The Impact of Retailer’s Economic and Social Satisfaction on Its Commitment, and the Moderating Effect of Manufacturer Brands’ Strength

Abstract

Available literatures have confirmed that there are unstable and complex relationship between manufacturers and large retailers especially in the growing strength of retail organizations in the global context. This study thus examines the impacts of retailer's satisfaction dimensions on its commitment, and the moderating effect of the manufacturer brands' strength on the relationships between retailer's satisfaction dimensions, and its commitment. This quantitative study presents the empirical findings from a survey of 140 large retailers using partial least squares (PLS). The results indicate that retailer's economic and social satisfaction have strong positive influence on retailer's commitment, and surprisingly, the retailer's social satisfaction is more influential on its commitment than retailer's economic satisfaction. The study also found that the strength of manufacturer's brands enhances the relationship between retailer's economic satisfaction and its commitment, but not the relationship between retailer's social satisfaction and its commitment. Theoretical and managerial implications are extracted from these findings.

Does absorptive capacity moderate the relationship between entrepreneurial orientation and supply chain resilience?

“…A partial least squares (PLS) method was used for data analysis by SmartPLS version 2.0 3 M, as suggested by Ringle et al (2005). PLS-SEM has many characteristics that lead to its extensive use in management research (Goaill et al, 2014). It is considered a suitable method for small samples (Henseler et al, 2009) because when used on complicated models of limited sample sizes, it demonstrates greater statistical power than the covariance-based SEM (Reinartz et al, 2009).…”

How to measure B2B relationship value to increase satisfaction and loyalty

“…Finally, the one-dimensional measurement of relationship value, as well as satisfaction and loyalty, were evaluated using scales with minor adaptations based on those proposed by Eggert (2006a, 2006b) and Daugherty et al (1998), respectively. Data were collected using a structured questionnaire to measure retail customers' perceptions of the offer from their main supplier, following the standard method for gathering information in this type of study (Mapkhot Goaill et al, 2014). The items were evaluated using a five-point Likert scale (from "strongly disagree" to "strongly agree").…”

The Impact of Relational Marketing Bonds on Retailers' Economic and Social Satisfaction

“…Consistent with this, Gassenheimer and Ramsey (1994) viewed relationship satisfaction between two members of a marketing channel as including (a) economic findings in light of efficiency and efficacy and (b) the partners' social interaction . Other researchers have also highlighted two dimensions of satisfaction, which are economic satisfaction and social satisfaction, in the relationship between manufacturers and retailers (e.g., Chung, Ying Huang, & Sternquist, 2011;Goaill et al, 2013Goaill et al, , 2014Rodríguez et al, 2006). Furthermore, according to the social exchange theory put forth by Blau (1964), satisfaction in exchange relationships can be divided into social and economic satisfaction (Low, Lee, & Cheng, 2013).…”

“…The literature dedicated to the marketing channel emphasizes the importance of economic and social satisfaction for retailers, because a manufacturer's activities may produce a retailer's economic satisfaction while undermining its social satisfaction, or vice versa (Gil, Yu, Johnson, & Pomering, 2008;Goaill, Perumal, & Mohd Noor, 2014). Moreover, economic satisfaction is likely to have differing antecedents than noneconomic satisfaction (Geyskens & Steenkamp, 2000;Mohd Noor, Perumal, & Zolkafli, 2010).…”