia-Pacific Business, 3(2), 5-36.
  • Schellhase, R., Hardock, P., & Ohlwein, M. (2000). Customer satisfaction in business-to-business marketing: The case of retail organizations and their suppliers. Journal of Business & Industrial Marketing, 15(2/3), 106- 121.
  • Selnes, F. (1998). Antecedents and consequences of trust and satisfaction in buyer-seller relationships. European Journal of Marketing, 32(3/4), 305-322.
  • Sheth, J. N., & Sharma, A. (1997). Supplier relationships: Emerging issues and challenges. Industrial Marketing Management, 26, 91-100.
  • Thibaut, J. W., & Kelley, H. H. (1959). The social psychology of groups. New York: John Wiley and Sons.
  • Yilmaz, C., Sezen, B., & Kabadayi, E. T. (2004). Supplier fairness as a mediating factor in the supplier performance-reseller satisfaction relationship. Journal of Business Research, 57, 854-863.
There are 42 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Nor Azila Mohd Noor This is me

Selvan Perumal This is me

Zolkafli Hussin This is me

Publication Date December 1, 2012
Published in Issue Year 2012 Volume: 7 Issue: 2

Cite

APA Noor, N. A. M., Perumal, S., & Hussin, Z. (2012). ENHANCING KNOWLEDGE ON DEALER-SUPPLIER RELATIONSHIPS: AN ANALYSIS OF DEALER’S ECONOMIC AND SOCIAL RELATIONSHIP SATISFACTION. Bilgi Ekonomisi Ve Yönetimi Dergisi, 7(2), 163-173.