The undervaluation of corporate reputation as a supplier selection factor: An analysis of ingredient branding of complex products in the manufacturing industry |
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| Authors: | Bernhard Lienland Alexander Baumgartner Evelyn Knubben |
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| Institution: | 1. University of Regensburg, Chair of Management Accounting and Logistics, Universitätsstr. 31, 93053 Regensburg, Germany;2. Friedrich-Alexander-University Erlangen-Nuremberg, Bismarckstr. 1, 91054 Erlangen, Germany;1. University of Leicester, School of Management, Ken Edwards Building, University Road, Leicester LE1 7RH, UK;2. Coventry University, Coventry Business School, William Morris Building, Gosford Street, Coventry CV1 5DL, UK;1. CIISE, Concordia University, EV- 7.636, 1455 De Maisonneuve Blvd. West, Montreal, H3G 1M8, Quebec, Canada;2. Centre for Sustainable Supply Chain Engineering, Department of Technology and Innovation, University of Southern Denmark, Odense, Denmark;3. Faculty of Economics and Management, University of Kassel, Germany;1. Western Illinois University, 1 University Circle, Macomb, IL 61455-1390, USA;2. Eichenberger Consulting & Support Corporation, Rue de l''Industrie 3, 1700 Fribourg, Switzerland;1. Section Transport and Logistics, Faculty of Technology, Policy and Management, Delft University of Technology, 2628 BX, Delft, The Netherlands;2. Foisie School of Business, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA 01609-2280, USA |
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| Abstract: | Prior research studies on supplier selection factors assess vendor reputation as a low ranked criterion. Reputation in these articles, however, only refers to the position in the industry, without considering the role of the final customer. Our results from a survey with 565 individuals suggest that the end user as a stakeholder should be also considered when analyzing a vendor’s prestige. We demonstrate that a supplier’s standing has negative as well as positive reputational effects on the buyer. Depending on the relevance of the purchased good as well as the reputation of the supplier and the buyer, low/high-ranked ingredients significantly decrease/increase the final customer’s perception of the buyer. |
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| Keywords: | Supplier selection Selection factors Reputation Ingredient branding Complex products Automotive |
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