Primary Customers Research Articles

Qualitative insights into buyer–supplier relationship attributes in the U.S. biofuels industry

The United States biofuels industry has experienced significant growth since its inception in the early 1990s due to concerns regarding climate change, energy security, and oil price volatility. Corn (maize) ethanol has served as an alternative to petroleum-based gasoline over the past few decades and currently accounts for nearly 90% of total U.S. renewable biofuels. In recent years, research interests have transitioned to biofuels recovered from lignocellulosic biomass due, in part, to the food-fuel controversy and the “ethanol blend” wall issue. However, the sustainable development of the U.S. lignocellulosic biofuels industry faces a variety of challenges, including feedstock costs and availability, high production and capital costs, and policy and market fluctuations. Literature suggests that buyer–supplier relationship management has the potential to solidify the supply chain and bring stability to commercialization plans. This study conducted semi-structured interviews with three lignocellulosic biofuel producers to explore relationships with their ethanol biofuel customers. Results show that refiners and blenders of gasoline were the primary customers of corn ethanol with fuel marketing companies as secondary intermediaries. Meanwhile, communication, trust, commitment, and power between participating parties were identified as important relationship attributes. To strengthen biofuel buyer–supplier relationships, this study identified manufacturing of consistent and regulated products and communication regarding logistics and environmental benefits of biofuels as key relationship management activities. This research provides business-to-business marketers of biofuels with a better understanding of relationship management and offers insights into the biofuel refinery-to-market value stream for researchers, practitioners, and policymakers.

State dependent arrival in bulk retrial queueing system with immediate Bernoulli feedback, multiple vacations and threshold

The objective of this paper is to analyse state dependent arrival in bulk retrial queueing system with immediate Bernoulli feedback, multiple vacations, threshold and constant retrial policy. Primary customers are arriving into the system in bulk with different arrival rates λa and λb. If arriving customers find the server is busy then the entire batch will join to orbit. Customer from orbit request service one by one with constant retrial rate γ. On the other hand if an arrival of customers finds the server is idle then customers will be served in batches according to general bulk service rule. After service completion, customers may request service again with probability δ as feedback or leave from the system with probability 1 − δ. In the service completion epoch, if the orbit size is zero then the server leaves for multiple vacations. The server continues the vacation until the orbit size reaches the value ‘N’ (N > b). At the vacation completion, if the orbit size is ‘N’ then the server becomes ready to provide service for customers from the main pool or from the orbit. For the designed queueing model, probability generating function of the queue size at an arbitrary time will be obtained by using supplementary variable technique. Various performance measures will be derived with suitable numerical illustrations.

Secondary but significant: secondary customers’ existence, vulnerability and needs in care services

PurposeThe purpose of this paper is to increase understanding of the status, vulnerability and needs of the health-care and nursing service customers’ (hereafter, care service customers’) loved ones.Design/methodology/approachThe position and vulnerabilities of secondary customers of care services are studied and examples provided by reviewing empirical research reported in the care service literature. A conceptual discussion is developed on the “customer” concept in an extended sense, beyond the focal customers. The “primary customer” and “secondary customer” concepts are employed to supplement the extant discussion on customer units and ecosystems.FindingsSecondary customers are exposed to secondary vulnerability and their well-being is affected by the services provided primarily to their loved ones. The most recurring needs of secondary customers concern psychosocial support, communication and information and cultural sensitivity.Practical implicationsNew perspectives on understanding the “customer” concept in an extended sense. This assists in supporting the customers’ dynamic activities and processes within the customer ecosystems. To address care service customers’ loved ones’ vulnerabilities and needs and to support their well-being, they should also be recognised as customers – “secondary customers” – with patients being the “primary customers”.Social implicationsThe results are especially relevant when considering services’ influences on vulnerable customers’ ecosystems and on individuals within them. It is important to recognise that beyond a vulnerable customer, several secondary customers may be exposed to secondary vulnerability, needing support.Originality/valueThe paper is apparently the first to connect the constructs “primary” and “secondary customer” and customer vulnerability to the customer ecosystem discussion. Also, essential future research questions are provided.

