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Customer satisfaction in a Transnational Buyer-Seller relationship Introduction There are two important antecedents of customer satisfaction in relationship between the buyer and the seller. Marketing manager has to invest resources into quality & flexibility. Marketing managers must realize that information sharing does not directly contribute to customer satisfaction but it contributes a great deal towards achieving higher performance in quality and flexibility. While it has been noted that international buyer-seller relationship is at a significant disadvantage when compared to domestic buyer-seller relationship. Maintaining a high level of customer satisfaction level therefore poses a significant challenge to marketing managers. This disadvantage can be overcome by having superior quality and flexibility by the seller. Challenges Marketing managers may find it difficult in exhibiting flexibility when there is large geographic distance between business partners. Maintaining superior quality also poses a challenge in a transnational relationship. This is quite counter-intuitive as there is no reason why quality assessment should be lower for international suppliers. However in a detailed study by several universities has showed that the perception of quality varies in different countries and cultures. There are different ways of using a product in different countries and people have different aesthetical perceptions which lead to different perceptions to quality. For example, people in Asia use cell phones for messaging, financial transactions, gaming and for conversations, while in US, cell phones are mainly used for conversation. It is therefore important for marketing managers to understand the different notions of quality for the same product. Similarly perceived openness in information sharing is influenced by different communication styles in different countries. For example, Germans are more formal in information sharing than the Americans. Chinese share information only when asked for it. Brazilians are quite open in sharing information. Therefore understanding the differences in communication style is very important for international marketing mangers. Customer Satisfaction In general customer satisfaction is achieved when the supplied product or service meets or exceeds customer's expectations. In a business-to-business environment customer satisfaction is also based on power and dependence relationship between buyer & seller. In this context, the use of seller/buyer power in a conflict leads to customer satisfaction or dissatisfaction. The perception of fairness, profitability, and salesmen's skills and behavior are important determinants of customer satisfaction. In a industrial business-to-business relationship, customer satisfaction is affected by coordination, commitment, trust, communication quality, information sharing, participation in joint problem solving. In addition, customer satisfaction also depends on financial considerations, social interactions, cooperative advertising and other cross promotional activities. Social relationships and open communication have a strong impact on customer satisfaction. Relational norms, buyer power, communication process are major antecedents which has positive impact on customer satisfaction. Customer satisfaction in an International context In a transnational business to business relationship, several conditions make exchange processes difficult. The most important factor which adversely affect customer relationship is cultural differences, which leads to communication problems and emotional distance. Hofstede's study on cultural dimensions and its impact provides an invaluable insight of the impact of cultural differences on business. International buyer-seller relationship also involve communication problems. Apart from different languages, transnational business relationship must face a different verbal and non-verbal communication behavior. In addition channels for transnational business communication is less prevalent than a purely domestic one. In addition to cultural and communication problems, transnational business relationship involve coping with technological and geographical distances. If technological standards and specifications in different countries are different (technological distance), the buyer must become acquainted with other standards when collaborating with a foreign supplier. Geographical distance hinders communication and decreases the possibilities to foster a social relationship. In international context customer satisfaction in a buyer-seller relationship is based on three factors:
"Perceived quality has a positive impact on customer satisfaction" It has been observed that the perceived quality, flexibility and information sharing is slightly lower by the buyer in an international context than in a purely domestic relationship. Therefore, to improve customer satisfaction, marketing managers need to understand the buyer's perceptions. Perceived quality refers to the buyer's evaluation of the product or service. When all things are equal, higher quality creates higher value to the customer. Higher quality lowers cost to the buyer through lesser rework, and the need for quality control. In general high quality of product/service reduces uncertainty for the buying firm, which can result in higher consistency, lower controls and lower inventory. "Perceived flexibility has a positive impact on customer satisfaction" It must be noted that customer satisfaction not only depends on the product or service but also on the experience surrounding the purchase. The non-product dimensions of the exchange are important for the formation of customer satisfaction. For a buying firm, both flexibility and information sharing is critical for its overall satisfaction Perceived flexibility is the extent to which the supplier is willing to make changes to accommodate the customer's changing and unforeseen needs. It is particularly valued in case of unforeseen or short term changes in the needs of the customer. Suppliers displaying flexibility make quick responses to the buyer's needs. Such behavior suggests a willingness to modify the procedure or process or policies to help a customer. Supplier flexibility is particularly valued when the buyer firm make errors and require special concession from the supplier. Being flexible demonstrate a general readiness to respond to customer's needs. "Perceived information sharing has a positive impact on customer satisfaction" Perceived information sharing refers to the extent to which the buying firm perceives the seller to share information which is useful to the customer openly. The open sharing of information helps reduce uncertainty by allowing customers insights into the supplier's future plans. For example, early information about changes in supplier's future products enables buyer to make timely changes in operational procedures, thus avoiding costly crash programs. Furthermore knowledge provided by the seller can enable the customer to make better use of the product/service purchased, which lowers cost in increases benefits. In addition exchange of information sets stage for closer cooperation. Intensive communication is also a prerequisite for building trust, which in turn positively affects customer satisfaction. Conclusion In a transnational buyer-seller relationship, customer satisfaction is dependent on several factors other that the product/service itself. To overcome the challenges posed by the differences in culture, communication styles and geographic distances on customer satisfaction, marketing managers must clearly understand what is the perceived quality, perceived flexibility and perceived openness in information sharing. Once this is understood, marketing manager can work to create complete customer satisfaction.
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