The effects of technology-mediated communication on industrial buyer behavior Tony Yiu 29-Nov-2008

Introduction This research explores the topic by examining the effects of Buyer Satisfaction with the adoption of Technology-Mediated Communication (STMC) on channel partner relationship Sellers are embracing Technology-Mediated Communication such as: Videoconferencing systems Cellular phone Web sites (e-mail, voice mail, web-based ordering.) Electronic data interchange (EDI) systems

Response from Market Wilson and Vlosky (1994) found that coercive behavior by large buyer (Wal- Mart). It was disruptive to the supplier-retailer relationships. Investment in communication technology actually pays dividends for industrial suppliers but Cisco System claims huge success with 97% customer satisfaction and a 20% decrease in service costs on line ordering system (Goldenberg, 2000). Haegele (2000) on line small business found that only 48% of firm felt customer support offerings fit their needs, down from 60% in 1999.

The role of constructs Sellers attempt to control costs or maintaining the personal touch. Market was substantial change. The adoption of new technologies and design of technology-based are good for Customer Relationship Management (CRM) Systems. It relates to some key variables of industrial customer (Trust, Commitment and Future Intentions.) Decision making by Organizational Buyers based on perceived service quality, perceived value, trust, and commitment. Suppliers need to catch and match the attitudes and intentions of buyers. The role of constructs focus on: ---- Satisfaction, Trust, Commitment and Future Intentions.

Satisfaction Buyer behavior based on the transactional customer relationship accessed the repeat purchasing through previous experience rather than the development of trust and commitment. The impact of satisfaction on channel relations into two components: economic and non-economic (Geyskens et al., 1999). Economic Satisfaction is defined as a channel member’s positive effective response to the economic rewards such as sales volume and margins. Non-economic Satisfaction is defined as a channel member’s positive effective response to the non-economic, psychosocial aspects of its relationship—the interactions with exchange partner are fulfilling, gratifying and easy.

Defined Trust & Commitment Trust defined as; A party’s expectation that another party desires coordination will fulfill obligations and will pull its weight in the relationship. A willingness to rely on an exchange partner in whom one has confidence When one party has confidence in an exchange partner’s reliability and integrity Commitment has been defined as the enduring desire to maintain a valued relationship and is often considered to be a key ingredient for long-term exchange relationships. Commitment is made up of three components: Instrumental – some form of financial investment Attitudinal – a psychological attachment Temporal – a requirement that the relationship exists over time

Future Intentions Selling companies implement communication technologies with the hope of saving money while building existing relationships. The important of encouraging repeat business from buyer future intentions is crucial for most selling companies. Provided service actions on existing buyer will stay the supplying firm or seek others in the long run.

The Model of the effects of STMC on trust, commitment, and future intentions Enhanced technology of communication will influence the future purchase intention of buyer. Hypothesis 1 Satisfaction with technology-mediated communications has a direct, positive effect on future purchase intentions.

Communication can help to build trust and any impact the future intention of buyer Hypothesis 2 The effects of satisfaction with technology-mediated communications on future purchase intentions are mediated by trust. Trust or Commitment is the key element of marketers and expected long-term benefits of existing partners. Hypothesis 3 The effects of satisfaction with technology-mediated communications on future purchase intentions are mediated by trust, whose effects are in turn mediated by commitment.

Methodology A simple random sample of 226 industrial companies selected in a northwestern U.S. 106 questionnaires received. Finally, 102 were useable, giving an effective responses rate of 46% (102/226). Annual amount in Million % of total companies Below US$ 1 16 US$ 1-10 22 US$ 10-50 20 US$ 50- 500 25 Over US$500 17 79% in non-computer-related businesses

No. of person involved in Decision Marking % of total companies 1 52 2 20 More than 2 28 Seller & Buyer’s relationship % of total companies Below One year 24 1 - 4 years 41 Over 4 years 35

Independent Key Variable STMC y1 Overall, I am satisfied with the level of technological sophistication used by this supplier to communicate with me y2 This supplier’s communication technology is up to date y3 I am satisfied with the number of communication options presented by this supplier y4 This supplier’s use of technology makes it easy to communicate with them Trust y5 This supplying firm looks out for my company’s interests y6 This supplying firm respects the confidentiality of information received from us

Independent Key Variable Relationship Commitment y7 I am committed to maintaining this relationship y8 I expect that my relation with this supplier will strengthen over time y9 I am willing to put considerable effort into building this supplier relationship y10 I expect to increase business with this supplying firm in the future Future Intentions y11 I will consider purchasing from this supplying firm again y12 If asked, I would recommend this supplying firm to a friend who is not in my company

Pearson correlations

Structural Equation Models

Results of hypothesis testing H1 STMC has a positive direct effect on FI. magnitude only 0.181 H2 STMC has a positive effect on Trust but Trust effects on FI is not significance. H3 STMC on Commitment is indirect effect of STMC on FI. Conclusion STMC significant and direct effect on FI are mediated by both “Trust and Commitment”.

UPS Hong Kong Global Logistics Company Using Internet Marketing (Web-site) Enhancing Marketing Position Build up their Branding Effective two-way communication Complete back-office activities of ordering, checking ,shipping --- eliminate human error etc., Network relationships – communication and expanding relationship with current customer. Attracting new customer Comparative advantage with Competitor (DHL, Speed Post)

Capture buyer intentions Recognize level of Quality Reduce Risk Branding provide Trust and commitment Easier and simply transactions Effectively develop deeper relationships with customers. Customer Service Download the Application Form or Document Ordering, Rate calculation, Booking for Pick up service and Track your shipment

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