Doctoral Dissertations

Date of Award

5-1998

Degree Type

Dissertation

Degree Name

Doctor of Philosophy

Major

Business Administration

Major Professor

Robert B. Woodruff

Committee Members

John T. Mantzer, Sarah Fisher Gardial, David W. Schumann, Eric Haley

Abstract

This study investigated the nature and processes of changes in customers' desired value from suppliers in order to assist suppliers in anticipating what their manufacturing customers might want in the future. Twenty-two depth interviews were conducted with purchasing-related professionals in nine manufacturing companies within the U.S. automobile industry. Grounded theory guidelines were followed for data collection and interpretive analyses. Findings show that change in customer's desired value contains five dimensions (i.e., level, form, rate, magnitude, volatility). Findings also show that customer desired value changes within a process, depicted by a customer desired value change model. This model describes customer desired value as emerging from customers' attempts to reduce tension driven by a number of forces in their environments. While engaged in three tension reduction strategies (i.e., trying to facilitate learning, trying to improve, trying to extend control), customers altered their desires from suppliers. In order to obtain altered desired value, customers engaged in four additional strategies (i.e., locating, building relationships, motivating, coordinating). Findings demonstrate that change in customers' desired value can be anticipated. The developed theory can be used by suppliers as a diagnostic tool to understand their customers more deeply, enabling changes to be anticipated, acted upon, or influenced.

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