Demand chain alignment competence — delivering value through product life cycle management

This paper endorses demand chain alignment as a competence that supports effective product life cycle (PLC) management. Demand chain alignment integrates the demand creation (historic domain of marketing) and demand fulfilment processes (domain of supply chain management), to develop and to deliver products that convey superior customer value while deploying resources efficiently. So far, the relationship between demand chain alignment and PLC management has only been addressed from an operations and demand/supply chain perspective, but not from a marketing perspective. Three research propositions, on the relationship between both concepts, are derived from a literature review and applied to a case study from a global player in the tobacco industry. The findings do not support the current view that the product life cycle is a market-oriented classification variable for demand chain strategies. Instead, demand chain alignment needs to link customer needs-based segments with the supply chain. Moreover, PLC management and demand chain alignment have a mutually reinforcing relationship, in which PLC management can facilitate the competence development, ensures a dynamic perspective and, at the same time, benefits from aligned demand creation and fulfilment processes. Based on the findings, a model integrating demand chain alignment and PLC management is proposed.     

Building competences for new customer value creation: An exploratory study

Recent marketing literature suggests companies to become market driving (proactive business logic, changing the rules of the market) instead of market driven (reactive business logic, customer-led). This transformation implies that companies are able to boost their capacity to create new customer value. Based on survey data of business-to-business markets, we advance a tentative model that links competence development to new customer value creation. Although exploratory in its nature, our study exhibits that companies should build three types of competences: marketing practices for external knowledge absorption, general organizational competences and supply chain/network competences. Using cluster analysis, we are able to further link these competences to the capacity of new value creation. Four clusters are detected with different degrees of expertise in new value creation and each displaying their own profile of competences. Becoming market driving requires an integrated and balanced view on marketing practices.     

Supplier competence alignment: Cases from the buyer perspective in the Brazilian market

The research presented here has a double purpose. On the one hand to better define and frame the field of inter-organizational transfer of competences, and on the other to suggest that the competence-based marketing view can well stem from marketing initiatives targeting not just customers, or customers' customers, but also other actors in the market, in this instance suppliers.This research focus has led us to select a precise area of study so as to obtain situations in which the probability of the existence of transfer of competence is high. We chose to centre the study on transfer of competences in the area of logistics between MNCs and their local suppliers in Brazil.Research findings lead to proposals regarding correlations between types of competences transferred, transfer mechanisms and strategic objectives of the transfer.     

Demand chain management-integrating marketing and supply chain management

This paper endorses demand chain management as a new business model aimed at creating value in today's marketplace, and combining the strengths of marketing and supply chain competencies. Demand chain design is based on a thorough market understanding and has to be managed in such a way as to effectively meet differing customer needs. Based on a literature review as well as the findings from a co-development workshop and focus group discussions with marketing and supply chain professionals, a conceptual foundation for demand chain management is proposed. Demand chain management involves (1) managing the integration between demand and supply processes; (2) managing the structure between the integrated processes and customer segments and (3) managing the working relationships between marketing and supply chain management. Propositions for the role of marketing within demand chain management and implications for further research in marketing are derived.     

Leadership, the buying center, and supply chain performance: A study of linked users, buyers, and suppliers

With conceptual foundations taken from leadership theory and the resource-based view (RBV), this study examines the influence of transactional and transformational leadership on the relationship between the value of the corporate buying center and performance in supply chains. The sample consists of 58 directly linked and matched supply chains, each composed of one user (internal customer), one corporate buyer, and one external supplier. The results indicate that transformational leadership has a positive moderating effect on the relationship between the value of the corporate buying center and performance, while transactional leadership negatively moderates this relationship. Two “localness” dimensions (formalization and centralization) and two “openness” dimensions (participative and reflective) were included as controls in the analysis.     

The environment and its impact on satisfaction with supplier performance: An investigation of the mediating effects of control mechanisms from the perspective of the manufacturer in the U.S.A.

