Customer attractiveness: A comparative analysis of startups versus incumbents in supplier choice

Juliano Afonso Tessaro; Rainer Harms; Holger Schiele

doi:10.1016/j.pursup.2024.100901

Customer attractiveness: A comparative analysis of startups versus incumbents in supplier choice

Juliano Afonso Tessaro^*, Rainer Harms, Holger Schiele

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

1 Citation (Scopus)

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Abstract

Startups compete against incumbents for supplier resources. In this competition, startups suffer from the liability of newness and lack a track record and positive reputation. Startups that want to mobilize supplier resources need to become attractive to suppliers. This research analyzes the factors impacting startup attractiveness as buyers. Our findings from a discrete choice experiment with 129 salespeople show that startups are less attractive as customers than incumbents. We found eight factors that impact customer attractiveness. We compared the relative importance of customer attractiveness factors. We discovered that strategic compatibility, operative excellence, and innovation positively impact startups more than incumbents’ attractiveness.

Original language	English
Article number	100901
Journal	Journal of purchasing and supply management
Volume	30
Issue number	2
Early online date	12 Feb 2024
DOIs	https://doi.org/10.1016/j.pursup.2024.100901
Publication status	Published - Mar 2024

Keywords

UT-Hybrid-D
Discrete choice experiment (DCE)
Startups
The liability of newness
Customer attractiveness

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10.1016/j.pursup.2024.100901Licence: CC BY

1-s2.0-S1478409224000074-mainFinal published version, 1.79 MBLicence: CC BY

Cite this

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title = "Customer attractiveness: A comparative analysis of startups versus incumbents in supplier choice",

abstract = "Startups compete against incumbents for supplier resources. In this competition, startups suffer from the liability of newness and lack a track record and positive reputation. Startups that want to mobilize supplier resources need to become attractive to suppliers. This research analyzes the factors impacting startup attractiveness as buyers. Our findings from a discrete choice experiment with 129 salespeople show that startups are less attractive as customers than incumbents. We found eight factors that impact customer attractiveness. We compared the relative importance of customer attractiveness factors. We discovered that strategic compatibility, operative excellence, and innovation positively impact startups more than incumbents{\textquoteright} attractiveness.",

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AB - Startups compete against incumbents for supplier resources. In this competition, startups suffer from the liability of newness and lack a track record and positive reputation. Startups that want to mobilize supplier resources need to become attractive to suppliers. This research analyzes the factors impacting startup attractiveness as buyers. Our findings from a discrete choice experiment with 129 salespeople show that startups are less attractive as customers than incumbents. We found eight factors that impact customer attractiveness. We compared the relative importance of customer attractiveness factors. We discovered that strategic compatibility, operative excellence, and innovation positively impact startups more than incumbents’ attractiveness.

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Customer attractiveness: A comparative analysis of startups versus incumbents in supplier choice

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