Geographic Scope Effects on Buyer Satisfaction and Defection

Julie Johnson-Busbin, James Boles, Rutherford Brian, Hiram Barksdale Jr

Abstract


As organizations move away from their domestic borders and into international environments, selling firms should understand the role geographic scope plays for the buying organization in determining whether buyers want to continue purchasing a product or service.  This study addresses differences in geographic scope of buying firms as they relate to satisfaction and intention to remain in the relationship.  Our findings suggest firms that are international in scope place a stronger emphasis on being satisfied with the selling firm and the salesperson of that firm when considering continuing to stay in the relationship than firms that have only a national geographic scope.  Additionally, our findings indicate that organizations that are international in scope place a greater importance on satisfaction with their salesperson when deciding whether to stay in the relationship than firms with a regional scope.  As organizations move away from their domesticborders and into international environments, sellingfirms should understand the role geographic scope playsfor the buying organization in determining whether buyerswant to continue purchasing a product or service. This studyaddresses differences in geographic scope of buying firms asthey relate to satisfaction and intention to remain in therelationship. Our findings suggest firms that are internationalin scope place a stronger emphasis on being satisfied with theselling firm and the salesperson of that firm when consideringcontinuing to stay in the relationship than firms that have onlya national geographic scope. Additionally, our findings indicatethat organizations that are international in scope place agreater importance on satisfaction with their salespersonwhen deciding whether to stay in the relationship than firmswith a regional scope.

Keywords


Buyer defection; Customer Satisfaction; Global Scope

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