An important question for manufacturers relates to how to conduct exchanges with suppliers when the interaction is done in an uncertain environment. Existing literature suggests the use of unilateral control (i.e., vertical control over the supplier) to reduce the negative effects of environmental uncertainty, whereas recent research on relational norms suggests bilateral control mechanisms (i.e., the norm of information sharing) as an alternative. We propose that in order to secure satisfactory performance from suppliers, manufacturers rely on different control mechanisms depending upon the level of environmental uncertainty on one hand, and the nature of interdependence in the manufacturer-supplier relationship on the other. Our empirical results based on 162 manufacturers indicate the following: 1) manufacturers' reliance on vertical control increases as environmental uncertainty and power asymmetry increase; 2) by contrast, reliance on the bilateral information sharing increases as interdependence magnitude increases and as environmental uncertainty decreases; 3) suppliers' performance, as perceived by manufacturers, increases with the use of bilateral information sharing.     

Are key account relationships different? Empirical results on supplier strategies and customer reactions

In this paper, the authors analyze 91 key account relationships and 206 ordinary supplier-buyer dyads regarding differences in suppliers' relational behaviors and customers' perceptions of relationship quality (satisfaction, trust, and commitment). The results suggest that while - as compared to ordinary relationships - suppliers put significantly more effort in “value-creating behaviors” in key account relationships, they do not modify their “value-claiming behaviors” in those dyads. On the customer side, suppliers' increased value creating activities lead to increased commitment. However, customers are neither more satisfied, nor do they trust their suppliers more when they receive key account status.     

Buyer animosity in business to business markets: Evidence from the French nuclear tests

Academic studies of buyer reaction to unpopular political events in the country of origin of products have focused on consumer markets. This paper aims to extend Klein, Ettenson and Morris' [Klein, J., Ettenson, R., & Morris, M. (1998). The animosity model of foreign product purchase: An empirical test in the People's Republic of China. Journal of Marketing, 62(1), 89-101] concept of consumer animosity to industrial markets by comparing industrial and consumer buyer reaction to the nuclear tests conducted by France in the Pacific in the mid-1990s. It investigates whether firms in the B2B sector were affected more than those in B2C markets, whether entry mode was significant, and examines the way in which firms in the two market sectors responded. The results show that buyer animosity was less pronounced in industrial than in consumer markets. They also show that entry mode can influence the experience of animosity.     

Optimal pricing and advertising strategy for introducing a new business product with threat of competitive entry

The problem of optimal joint pricing and advertising decision making for a new product facing potential competitive entry has received inadequate attention. We propose a model that attempts to find the optimal price-advertising frontier in the face of potential competitive entry that maximizes total discounted profits for pre- and post-entry periods. We find that a firm would charge the price that equates price elasticity to marginal revenue product of advertising (as predicted by [Dorfman, R. and Steiner, P.O. (1954), Optimal Advertising and Optimal Quality, American Economic Review, 44(5), 826-836.]) only when the potential effects of pricing and advertising on its market share are not considered. Under optimal conditions, aware that market share is subject to erosion, the firm charges a somewhat lower price than the profit maximizing price, and sets an advertisement expense that is somewhat higher than the profit-maximizing advertising level as predicted by Cournot's monopolistic setting. We illustrate the applicability of our model using business product examples taken from several industries including operating systems, software, pharmaceutical, and telephone switching. Directions for future research with implications for B2B managers (for example, the possible effects of preannouncement to forestall competitive entry) are discussed.     

Demand choices of high-tech industry for logistics service providers—an empirical case of an offshore science park in Taiwan

This study presents a methodological framework for analyzing factors that influence market share of third-party logistics (TPL) in high-tech industry. An emerging science park located in Southern Taiwan was chosen as the empirical case for the study. Confirmatory factor analysis was first conducted to examine the reliability and validity of the census data (136 outsourcing cases from 68 high-tech manufacturers). This was followed by calibrations of a binary logit model that examines the demand choices of the manufacturers in selecting two types of TPLs, express and forwarder. Results indicate that the strongest determinant of industrial demand choices is the service performance of the TPL, followed by service cost, and added value. In improving these service factors, the market share effect of express-based TPL is found to be slightly greater than that of forwarder-based. The analysis indicates that high-tech manufacturers with larger annual sales or smaller shipments favor express services over forwarding services.