“Doing good” while serving customers

PurposeSocial entrepreneurship represents an unconventional, but increasingly prevalent, activity in developed and emerging economies. Social entrepreneurs devise novel business models that blend business and social missions with the aim of (co-)producing value with two primary stakeholder groups, beneficiaries and customers. Although interactions between social entrepreneurs and their beneficiaries are well-studied, the relationship between social ventures and consumers has received almost no extended attention.Design/methodology/approachUsing a qualitative, partially-inductive approach based on interviews with 40 social entrepreneurs, a study of how social entrepreneurs market their ventures to consumers was conducted.FindingsFindings reveal the ways in which marketing is relevant for social entrepreneurs, the unique challenges and opportunities entrepreneurs face in their interactions with customers, and the tactics entrepreneurs use to understand and educate their consumers.Originality/valueThe study’s findings contribute to work on social entrepreneurship and the entrepreneurship and marketing interface and have practical implications for social entrepreneurs.

A Dynamic Process of Building Global Supply Chain Competence by New Ventures: The Case of Uniqlo

In today's volatile global marketplace, firms should pursue flexible asset distribution and high-quality, low-cost manufacturing operations simultaneously. Previous studies have examined the relationships between supplier management–related variables and market performance with cross-sectional data; however, little guidance is available for newly internationalizing ventures aiming to build a global supply chain network from scratch. To shed light on this dynamic process, we examine Uniqlo's successful supply chain development in China, using longitudinal contextual data. Our findings show that Uniqlo went through discrete dynamic stages in its supply chain development efforts. First, Uniqlo, initially a small firm, developed relational governance with its suppliers by exercising dynamic economic power concentration over time. Second, it began to provide technical support to help its suppliers build competence with the aim of increasing their cooperation. Third, Uniqlo enforced compulsory nonexclusivity arrangements with suppliers to achieve supplier flexibility by not just having Uniqlo as primary customer. This provides relational flexibility through both relational governance and partner flexibility for the principal firm in the global supply chain development.

Pengaruh Kompetensi Pedagogik dan Manajemen Pembelajaran Terhadap Penjaminan Mutu Pada Universitas Sang Bumi Ruwa Jurai Lampung

Quality assurance of education is a concept in education quality management. In the application of this concept any school or educational institution is directed to ensure that the educational services provided meet or exceed the expectations of its customers, both internal and external customers. Internal customers are teachers and school employees, while the primary external customers are learners. The results of this study indicate that pedagogic competence at the University of Bumi Bumi Ruwa Jurai Lampung significant influence on quality assurance that is equal to 59.80%. This is influenced by the purpose of teaching and in making a good, fast, and timely teaching program plan, a high quality assurance is a driver of quality assurance.

Is There An Industry Effect in Executive Compensation? Evidence from Aerospace/Defense and Leisure/Hospitality Industry

The objective of this study is to compare the executive compensation of two industries that are diametrically opposites in terms of dependence on government: The Aerospace/Defense industry versus Leisure/Hospitality industry. The financial crisis brought the issue of the executive compensation to the attention of government. Congress has often tried to control executive compensation through mandated public disclosures of private contracts, restrictive tax policy, and direct interference with corporate governance. Recent studies show a reduction in donations to nonprofits subsequent to disclosure of high executive compensation. In the same light, since governments are the primary customers of defense industry, we suspect that the issue of high levels of executive compensation will factor into contract negotiations. The study finds a negative relationship, albeit weak, between the Aerospace/Defense industry variable and executive compensation as compared to the Leisure/Hospitality industry.

