Competitive Challenge of Suppliers with Vendors in B2B
Keywords:B2B, Suppliers, Vendors, Competitive Environment, Important Relationship in B2B
Purpose: To study the hidden factors of suppliers’ and vendors’ relationship in Business to the Business sector in Madhya Pradesh.
Design/methodology/approach: For this paper, 10 questions were asked to 856 suppliers of B2B of various products in various cities of Madhya Pradesh. The Relative Importance Index was calculated to rank the variables. The data was later subjected to factor analysis and hidden factors were observed
Findings: Suppliers expect Committed Relationship from their vendors. Suppliers trust their vendors/customers. They are proud to have their customers and in return their buyers trust them. However they face big competition in supplying the goods. Despite their customers (vendors) don't mind minor price changes. We find our customers loyal to us. Customers who are more price-sensitive are less loyal. Payment in time is an issue but not relatively important. The issues like payment in time and skipping orders in between are not important. There is competitive environment, as they are not the only supplier. The important factors are committed relationship and competitive environment. Factor analysis shows that committed relationship explain approximately 36% variances are explained while approximately 14% variances explained by competitive environment.
Key Words: B2B, Suppliers, Vendors, Competitive Environment, Important relationship in B2B
Paper type: Empirical Research
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