Supplier strategies to increase customer purchases over the duration of customer‐supplier relationships

Abstract

PurposeThe purpose of this research is to understand factors related to increased customer purchases from suppliers during different stages of the customer‐supplier relationship.Design/methodology/approachA survey of 372 professionals in the paper industry was conducted to investigate how customer performance outcomes, supplier quality and delivery performance, the presence of relational norms and customer perspectives of environmental uncertainty vary in their influence on increasing customer purchases over time.FindingsThe results indicate the variables influencing increased customer purchases vary over the duration of the customer‐supplier relationship. It is also shown how the variables influencing increased customer purchases from suppliers are different from the variables leading to increased customer commitment to suppliers over time.Research limitations/implicationsData were collected from the customer perspective only and involved the exchange of one type of product. Similar studies need to be conducted in other industries involving other types of product exchanges that capture both customer and supplier perspectives to verify these findings.Practical implicationsSupplier sales and marketing managers need to understand the factors related to increased customer purchases and how they change over time to create appropriate sales and marketing strategies for different stages of their customer relationships.Originality/valueOne of the most important sales and marketing objectives is to increase customer purchases; however, it has received limited attention in prior research. This paper adds value by focusing on both the variables related to increased customer purchases and how these factors change in their influence over the duration of the customer‐supplier relationship.