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Project Customization and the Supplier Revenue-Cost Dilemmas: The Critical Roles of Supplier-Customer Coordination

Title
Project Customization and the Supplier Revenue-Cost Dilemmas: The Critical Roles of Supplier-Customer Coordination
Authors
Wang, YongguiLee, JongkukFang, Er (Eric)Ma, Shuang
Ewha Authors
이종국
SCOPUS Author ID
이종국scopus
Issue Date
2017
Journal Title
JOURNAL OF MARKETING
ISSN
0022-2429JCR Link1547-7185JCR Link
Citation
vol. 81, no. 1, pp. 136 - 154
Keywords
customizationproject revenues-costscustomer participationdemand ambiguityrelational embeddedness
Publisher
AMER MARKETING ASSOC
Indexed
SSCI; SCOPUS WOS
Abstract
This study examines customization as a coordination problem in transactions with business customers. Marketing research has investigated challenges associated with customized offers from the customer side; however, scant research has examined the supplier's challenges and their performance implications. The authors distinguish between project revenues and costs to reveal a fundamental dilemma that suppliers face during customization. Analyses of dyadic survey data collected from a software supplier and its business customers, as well as objective revenue and cost data, reveal a tension between project revenues and costs. The outcomes of customization depend on factors that relieve the coordination problem, such as customer demand ambiguity, customer participation, product modularity, project teamtechnological capability, and relational embeddedness. These findings provide a basis to assess the value of customization as a tool to implement a customer-oriented business-to-business marketing strategy.
DOI
10.1509/jm.15.0300
Appears in Collections:
경영대학 > 경영학전공 > Journal papers
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