TY - JOUR
T1 - Relationship factors and firms' willingness-to-pay
T2 - A comparison of east-west settings
AU - Nyadzayo, Munyaradzi W.
AU - Mohan, Mayoor
AU - Casidy, Riza
PY - 2020/11/1
Y1 - 2020/11/1
N2 - The aim of this study is to examine the underlying mechanism that explains the effects of supplier firms' sustained competitive advantage (SCA) on customer firms' willingness-to-pay a price premium (WTP) across Eastern and Western settings. Drawing upon the relationship marketing (RM) paradigm, we posit that SCA influences WTP via calculative commitment and relationship quality (RQ). A survey involving executives from Australian (n = 336) and Chinese (n = 360) firms was conducted to test the theoretical model. The findings reveal that the effect of SCA on WTP is mediated by RQ and calculative commitment among Chinese firms. Among Australian firms, however, the effect of SCA on WTP is mediated only by RQ and not calculative commitment. The study contributes to the literature by distinguishing the role of ‘rational’ (i.e., calculative commitment) and ‘emotional’ (i.e., affective commitment and RQ) relationship factors in influencing WTP, and by validating a multidimensional RQ model that is applicable to culturally diverse contexts. To marketing practitioners, this research helps to identify the conditions under which RM practices can be effective for B2B firms that operate across diverse cultures.
AB - The aim of this study is to examine the underlying mechanism that explains the effects of supplier firms' sustained competitive advantage (SCA) on customer firms' willingness-to-pay a price premium (WTP) across Eastern and Western settings. Drawing upon the relationship marketing (RM) paradigm, we posit that SCA influences WTP via calculative commitment and relationship quality (RQ). A survey involving executives from Australian (n = 336) and Chinese (n = 360) firms was conducted to test the theoretical model. The findings reveal that the effect of SCA on WTP is mediated by RQ and calculative commitment among Chinese firms. Among Australian firms, however, the effect of SCA on WTP is mediated only by RQ and not calculative commitment. The study contributes to the literature by distinguishing the role of ‘rational’ (i.e., calculative commitment) and ‘emotional’ (i.e., affective commitment and RQ) relationship factors in influencing WTP, and by validating a multidimensional RQ model that is applicable to culturally diverse contexts. To marketing practitioners, this research helps to identify the conditions under which RM practices can be effective for B2B firms that operate across diverse cultures.
KW - Cross-cultural
KW - Emerging markets
KW - Relationship marketing
KW - Relationship quality
KW - WTP
UR - http://www.scopus.com/inward/record.url?scp=85093969426&partnerID=8YFLogxK
U2 - 10.1016/j.indmarman.2020.10.005
DO - 10.1016/j.indmarman.2020.10.005
M3 - Article
AN - SCOPUS:85093969426
SN - 0019-8501
VL - 91
SP - 397
EP - 410
JO - Industrial Marketing Management
JF - Industrial Marketing Management
ER -