Why do SMEs switch suppliers?
The Journal of Business & Industrial Marketing
; 37(7):1463-1474, 2022.
Article
in English
| ProQuest Central | ID: covidwho-1853377
ABSTRACT
Purpose>Combining a conceptual framework with empirical evidence, this study aims to offer insights into why small and medium-sized enterprises (SMEs) in the business-to-business beauty sector switch suppliers, due to pricing considerations.Design/methodology/approach>Data gathered from 475 telephone surveys of Spanish hairdressers provide the input for discrete choice models for testing the proposed hypotheses.Findings>The SMEs that change suppliers tend to be sensitive to promotions, express less satisfaction with a current supplier’s offerings and serve fewer customers who buy professional products for their in-home use. If SMEs are satisfied with the supplier’s services though, they are less likely to change and more prone to negotiate with that supplier.Research limitations/implications>This study does not address why dissatisfied SMEs might remain with their current suppliers. Further research might replicate this study using additional pricing data from suppliers.Practical implications>Suppliers in business-to-business (B2B) sectors can leverage these findings to allocate their marketing budgets optimally and establish service strategies that will enable them to retain buyers and reduce their switching risk.Originality/value>As an extension of extant literature, this study specifies switching drivers for SMEs in the B2B beauty sector. The findings should apply throughout this worldwide service sector, as well as to similar markets such as health, beauty and personal care and well-being services.
Business And Economics--Marketing And Purchasing; SME; Switching; B2B; Supplier; Pricing; Hairdresser; Salon; Satisfaction; Service strategy; Customer services; Behavior; Brand loyalty; Consumers; Purchasing; Hairdressers; Costs; VAT; Profits; Small & medium sized enterprises-SME; Suppliers; Business to business commerce; COVID-19; Spain; 81211:Hair, Nail, and Skin Care Services; 42511:Business to Business Electronic Markets
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Language:
English
Journal:
The Journal of Business & Industrial Marketing
Year:
2022
Document Type:
Article
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