Who Owns The Customer? Disentangling Customer Loyalty in Indirect Distribution Channels

Presenter: Laura Chen10122617Instructor: Dr. Teresa HsuDec. 1, 2012

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Eggert, A., Henseler, J., & Hollmann, S. (2012).Who owns the customer? Disentangling customer loyalty in indirect distribution channels.Journal of supply chain management, 48 (2), 75-92.

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Introduction

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Introduction

Today the potential interplay between brand and distributor loyalty is still a blind spot in supply chain management.

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Introduction

To understand whether and how brand and distributor loyalty impact each other in indirect distribution channels

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Literature ReviewCustomer loyalty can be defined as an “intention to perform a diverse set of behaviors that signal a motivation to maintain a relationship.” (Sirdeshmukh, Singh & Sabel, 2002)

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Information Integration Theory(Carlson & White, 2008)

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Conceptual Model

(Knney, 1996)

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Step 1Step 1Step 1Step 1 Step 3Step 3Step 3Step 3Step 2Step 2Step 2Step 2

500 responses (overall response rate = 25.2 %)

500 responses (overall response rate = 25.2 %)

339 questionnaires were selected for empirical study

339 questionnaires were selected for empirical study

Pilot study with 48 respondents + Final survey to 1982 dental practices

Pilot study with 48 respondents + Final survey to 1982 dental practices

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Overall, I am very satisfied with our primary supplier.

I am very pleased with the performance of our primary

burr brand.

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CFA = Confirmatory Factor Analysis Evaluated

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H1: Brand loyalty has a positive effect on distributor loyalty.

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H2: Distributor loyalty has a positive effect on brand loyalty.

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H3: Brand loyalty has a positive effect on channel switching.

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H4 :Distributor loyalty has a negative effect on channel switching.

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H5 : Channel switching is more likely to occur if brand loyalty exceeds distributor loyalty.

B3 + B4 = 0

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Channel Channel SwitchingSwitching

Brand Brand loyaltyloyalty

DistributorDistributor loyaltyloyalty

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The empirical study confirms that brand and distributor loyalty should be consider two distinct yet interrelated constructs in channel research.

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Focused only on one product category. Channel switching can become more complex if customers purchase across several product.

Noticed that the model can only be applied to a single industry.

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THANK YOU!

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