Unlocking B2B Purchase Engagement: Investigating Its Drivers and Consequences in App-Based Service Subscriptions for MSMEs
Downloads
Objective: This study aims to highlight the role of purchase engagement in the business-to-business (B2B) context, which is mainly under-explored due to the intricacy and diverseness of stakeholders embroiled in B2B purchasing decisions. This paper fills the gap by studying purchase engagement in the Micro, Small, and Medium Enterprises (MSMEs) B2B setting, particularly for app-based service subscriptions.
Design/Methods/Approach: The study recruited responses from 215 MSME owners and managers, current customers of a subscription-based point-of-sales (POS) service. The PLS-SEM technique empirically validated the conceptual framework and the research hypotheses.
Findings: The findings indicate that the conceptual model of customization, identification with virtual communities, and loyalty to account managers are exogenous factors influencing purchase engagement, perceived dependency, and willingness to pay for price premiums.
Originality/Value: This study aims to understand purchase engagement in B2B, focusing on transactional drivers. This framework also investigates a particular set of drivers and results from purchase engagement factors in B2B app-based service subscriptions.
Practical/Policy implication: B2B app-based service subscription stakeholders must ensure that all efforts to engage with customers strengthen their dependency on the service by starting with purchase engagement, customization, identification with virtual communities, and loyalty to account managers.
Abdul Waheed, K., & Gaur, S. S. (2012). An empirical investigation of customer dependence in interpersonal buyer"seller relationships. Asia Pacific Journal of Marketing and Logistics, 24(1), 102–124. https://doi.org/10.1108/13555851211192722
Afandy, D., Gunawan, A., Stoffers, J., Kornarius, Y. P., & Caroline, A. (2022). Improving Knowledge-Sharing Intentions: A Study in Indonesian Service Industries. Sustainability, 14(14), 8305. https://doi.org/10.3390/su14148305
Ahmad, R., Nawaz, M. R., Ishaq, M. I., Khan, M. M., & Ashraf, H. A. (2023). Social exchange theory: Systematic review and future directions. Frontiers in Psychology, 13, 1015921. https://doi.org/10.3389/fpsyg.2022.1015921
Alsaad, A., Mohamad, R., & Ismail, N. A. (2018). The contingent role of dependency in predicting the intention to adopt B2B e-commerce. Information Technology for Development, 25(4), 686-714. https://doi.org/10.1080/02681102.2018.1476830.
Alvarez-Milán, A., Felix, R., Rauschnabel, P. A., & Hinsch, C. (2018). Strategic customer engagement marketing: A decision making framework. Journal of Business Research, 92, 61–70.
Anees-ur-Rehman, M., Saraniemi, S., Ulkuniemi, P., & Hurmelinna-laukkanen, P. (2017). The strategic hybrid orientation and brand performance of B2B SMEs. Journal of Small Business and Enterprise Development, 24(3), 585–606.
Balaji, M. S. (2015). Investing in customer loyalty: The moderating role of relational characteristics. Service Business, 9(1), 17–40. https://doi.org/10.1007/s11628-013-0213-y
Bang, J., Youn, S., Rowean, J., Jennings, M., & Austin, M. (2018). Motivations for and outcomes of participating in research online communities. International Journal of Market Research, 60(3), 238–256. https://doi.org/10.1177/1470785317744110
Beckers, S. F., Doorn, J., & Verhoef, P. C. (2018). Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value. Journal of the Academy of Marketing Science, 46(3), 366–383.