Determining the Skills Gap for New Hires in Management

This study is an exploratory attempt to evaluate the skills gap in the discipline of business management, based upon the perceptions of students as compared to the expectations of employers. While it has been assumed that the skills gap may be a shortcoming of higher education’s inability to understand employer needs (Everson 2014), it is expected that the gap is more a result of misaligned student interpretations of employer needs and an academic environment that increasingly views the student as the customer. If faculty consider the employer as a primary customer, then perhaps academic programs can be redesigned to provide better opportunities to new graduates.

An implementable optimization of airfare structure

Pricing and especially fare structures have received little attention within the revenue management literature. For an airline, well-designed fare structures segment customers properly, selling to correct customers at intended prices. For a given origin and destination, the pricing manager seeks to maximize revenue by jointly optimizing all price levels in the airline’s menu of fares. Deterministic demand is modeled using booking periods as primary customer segments; inventory management is integrated as a secondary segmentation tool. Analytical solutions are attained under various demand functional forms, and comparative statics are juxtaposed to reveal characteristics of each demand type.

The relationship between Institution Branding, Teaching Quality and Student Satisfaction in Higher Education in Hong Kong

The rapid expansion of Hong Kong’s higher education sector both in the government-funded and self-funded higher education in Hong Kong generated a high competition in this industry. In order to study how institutions increase their competitiveness, this study investigated the relationship between the institution branding, teaching quality and student satisfaction. A quantitative research was conducted to empirically test three hypotheses by employing a questionnaire survey. As the primary customers of higher education, full-time students enrolled in post-secondary programs offered by government-funded and self-funded higher education institutions in Hong Kong were randomly selected as the targeted participants. Two thousand students were sent questionnaires and 1,170 valid responses were received, representing a response rate of 58.5%. Results of the analysis show that the teaching quality has a positive and significant influence on institution branding, institution branding has a positive and significant influence on student satisfaction whilst the mediating effect of institution branding is only considered as a partial mediation between teaching quality and student satisfaction. The study contributes to the higher education debate and provides unique student-perceived insights into institution branding, student satisfaction and the quality of teaching in Hong Kong’s higher education sector.

Perceptions and Expectations of Medical Students towards the Quality of Educational Services offered at A Sudanese University: How Far is the Gap?

Background: Students are the primary customers of high education service, and are becoming more aware of their consumer rights and of gaps between their expectations of service delivery and the reality of services. Objective: of this study was to investigate medical students’ perceptions and expectations of educational services quality at X University in Sudan. Methods: One hundred ninety six registered medical students in the academic year 2013- 2014, were enrolled; sample was collected through convenience sample technique. The study was conducted by the use of Modified SERVQUAL questionnaire. SPSS version 20 was used for data analysis. Results: There was a negative mean score for quality gap in all dimensions of service quality. Students perceived tangibles as quality indicators of the service quality at university, and expect universities to have modern-looking equipment, so that staff can provide efficient service to them. There was a strong student concern about teaching staff promises regarding timetables and exam schedules to be fulfilled on time, which indicated the area of most concern amongst the respondents (gap score – 1.94). A clear communication problem regarding service delivery was inferred, as students perception towards solving their problems was very low (gap score -1.91). Conclusion: students’ perceptions of services delivered by X University falls below their expectations; that indicates student’s dissatisfaction. This large gap constitutes a great challenge to the administrators and educational policy makers, who are recommended to consider students feedback as a quality indicator in the quality assurance process. Keywords: medical student, quality education, Sudan.

