UUProblem Members of the Singapore Heavy Equipment Spare Parts Industry face a multitude of challenges in developing their pricing strategy and practice, and in establishing, developing, and maintaining successful relational exchanges. They are unable to obtain any guidance from the pricing or relationship marketing literature. These works are either too complex or too general to be of any use to industry members. Consequently, much of industry strategy and practice occurs without the benefit of theory. UUThe Method An extensive review of existing literature was conducted in the major subject areas of pricing and relationship marketing. Literature on other subjects of channels, marketing mix, strategy, value, commitment, trust, cooperation, and satisfaction were also reviewed. A survey instrument was developed and field research was administered to 35 channel members of the industry. The results were analysed using SPSS 11. The results were used to construct a model of the role of pricing in relationship marketing. The model was constructed using Factor Analysis, Correlation Analysis and Regression Analysis. UUThe Findings The findings are all based on the perception of the channel members. Nine factors were extracted. These non-trivial factors to the Singapore Heavy Equipment Spare Parts Industry are: - Downstream supply considerations; - Product/Stock allocations; - Price gap resolution; - Perception of value/profitability; - Business volume; - Intermediate business relationships; - Leads and referrals; - Favourable pricing; and - Long-run relationships. At 5% significance (2-tailed), 4 construct paths were supported. These are: - Support gap correlates with actual price; - Support gap correlates with value; - Support gap correlates with price gap; and - Price gap correlates with value. At 5% significance (2-tailed), 8 hypotheses were supported. These are: - Price gap resolution correlates with commitment; - Price gap resolution correlates with cooperation; - Price gap resolution correlates with satisfaction; - Importance of constructive acts correlates with improved business volume; - Expression of intention to increase business correlates with increased business; - Importance of value correlates with increased business; - Value (through profitability) correlates with increased business; and - Importance of value correlates with improvements in: - Trust; - Commitment; - Cooperation; - Satisfaction; and - Increased business. UUConclusion Pricing has a profound and multi-faceted role in relationship marketing. It is a powerful tool. It has a role as a market tool with new relationships, as a development tool in the growth phase of relationships, and as a control tool in the mature phase of bilateral relationships between first and second echelon distributors. The study recommended that channel members utilise this tool concept and the management of value, price, and support gap in relational exchanges. / thesis (PhDBusinessandManagement)--University of South Australia, 2003.
| Identifer | oai:union.ndltd.org:ADTP/173383 |
| Date | January 2003 |
| Creators | Chong, Kum Whye |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | Copyright Chong Kum Whye 2003 |
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