Bhatia, V. (2019). Impact of fashion interest, materialism and internet addiction on e-compulsive buying behaviour of apparel. Journal of Global Fashion Marketing, 10(1), 66–80. https://doi.org/10.1080/20932685.2018.1544502
Black, H., Jeseo, V., & Vincent, L. (2021). Promoting customer engagement in service settings through identification. Journal of Services Marketing, 35(4), 473–486. https://doi.org/10.1108/JSM-06-2020-0219
Blasco-Arcas, L., Hernandez-Ortega, B., & Jimenez-Martinez, J. (2014). The online purchase as a context for co-creating experiences. Drivers of and consequences for customer behavior. Internet Research, 24(3), 393–412. https://doi.org/10.1108/IntR-02-2013-0023
Braun, C., Rehdanz, K., & Schmidt, U. (2016). Validity of Willingness to Pay Measures under Preference Uncertainty. PLOS ONE, 11(4), e0154078. https://doi.org/10.1371/journal.pone.0154078
Brodie, R. J., Fehrer, J., Jaakkola, E., Hollebeek, L., & Conduit, J. (2016). From customer to actor engagement: Exploring a broadened conceptual domain. Proceedings of the 45th European Marketing Academy Conference (EMAC, 24–27.
Cartwright, S., Davies, I., & Archer-Brown, C. (2021). Managing relationships on social media in business-to-business organisations. Journal of Business Research, 125, 120–134. https://doi.org/10.1016/j.jbusres.2020.11.028
Casidy, R., & Nyadzayo, M. (2019). Drivers and outcomes of relationship quality with professional service firms: An SME owner-manager perspective. Industrial Marketing Management, 78, 27–42.
Casidy, R., & Wymer, W. (2016). A risk worth taking: Perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price. Journal of Retailing and Consumer Services, 32, 189–197.
Chang, Y., Hou, R. J., Wang, K., Cui, A. P., & Zhang, C. B. (2020). Effects of intrinsic and extrinsic motivation on social loafing in online travel communities. Computer of Human Behavior, 109.
Chou, C. Y., & Sawang, S. (2015). Virtual Community, Purchasing Behaviour, and Emotional Well-Being. Australasian Marketing Journal, 23(3), 207–217. https://doi.org/10.1016/j.ausmj.2015.06.001
Claffey, E., & Brady, M. (2019). An empirical study of the impact of consumer emotional engagement and affective commitment in firm-hosted virtual communities. Journal of Marketing Management, 35(11–12), 1047–1079. https://doi.org/10.1080/0267257X.2019.1601125
Clark, R. A., Zboja, J., & Voorhees, C. (2012). The Role of Customer Loyalty to the Salesperson in Generating Premium Revenue for Retailers. Journal of Applied Marketing Theory, 3(1). https://doi.org/10.20429/jamt.2012.030102
Cortez, R. M., & Johnston, W. J. (2017). The future of B2B marketing theory: A historical and prospective analysis. Industrial Marketing Management, 66, 90–102.
Cui, C. C., Mrad, M., & Hogg, M. K. (2018). Brand addiction: Exploring the concept and its definition through an experiential lens. Journal of Business Research, 87, 118–127. https://doi.org/10.1016/j.jbusres.2018.02.028
De Bellis, E., Hildebrand, C., Ito, K., Herrmann, A., & Schmitt, B. (2019). Personalizing the Customization Experience: A Matching Theory of Mass Customization Interfaces and Cultural Information Processing. Journal of Marketing Research, 56(6), 1050–1065. https://doi.org/10.1177/0022243719867698
De Waal, A., & Van Der Heijden, B. (2016). Increasing customer loyalty and customer intimacy by improving the behavior of employees. Journal of Strategy and Management, 9(4), 492–510. https://doi.org/10.1108/JSMA-06-2015-0045
Eskiler, E., & Altunışık, R. (2021). The Moderating Effect of Involvement in the Relationship Between Customer Behavioral Intentions and Its Antecedents. SAGE Open, 11(2), 215824402110144. https://doi.org/10.1177/21582440211014495
Fatima, J. K., & Di Mascio, R. (2018). Reversing the dependency-trust relationship in B2C services. Journal of Retailing and Consumer Services, 41, 1–10. https://doi.org/10.1016/j.jretconser.2017.11.005
Fehrer, J. A., Woratschek, H., Germelmann, C. C., & Brodie, R. J. (2018). Dynamics and drivers of customer engagement: Within the dyad and beyond. Journal of Service Management, 29(3), 443–467.