Leveraging <i>Torihiki-Jisseki</i> through Japanese Small- and Medium-Sized Enterprises' Overseas Businesses

IntroductionThis study discusses corporate domestic growth after an expansion in overseas production. In response to discussions about the hollowing out of industries, that is, domestic production decreases because of an expansion in overseas production (Nakamura & Shibuya, 1995), some recent studies, primarily in the field of international economics, have noted that domestic production increases with an expansion in overseas production (Hijzen, Inui, & Todo, 2007; Matsuura, Motohashi, & Hayakawa, 2008; Yamashita & Fukao, 2010). At the same time, focusing on international management, Amano (2000, 2005) identified a mechanism wherein an expansion in overseas production leads to an increase in domestic production. In this phenomenon, domestic production increases through an expansion in overseas production, thereby promoting two conversion behaviors: spontaneous and induced (Amano, 2000).However, Amano studied large firms with abundant management resources, making the study a poor fit for small- and medium-sized enterprises (SMEs) with few management resources. If one posits that SMEs experience expanded domestic production after an overseas expansion, then what are the success factors causing such a phenomenon? This study aims to identify these mechanisms by investigating an SME that witnessed growth in domestic production because of an expansion in overseas production.This paper studies an SME that manufactures production goods. Customers often determine the functionality and specifications of the products in this industry. This, in turn, helps determine what management resources and capabilities will be held by the company (Takashima, 1998). Entering into a business relationship with a new customer promotes the accumulation of company resources and capabilities and enables the company to grow (von Hippel, 1986). In Japan, where long-term, fixed relationships are a standard business practice 1 and keiretsu relationships usually dominate the automotive parts industry,2 it is difficult for new companies to enter the market (Asanuma, 1997).However, Japanese companies bound by fixed business practices domestically do not hold the same position overseas. In recent years, large firms expanding production overseas have demonstrated a tendency to procure parts locally (Kato, 2011). Unlike the situation in Japan, given a chronic shortage of suppliers in overseas markets, Japanese SMEs entering such markets find it possible to become suppliers with other firms even without precedents of such relationships in Japan.This paper concludes that as the global supply chains of Japanese firms expand, even SMEs can develop new customers among Japanese companies overseas. Japanese SMEs can even enter new relationships domestically if they can create a torihiki-jisseki (track record of transactions in Japanese) overseas, thereby expanding domestic production.Case Study of Japanese SMEs in ChinaThe case provided herein is of Company A, which expanded domestic production by first expanding overseas. Company A is a manufacturer of mainsprings, which are small springs used in car seats. The company has 130 employees in Japan and has a capital of 50 million yen. The company's primary customer is a 1st-tier Toyota supplier, Company I. Company A's Chinese subsidiary, Company a, has two business lines, wire ropes (created in 1998) and mainsprings (created in 2002). Company a started the mainspring business after ensuring the wire rope business was on track.Although Company I did not have a production site in China, Company a was set up in the country as a mainspring business in 2002. At the time, there were almost no local companies that could manufacture automotive springs; thus, Company a's main competitors were other Japanese firms. The number of automobiles sold in China in 2002, when Company a started its mainspring business there, was 3.2 million. This number rose to 8.8 million in 2007 and 19. …

Effect of student perceived service quality on student satisfaction, loyalty and motivation in Indian universities

