A study on importance of Relationship value with respect to

B2B

Abstract

Purpose- The purpose of this study is to understand the relationship value importance with
respect to B2B businesses. Different variables with respect to relationship value are defined and
related to one another. In this study we explore the relationship of manufacturing companies with
regards to their main suppliers.

Methodology- After the theoretical framework of the study, Empirical analysis consisting of
quantitative data with the help of questionnaire will be developed.

Research design Empirical analysis

Research method Survey

Research technique Questionnaire

Data collection Manufacturing companies in Bangalore

No. of samples 25

Sampling plan Random sampling

INTRODUCTION

Business to business, also called B to B or B2B, is a type of transaction that exists between
businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer.
Business to business refers to business that is conducted between companies, rather than between
a company and individual consumers. A typical supply chain involves multiple business to
business transactions, as companies purchase components and products such as other raw
materials for use in the manufacturing processes. Finished products can then be sold to individuals
via business to consumer transactions.

Business to business transactions require planning to be successful. Such transactions rely on a

companys account management personnel to establish business client relationships. Business to
business relationships also must be nurtured, typically through professional interactions prior to
sales, for successful transactions to take place. Traditional marketing practices also help businesses
connect with business clients. A businesss presence at conferences and trade shows also builds
awareness of the products and services it provides to other businesses.

Objectives

To bring out the importance of relationship between the buyers and suppliers.
To Understand how relationship value, trust, commitment, satisfaction and loyalty are
defined and relate to each other

Scope

Variables such as value, trust, commitment, satisfactions and loyalty play very important role in
the B2C segment. But not much importance is given to these elements with respect to the B2B
segment. This study focuses on the importance of relationship value between the buyers and
suppliers.
Literature Review
Vargo and Lusch (2004) say that the marketing thought is shifting away from tangibles towards
intangibles, and from a transaction focus to a relationship focus. It is not only tangible products
that are being marketed. Even the services are being marketed. And these days more focus is being
given to building relationships than just dealing with transactions. (Eggert et al., 2006) mentions
that it is important both from the customers and the suppliers point of view to know how to create
and deliver value in the relationship, particularly as the product itself may end up becoming a
commodity. Payne and Holt (2001) point out, new conceptual developments and studies are
required to identify structures underpinning relationship value. Ulaga and Eggert (2006) mention
that relationship value must be included as a key element in models that analyze the buyer-seller
relationship in the industrial context. The most recent developments in the paper of customer
value have adopted a relational perspective and take a relationship marketing approach (Walter et
al., 2001; Eggert et al., 2006).This has been described as relationship value (Payne and Holt,
2001; Ulaga, 2003).

Conclusion

In the study we will be able to understand how much importance is given to each variable and also
to the combination of variables such as trust, commitment, satisfaction, loyalty etc., we will be
able to understand which combination of above variable plays the most crucial role in the success
of a B2b business.