Abstract
There is a gap in literature as to how multidimensional satisfaction fits into a nomological network with continuity, coordination and cooperation. Furthermore, most studies focusing on these constructs are limited to a buyer perspective. The objective of this study is to fill this gap by testing a model whereby continuity, coordination and cooperation are regarded as mediators between economic and non-economic satisfaction specifically within business-sales representative relationships, thereby establishing a foundation to assess the structural properties between economic satisfaction and non-economic satisfaction within a business sales context. Managerial implications offered in the paper were discussed and the practical relevance and implementation thereof validated by experienced sales directors. This study contributes by revealing that continuity, coordination and cooperation to some extent mediates separately as well as cumulatively the relationship between economic satisfaction and non-economic satisfaction within a business sales context. Subsequently, it contributes by extending our understanding in relation to existing theory and previous studies of business relationships to a business sales perspective.
Highlights
Successful long-lasting relationships established and maintained between sales representatives and customers are critical for organizations’ success, growth, and survival (Mangus & Ruvio, 2019)
It presents that the factor loadings, implying that the items meet the thresholds (0.5 for variance explained; 0.7 or larger factor loadings) (Hair et al, 2006), except for three
These findings are in line with Payan et al (2019) who found that coordination relates to economic satisfaction due to its alignment of actions, while cooperation relates to non-economic satisfaction due to its alignment of interest
Summary
Successful long-lasting relationships established and maintained between sales representatives and customers are critical for organizations’ success, growth, and survival (Mangus & Ruvio, 2019). Central to establishing business relationships is customer satisfaction (Grewal & Sharma, 1991) due to the belief that it leads to a number of positive behaviors. The importance of distinguishing between economic and non-economic satisfaction lies therein that each has a distinct focus (Ulaga & Eggert, 2006), holds varying relationships with various antecedents and outcomes (Geyskens et al, 1999) and failure to differentiate between them will diminish organizations’ ability to successfully manage customer relationships (Geyskens & Steenkamp, 2000). Researchers have increasingly adopted both economic and non-economic satisfaction as separate constructs when studying business relationships (Glavee-Geo, 2019; Høgevold et al, 2019; Payan et al, 2019)
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