Purpose This paper attempts to develop and validate a service quality instrument called HiEduQual to measure the perceived service quality of students in higher education institutions. This paper aims to propose a structural model by examining the theoretical and empirical evidences on the relationships between students’ perceived service quality (SPSQ), students’ satisfaction (SSt), students’ loyalty (SL) and students’ motivation (SM). Design/methodology/approach The paper uses survey research design to gather data regarding attitudes of students about quality of service, satisfaction, motivation and loyalty from seven public universities in India and tests the relationships between these variables using structural equation modeling. Findings The paper identifies a model with six-structured dimensions containing 23 items for HiEduQual. It proved the direct positive effect of the perceived service quality of students on satisfaction, loyalty and motivation. The paper also supports the partial and complete mediation role of students’ satisfaction between perceived service quality of students, their loyalty and motivation toward services being provided by the universities. The competing Model 1 (M1) with partial mediation role of students’ satisfaction between students’ perceived service quality, loyalty and motivation was proved as the best among the alternative models. Research limitations/implications The paper developed and tested a new measurement instrument that covers all the service aspects experienced by the student as primary customer in higher education. Further studies can also measure service quality of the universities in the perspective of other key stakeholders. The authors would recommend studying other possible antecedents which would have influence on satisfaction motivation and loyalty. Practical implications The findings suggested that it would be worthwhile for university leaders to make proper allocation of resources, to provide better educational services including support services and facilities. It is believed that this paper has a significant competence for engendering more precise applications related to quality of services, especially concerning students’ satisfaction, loyalty and motivation. Social implications The changing nature and need of higher education services and increase in competitive intensity necessitates higher performance levels in the Indian higher education (universities). These can only be achieved through a better understanding of the expectations of students and the importance placed by them on aspects such as teaching, administrative services, academic facilities, campus infrastructure, support services and internationalization. The paper identified that student perceived service quality is a key antecedent to student satisfaction, motivation and loyalty, which conveys that service quality is an important construct. Originality/value Previous studies have primarily focused on the relationship between service quality, satisfaction and loyalty. Along with the above, this paper includes students’ motivation and assesses the effect of service quality and satisfaction on motivation which was not previously used in services marketing research, especially in higher education sector. Higher education service holds some unique features like customers’ (student) cognitive participation in the service process, requirements of the students to be fulfilled by different parties and long-term continuous services. All these features require student participation. The results indicate that quality of academic and non-academic services play a vital role in motivating students to perform better in their academics.

Rethinking Our Human Resources

Rethinking Our Human Resources

Analysis of priority retrial queue with many types of customers and servers reservation as a model of cognitive radio system

Cognitive radio is emerging as one of the key information transmission technologies to enhance spectrum efficiency for dramatically increased wireless network capacity requested by end users. Dynamic spectrum access allows effective use of radio frequency and prevents its underutilization in many real-world networks. It enables unlicensed users to temporarily “borrow” unused spectrum while ensuring that the rights of the incumbent license holders are respected. Problems of optimization of joint access of primary and secondary users can be effectively solved by means of queueing theory. In this paper, the analysis of a novel queueing model suitable for the optimization of access is implemented under quite general assumptions about the system parameters. There are several types of primary customers having different requirements for the service time and preemptive priority over secondary customers. Secondary customers can share a server, while primary customers occupy the whole server. The arrival flow is described by the marked Markovian arrival process. The service time distribution is of phase-type. Effect of retrials of secondary customers is taken into account. An effective way for the analysis of multi-server queues with many types of customers and heterogeneous requirements to the service process is provided and applied.

Preparing Next Generation Graduates for a Global Engineering Workforce: Insights from Tomorrow's Engineers

Transforming Undergraduate Engineering Education (TUEE) project was launched to produce a clear understanding of the qualities engineering graduates should possess and to promote changes in curricula, pedagogy, and academic culture needed to instill those qualities to meet the needs of industry in the 21 st century. For the initial phase of this multi-year study, ASEE hosted a two-day workshop Integrating Industry Perspectives designed to hear the voice of the primary customer - employers, in an intensive exploration of the knowledge, skills, and abilities (KSAs) needed in engineering today and in the coming years. The 34 industry attendees identified 36 KSAs that form the core competencies, an array of skills and professional qualities that will help students succeed in a dynamic, rapidly changing field. Industry seeksa T-shaped engineering graduate who brings broad knowledge across domains and the ability to collaborate within a diverse workforce as well as deep expertise within a single domain. The second workshop Insights from Tomorrow' s Engineers was intended to erect a framework for transforming the undergraduate engineering experience. With help from engineering deans, ASEE invited a broadly diverse group of 41 undergraduate and graduate students to ponder 36 characteristics of engineering graduates most sought by industry. The students then joined a two-day workshop in Washington, DC to brainstorm ways in which engineering instruction could be improved to meet demands of the contemporary workplace. Overwhelmingly, students concluded that schools were paying insufficient attention to an array of knowledge, skills, and abilities (KSAs) needed to produce the desired T-shaped professional - one who brings broad knowledge across domains, deep expertise within a single domain, and the ability to collaborate with others in a diverse workforce.

