Antecedents of Preferred Customer Status - In the context of the Automotive Industry

Abstract: Resources in any form are inherently scarce, which could be intensified further by global events or the maturity of the associated markets. In such situations, suppliers are faced with the decision on how to allocate resources to their buyers. Thus, buyers who can achieve and maintain the position as preferred customers a have higher chance of being successful in their field. This study, therefore, aimed to explore and scientifically demonstrate which factors or so-called antecedents lead to suppliers grant the preferred customer to a certain buyer. Quantitative analysis performed on 166 responses collected by online survey revealed the important role of growth opportunity, supplier dependency, supplier satisfaction, and cultural compatibility in directly influencing the preferred customer status given by a supplier to its buyer, while other actions or characteristics of buyers still can indirectly increase the chance of this status being awarded.