Validating the Sequential Logic of Quality Constructs in Seller-customer Business Relationships – Antecedents, Mediator and Outcomes

Abstract

ABSTRACT Purpose The main purpose of the study is to assess proposed relationships in a model across different settings, where satisfaction is a mediator between quality constructs in a seller-customer relational setting in B2B markets. The positioning of satisfaction as a mediator is between trust and commitment as antecedents of satisfaction, and cooperation, continuity, and coordination as postcedents of satisfaction in seller-customer relationships. The study was quantitative in nature, supported by an exploratory research approach. Data was collected based on a population of companies across Norwegian industries, as reflected in the Norwegian database Sales Navigator on LinkedIn. To enable research on seller-customer business relationships, key informants who adhered to specific criteria (e.g., that they were sales or marketing managers/directors or key account managers) were selected to participate in the study. A total of 841 potential key informants were identified and contacted telephonically to verify whether they qualified to participate in the survey and, if not, to identify an appropriate person who fit the criteria at the same firm. A total of 523 informants adhered to the stipulated criteria to participate in the study, with a total of 213 informants who completed the questionnaire satisfactorily. This resulted in their responses to be used for data analysis purposes, representing a valid response rate of 40.7%. Respondents were requested to name one key business customer with whom they engaged in the last year, and to be mindful of this respondent when answering the questionnaire. To secure privacy, respondents did not have to identify the customer. Furthermore, the respondents were asked to answer the questions to the best of their ability to ensure quality responses to each item in the questionnaire. Design/methodology/approach The questionnaire began with a competency check to ensure respondents were suitable to participate in the study. The respondents were asked, “Please consider how knowledgeable and experienced you are concerning your business and your business dealings with this customer.” They then had to answer the following two statements: a) “I have a lot of knowledge about this customer”; and b) “I have a lot of experiences with this customer,” which were measured using a five-point Likert-type scale, ranging between (1) strongly agree and (5) strongly disagree. Almost all respondents (99.5%) indicated that they had extensive knowledge about the customer, while 94.5% indicated that they had wide-ranging experiences with the customer. The application of a five-point Likert-type scale was secured to determine the degree to which respondents agreed or disagreed with the items included in the questionnaire relating to trust, commitment, satisfaction, coordination, continuity and cooperation in seller–customer relationships. The SPSS/Amos 24.0 software was used to conduct the multivariate analysis. Firstly, a confirmatory factor analysis was conducted, followed by structural equation modeling. Confirmatory factor analysis was applied to assess the measurement properties of each construct, while structural equation modeling was used to evaluate the proposed hypotheses in the precursor and outcome research model. Findings The tested research model adheres to the cutoff points for satisfactory convergent, discriminant, and nomological validity, as well as to the minimum requirements for construct reliability. Furthermore, it was determined that trust and commitment have a positive and significant influence on satisfaction in a seller-customer context, while satisfaction positively and significantly influences coordination, continuation, and cooperation in seller-customer relationships in a B2B setting. Research implications The tested model validates the hypothesized relationships between trust, commitment, satisfaction, coordination, continuity, and cooperation from a seller’s perspective in a B2B setting. Moreover, the model confirms the sequential logic of quality constructs in seller-customer business relationships. Furthermore, the findings reported on the seller-customer research model raise the question for further research on the seller’s perspective in relation to the sequential logic of quality constructs in business relationships. Extensive research has been undertaken based on the buyer’s perspective, while the seller’s perspective requires additional research. The findings indicate consistency between the measurement and structural properties based on sellers’ and buyers’ perspectives in business relationships. Evidently, further research is required to verify the validity and reliability beyond the studied Norwegian seller-customer business relationships. A crucial research implication is that existing items to measure trust, commitment, satisfaction, cooperation, coordination, and continuity in buyer-supplier relationships (i.e., a buyer’s perspective) appear to be valid and reliable – after the minimal replacement of the word “supplier” with the word “customer” – to measure the same construct in seller-customer business relationships (i.e., a seller’s perspective). This offers further opportunities to test other constructs and related items used that are based on a buyer’s perspective to verify their validity and reliability in seller perspective contexts. Finally, the study provides opportunities to assess the mutuality of satisfaction, trust, commitment, cooperation, coordination, and continuity in buyer-supplier and seller-customer business relationships. Managerial implications The findings assist sellers in a B2B setting to better understand the quality factors that are vital for business-to-business customers when building long-term relationships with industrial sellers. In addition, these quality factors are perceived as important by sellers across industries in Norway. Therefore, the study established that it is important to make the seller aware of the positive consequences of trust (e.g., through information and education). Secondly, when the seller understands the positive consequences of trust, the seller can use them as an argument in discussions with a customer focusing on the benefits (e.g., cooperation, coordination, and continuity) of keeping a satisfied and committed business relationship, and so trust is maintained between the seller and the buyer. It was furthermore established that mutual trust creates a relationship rewarding both parties (i.e., a win-win situation). Conclusively, it is argued that trust is the basis of positive consequences (e.g., commitment and satisfaction) that stimulates the seller’s self-confidence, and most likely leads to improved sales performance through cooperation, commitment, and continuity of the business relationship. Originality/value The majority of studies measuring quality constructs in B2B relationships are positioned from the buyer’s perspective in a B2B setting. This study established a foundation to assess the relationship quality of a firm’s inbound and outbound business relationships from a seller’s perspective in a B2B context. Furthermore, the study provides an understanding of the seller’s perspective toward the quality constructs required for long-term relationship building. Since the majority of B2B studies are conducted from a buyer’s perspective, a seller’s perspective is required increasingly to better manage the long-term relationship building process in B2B markets.