A queueing model with two classes of retrial customers and paired services

We mathematically investigate a single server system accepting two types of retrial customers and paired service. If upon arrival a customer finds the server busy, it is routed to an infinite capacity orbit queue according to each type. Upon a service completion epoch, if at least one orbit queue is non-empty, the server seeks to find customers from the orbits. If both orbit queues are non-empty, the seeking process will bring to the service area a pair of customers, one from each orbit. If there is only one non-empty, then a single customer from this orbit queue will be brought to the service area. However, if a primary customer arrives during the seeking process it will occupy the server immediately. It is shown that the joint stationary orbit queue length distribution at service completion epochs is determined by solving a Riemann boundary value problem. Stability condition is investigated, while generalizations of the main model are also discussed. A simple numerical example is obtained and yields insight into the behavior of the system.

Optimal pricing and core acquisition strategy for a hybrid manufacturing/remanufacturing system

Remanufacturing is one of the product recovery options where the quality of used products (cores) is upgraded to ‘as-good-as-new’ conditions. In this article, we consider a monopolist firm selling new and remanufactured products to quality-conscious primary customers and price-sensitive secondary customers, respectively, with one-way substitution, i.e. some primary customers may substitute new products by remanufactured products while secondary customers can never afford to buy new products. We develop economic models under two scenarios – when the supply of cores is unconstrained and when manufacturers have to procure cores at an acquisition price. The major observations of the article are as follows. A firm is better off when there is no constraint on the supply of cores. Even when cores have to be acquired at an acquisition price, the profitability is higher than that when the firm does not engage in remanufacturing activities. When a larger number of primary customers replace new products with remanufactured products, there is partial cannibalization of new product sales; however, the combined market share and profitability of the firm increase. When core supply is constrained and customers are less sensitive to core prices, the limited supply of cores may render remanufacturing an infeasible option for the firm. Therefore, firms should not only generate awareness among primary customers to buy remanufactured products, but also step up efforts to ensure a steady supply of cores. We conclude the article with managerial implications and directions for future research.

From a Service to a Brand: TUR-Room Inspection, Patient Journals, After-Sales Greetings in the Witten Marketing Concept

Marketing in economic systems means to create a brand in a competitive surrounding to serve customers as a target. Thereby, elements of marketing are product policy and pricing as well as distribution. Due to the fact that not only products and services are almost not modifiable at all and that price variation is impossible due to the DRG system but also common distribution channels, such as retail or wholesale, are prohibited, the fist mentioned marketing elements are of special importance. Primary customers are the referring physicians who are well served by medical education or presentations, which belong to the common facilities of a hospital department. Nowadays one can observe an increasing mobility of patients and an increasing willingness to inform themselves about medical topics and the service provider behind them. In conclusion, the maintenance of patients is a growing field for the economic success of a hospital or a hospital department. The marketing elements are ruled by the "Heilmittelwerbegesetz" and must fulfill the standards which are defined by this statute. Patient´s journals, a guided tour around the procedure rooms with technical equipment, an after-sales postcard and the participation in events not only with medical contents, such as fairs, can help to steadily establish an image, for example, as an ambitious and caring service provider.

Retrial queueing models in discrete time: a short survey of some late arrival models

This paper presents an overview of one-server queueing models with retrials in discrete-time. In all these models the number of primary customers arriving in a time slot follows a general probability distribution and the different numbers of primary arrivals in consecutive time slots are mutually independent. Each customer requires from the server a generally distributed number of slots for his service, and the service times of the different customers are independent. Only models with delayed access are considered, and the so-called late arrival setup is chosen. For all the models the steady-state behavior is studied through the generating function of the number of customers in the orbit. From the generating function several performance measures are deduced, like the average orbit size and the mean busy period.