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B2B Marketing - White paper


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This presentation simplifies the content of a white paper presented by Piyush Kumar regarding the Impact of Performance, Cost and Competitive Considerations on the relationship between Satisfaction and Repurchase Intent in Business Markets.

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B2B Marketing - White paper

  1. 1. THE REPURCHASE DECISION PROCESSThe Impact ofPerformance, Cost & Competitive Considerationson the Relationship BetweenSatisfaction and Repurchase Intentin Business MarketsA Whitepaper by -Piyush Kumar MBA-2012 | COHORT-7Vanderbilt University Asian Institute of Management
  2. 2. Presentation Flow Conclusion • Limitations Modeling • Future Research • Topics of ModelingHypothesis • Evaluation Criteria• Supplier’s Dilemma• Satisfaction • Data Collection • Empirical Findings
  3. 3. Hypothesis Performance criteria influences customer overall satisfaction Effective Customer retention Customer strategy experiences with competing supplier affect their repurchase intention
  4. 4. Supplier’s Dilemma Customer management Program ProfitabilityEven after having effective Customer management program stillCustomer tends to have multiple supplier for 2/3rd of their requirements
  5. 5. What is Satisfaction? Prior expectation Satisfaction level Performance level
  6. 6. Overall Satisfaction Model◦ Overall satisfaction is a customer’s judgment regarding a fulfillment from product/service/firm◦ Evaluation Process ◦ Use a set of Performance & Cost Criteria ◦ Aggregate multiple judgments to form global judgment◦ Process Model of Satisfaction ◦ Evaluation Criteria based on – ◦ Competitive Norms ◦ Expectations & Performance ◦ Equity & Desires
  7. 7. Repurchase Intent Model◦ Repurchase Decision Process in B2B is complex ◦ Performance | Cost | Competitive Considerations◦ Overall Satisfaction & Repurchase Intent are different ◦ Service is less important in Repurchase Decision◦ Market share has marginal correlation w/satisfaction ◦ Not evaluated in isolation; w.r.t. alternate supplier◦ Implications for Suppliers of B2B Customers ◦ Benchmark for evaluation varies across customer base
  8. 8. Repurchase Intent ModelSatisfaction Satisfaction Gain/Loss Gain/Loss Focal Alternate Supplier Repurchase Supplier Intent Cost CostGain/Loss Gain/Loss
  9. 9. Relevant Criteria for EvaluationPerformance Product Quality Quality of product offeringCriteria Assistance in developing solutions Customer Service Quality of Sales Team Leader Delivery ProcessesCost Criteria Acquisition Cost Maintenance Cost
  10. 10. Evaluation of Suppliers◦ Core product◦ Business Solution Development◦ Sales team performance◦ Delivery process◦ Total Cost of Ownership = Acquisition Cost + Maintenance Cost◦Increase in the satisfaction of these criteria will increase the chances of Repurchase
  11. 11. Data Collection & Estimation◦ Key representatives from major organizations◦ Overall satisfaction with the supplier firm◦ Based on people, products and services◦ Likelihood of buying services to meet future needs◦ Reduction of TCO is main criteria for all Buying Centers
  12. 12. Empirical finding of the research
  13. 13. Driving force forOverall SatisfactionProblem solver not just product offeringEnhance satisfaction by post purchase serviceby sale forceCost doesn’t have significant impactOffer complete package
  14. 14. Driving force forRepurchase IntentLevel of customer satisfaction may not result inrepurchase intent.Customer’s perception of the overall competitivenessof the supplierBoth overall and relative satisfactionQuality of product offering and ability to solvecustomer’s problemsService offering part has greater impact than productoffering part
  15. 15. Conclusion◦ Relation b/w Satisfaction & Repurchase Intent is non-linear and content-based approach shows that ◦ Effect of Cost & Competitive Considerations on Repurchase ◦ Weight of Performance Criteria varies in OSat & RepInt ◦ Repurchase Intent is a measure of future purchases ◦ Recent alternate suppliers impact Repurchase Decisions
  16. 16. Limitations & Future Research◦ Limitations◦ Focus was on the firm and not on product/service◦ Intent is not a perfect predictor of future purchase◦ Future Research◦ Bolster the Theory of Post-Purchase Behavior◦ Impact of multiple suppliers on Repurchase Decisions
  17. 17. Thank You!Deepak Damodaran Sahil ShahIndrani Basu Sandeep KumarMadhuranath R Surendra Kumar