Dimentions and outcomes of buyer-seller relationship intentions for concrete products in the construction environment
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Date
2020-05
Authors
Masitenyane, Lehlohonolo Amos
Journal Title
Journal ISSN
Volume Title
Publisher
Vaal University of Technology
Abstract
In recent years, the concept of relationship-marketing earned eminence in academia with associated implications for marketing strategy.
The aim of this study was to examine relationship intentions in the business-to-business (B2B) context from the concrete product environment within the construction industry of South Africa. Literature reviewed reveals that empirical studies for concrete product environment and the construction industry is limited, principally in South Africa, concerning the dimensions of relationship intentions. As deliberations on relationship-marketing intentions carry on maturing, there are imperative concerns yet to be clarified, one of which relates to customer’s buying behaviour in relation to the dimensions and outcomes of relationship intentions. Given the increasing prominence of customer buying patterns in modern marketplaces, the study intends to empirically analyse the dimesions and outcomes of buyer-seller relationship intentions, with reference to the civil and building concrete product users in a B2B setting within the South African construction industry. The civil and building engineering contractor segments were selected as research sites owing to their scope and size, which signify a productive market segment with prospects of influencing future behavioural intentions in the construction environment.
The the study was underpinned by the relationship-marketing theory and social exchange theory, which clarified the dimensions and outcomes of relationship intentions of the civil and building constructs that underlie concrete products. As the study intended to determine the dimensions and outcomes of relationship intentions of civil and building contractors (customer) towards their concrete product manufacturer (supplier) organisations, a descriptive research method was chosen. The objective being to confirm and expand the dimensions of buyer-seller relationship intentions in the B2B industry context and to examine the explanatory power of the indetified dimensions. The current study employed a quantitative research method that is entrenched in the post-positivist paradigm, which also underpins this study. Data were collected using probability sampling in the form of systematic random sampling. A sample size of 560 respondents returned fully completed questionnaires.
As the study was descriptive in nature, the reliability and validity of data were analysed, correlation analysis and structural equation modelling (SEM) were performed. The exploratory and confirmatory factor analysis were also conducted to confirm and expand the factor structure of the relationship intention dimensions. Preceding the main study’s data collection process, a pilot survey was undertaken to examine the correctness and accuracy of the questionnaire. The data collected were examined with the use of Statistical Package for the Social Sciences (SPSS) 25.0 and Analysis of Moment Structures (AMOS) version 25.0. The preliminary data analysis included the procedure of coding and examining the distribution of scores. In addition, the normality test results revealed that data were normally distributed. To confirm the consistency of the measuring instrument and its items, the reliability and validity tests were carried out. The results of the consistency of measures demonstrated that the measuring instrument was reliable. The correlation analysis disclosed a weak relationship between expectations, involvement and feedback towards relationship quality, whereas a moderate association was revealed between forgiveness and trust towards relationship quality, while a strong association was discovered between fear of relationship loss, information sharing and flexibility towards relationship quality construct.
The suitability of the measurement and structural models were evaluated prior to testing the hypothesised relationships. The suggested relationships were verified by structural equation modelling (SEM). The hypotheses testing findings revealed that concrete product repurchase intentions by the study respondents were significantly and positively motivated by the supplier’s relationship quality and commitment that leads to customer satisfaction, loyalty and repurchase intentions. A framework of relationship marketing intentions for the concrete product environment of the South African construction industry was developed. It was anticipated that the proposed framework will contribute towards addressing the insufficiencies in the application of relationship marketing strategies. The empirical study results advocated that concrete product manufacturer-suppliers (CPM) must invest in methods of increasing their levels of relationship quality and commitment to maintain customer satisfaction and loyalty, which will lead to customer repurchase intentions. The study results revealed that unlike previous relationship intention studies that found five dimensions, this study proposed and found eight (involvement, expectations, forgiveness, feedback, fear of relationship loss, trust, flexibility and information sharing/exchange) dimensions of relationship intentions within the B2B concrete product environment. Furthermore, the study results revealed that customer satisfaction can be upheld by concentrating on relationship building strategies, which fuel customer loyalty and repurchase intentions by meeting or exceeding customer needs and requirements.
One of the study contributions is the investigation of the order of the dimesions of relationship intentions in a B2B context for the concrete product environment within the construction industry. Therefore, the study pens down both the theoretical and practical contributions to the relationship marketing literature. Paths for additional research is offered. The outcome of this study advanced a framework of the dimensions of relationship intentions, which may possibly benefit future researchers.
Future studies must consider the application of a cohesive research model, which includes supplementary variables using a larger sample size utilising a longitudinal study with the purpose of increasing generalisability of the results.
Description
D. Tech. (Department of Marketing Management, Faculty of Management Sciences), Vaal University of Technology.
Keywords
Civil and building engineering, Concrete products, Construction industry, Contractors, Relationship intentions, Relationship quality, Commitment, Satisfaction, Loyalty and repurchase intentions