Vendor’s Competences And Retailer’s Merchandize Behaviour And Their Impact On Customer Value Satisfaction: A Study

Abstract

The paper presents research that examines the complex relationship between vendors’ (manufactures) competences, retailers merchandize behaviour and their impact on customer value satisfaction. Specifically, the effects of operational performance of vendors (order fulfilment service quality, brand attitude, product criticality, Salesforce recommendations and retail store size with the retailer purchase behaviour) and relational performance of retailers merchandize decision and their impact on  customer value satisfaction and loyalty in the unique context of consumer durable goods sector are examined. To examine the scenario, the authors develop a conceptual model based on the relationship between vendor competencies framework, retailer supply decision and their impact on customer relationship performance (customer satisfaction, customer loyalty) function as intermediate steps linking service orientation to retailer profitability. The model is tested with a matched sampling frame for the final 465 retailers and the results demonstrate an important linkage between the traditional domain of logistics and supply (vendors) side concepts, the traditional domain of retail marketing (retailers) and demand (customer value satisfaction) side concepts. It provides an understanding of the interaction between the two. The results show that relationship value mediates the effects of service quality, product nature, brand attitude, sales force nature on relationship outcomes of retailers and on customer value.