This document discusses a study on how performance, cost, and competitive considerations impact the relationship between customer satisfaction and repurchase intent. The study found that overall satisfaction does not always translate directly to repurchase intent. Repurchase decisions are also influenced by a customer's perceptions of alternative suppliers and relative performance versus competitors. Specifically, the quality of problem-solving services had a greater impact on repurchase intent than product quality alone. The study was limited by its focus on firms rather than specific products/services. Future research could further explore the impacts of multiple suppliers on post-purchase behavior and repurchase decisions.

1. THE REPURCHASE DECISION PROCESS
The Impact of
Performance, Cost & Competitive Considerations
on the Relationship Between
Satisfaction and Repurchase Intent
in Business Markets
A Whitepaper by -
Piyush Kumar MBA-2012 | COHORT-7
Vanderbilt University Asian Institute of Management

2. Presentation Flow
Conclusion
• Limitations
Modeling • Future Research
• Topics of Modeling
Hypothesis
• Evaluation Criteria
• Supplier’s Dilemma
• Satisfaction • Data Collection
• Empirical Findings

3. Hypothesis
Performance
criteria
influences
customer overall
satisfaction
Effective
Customer
retention
Customer
strategy
experiences
with competing
supplier affect
their repurchase
intention

4. Supplier’s Dilemma
Customer
management
Program
Profitability
Even after having effective Customer management program still
Customer tends to have multiple supplier for 2/3rd of their requirements

5. What is Satisfaction?
Prior
expectation
Satisfaction
level
Performance
level

6. Overall Satisfaction Model
◦ Overall satisfaction is a customer’s judgment
regarding a fulfillment from product/service/firm
◦ Evaluation Process
◦ Use a set of Performance & Cost Criteria
◦ Aggregate multiple judgments to form global judgment
◦ Process Model of Satisfaction
◦ Evaluation Criteria based on –
◦ Competitive Norms
◦ Expectations & Performance
◦ Equity & Desires

7. Repurchase Intent Model
◦ Repurchase Decision Process in B2B is complex
◦ Performance | Cost | Competitive Considerations
◦ Overall Satisfaction & Repurchase Intent are different
◦ Service is less important in Repurchase Decision
◦ Market share has marginal correlation w/satisfaction
◦ Not evaluated in isolation; w.r.t. alternate supplier
◦ Implications for Suppliers of B2B Customers
◦ Benchmark for evaluation varies across customer base

8. Repurchase Intent Model
Satisfaction Satisfaction
Gain/Loss Gain/Loss
Focal Alternate
Supplier Repurchase Supplier
Intent
Cost Cost
Gain/Loss Gain/Loss

9. Relevant Criteria for Evaluation
Performance Product Quality Quality of product offering
Criteria
Assistance in developing solutions
Customer Service Quality of Sales Team Leader
Delivery Processes
Cost Criteria Acquisition Cost
Maintenance Cost

10. Evaluation of Suppliers
◦ Core product
◦ Business Solution Development
◦ Sales team performance
◦ Delivery process
◦ Total Cost of Ownership = Acquisition Cost +
Maintenance Cost
◦Increase in the satisfaction of these criteria will
increase the chances of Repurchase

11. Data Collection & Estimation
◦ Key representatives from major organizations
◦ Overall satisfaction with the supplier firm
◦ Based on people, products and services
◦ Likelihood of buying services to meet future needs
◦ Reduction of TCO is main criteria for all Buying Centers

12. Empirical finding of the research

13. Driving force for
Overall Satisfaction
Problem solver not just product offering
Enhance satisfaction by post purchase service
by sale force
Cost doesn’t have significant impact
Offer complete package

14. Driving force for
Repurchase Intent
Level of customer satisfaction may not result in
repurchase intent.
Customer’s perception of the overall competitiveness
of the supplier
Both overall and relative satisfaction
Quality of product offering and ability to solve
customer’s problems
Service offering part has greater impact than product
offering part

15. Conclusion
◦ Relation b/w Satisfaction & Repurchase Intent is
non-linear and content-based approach shows that
◦ Effect of Cost & Competitive Considerations on Repurchase
◦ Weight of Performance Criteria varies in OSat & RepInt
◦ Repurchase Intent is a measure of future purchases
◦ Recent alternate suppliers impact Repurchase Decisions

16. Limitations & Future Research
◦ Limitations
◦ Focus was on the firm and not on product/service
◦ Intent is not a perfect predictor of future purchase
◦ Future Research
◦ Bolster the Theory of Post-Purchase Behavior
◦ Impact of multiple suppliers on Repurchase Decisions

17. Thank You!
Deepak Damodaran Sahil Shah
Indrani Basu Sandeep Kumar
Madhuranath R Surendra Kumar