Fernandes, T., & Pinto, T. (2019). Relationship quality determinants and outcomes in retail banking services: The role of customer experience. Journal of Retailing and Consumer Services, 50, 30–41. https://doi.org/10.1016/j.jretconser.2019.01.018
Fleming, D., Lynch, P., & Kelliher, F. (2016). The process of evaluating business-to-business relationships facing dissolution: An SME owner manager perspective. Industrial Marketing Management, 58(1), 83–93.
Gallup. (2016). Guide to customer centricity: Analytics and advice for B2B leaders.
Grönroos, C., & Helle, P. (2012). Return on relationships: Conceptual understanding and measurement of mutual gains from relational business engagements. The Journal of Business and Industrial Marketing, 27(5), 344–359.
Hair, J., Jr., Hult, G. T., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM. SAGE Publications, Inc.
Hair Jr., J., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling. Sage Publications.
Harmeling, C. M., Moffett, J. W., Arnold, M. J., & Carlson, B. D. (2017). Toward a theory of customer engagement marketing. Journal of the Academy of Marketing Science, 45(3), 312–335.
Hauff, J. C. (2019). Reasons to switch: Empowered vs less powerful bank customers. International Journal of Bank Marketing, 37(6), 1441–1461. https://doi.org/10.1108/IJBM-08-2018-0231
Heirati, N., Henneberg, S. C., Richter, A., & Harste, R. (2019). Differential importance of social and economic determinants of relationship performance in professional services. Industrial Marketing Management, 76, 23–35.
Hinterhuber, A., & Quancard, B. (2019). Farewell to the pricing manager: New ecosystem captains drive profits via pricing. Journal of Business Strategy, 40(4), 18–27. https://doi.org/10.1108/JBS-04-2019-0066
Hollebeek, L. D. (2016). Exploring customer engagement: A multi-stakeholder perspective. In R. J. Brodie, L. D. Hollebeek, & J. Conduit (Eds.), Customer engagement: Contemporary issues and challenges (pp. 67–82). Routledge.
Hollebeek, L. D., Sprott, D. E., Andreassen, T. W., Costley, C., Klaus, P., Kuppelwieser, V., Karahasanovic, A., Taguchi, T., Ul Islam, J., & Rather, R. A. (2019). Customer engagement in evolving technological environments: Synopsis and guiding propositions. European Journal of Marketing, 53(9), 2018–2023. https://doi.org/10.1108/EJM-09-2019-970
Horng, S. M., & Wu, C. L. (2020). How behaviors on social network sites and online social capital influence social commerce intentions. Information & Management, 57.
Ismagilova, E., Rana, N. P., Slade, E. L., & Dwivedi, Y. K. (2021). A meta-analysis of the factors affecting eWOM providing behaviour. European Journal of Marketing, 55(4), 1067–1102. https://doi.org/10.1108/EJM-07-2018-0472
Itani, O. S., El Haddad, R., & Kalra, A. (2020). Exploring the role of extrovert-introvert customers' personality prototype as a driver of customer engagement: Does relationship duration matter? Journal of Retailing and Consumer Services, 53, 101980. https://doi.org/10.1016/j.jretconser.2019.101980
Itani, O. S., Krush, M. T., Agnihotri, R., & Trainor, K. J. (2020). Social media and customer relationship management technologies: Influencing buyer-seller information exchanges. Industrial Marketing Management, 90, 264–275. https://doi.org/10.1016/j.indmarman.2020.07.015
Jaakkola, E., & Aarikka-Stenroos, L. (2019). Customer referencing as business actor engagement behavior–creating value in and beyond triadic settings. Industrial Marketing Management, 80, 27–42.
Jaakkola, E., & Alexander, M. (2014). The role of customer engagement behavior in value co-creation from a service system perspective. Journal of Service Research, 17(3), 247–261.
Johnsen, R. E., & Lacoste, S. (2016). An exploration of the ‘dark side' associations of conflict, power and dependence in customer–supplier relationships. Industrial Marketing Management, 59, 76–95. https://doi.org/10.1016/j.indmarman.2015.12.011
Kim, H., Lee, Y., & Park, K. (2018). The Psychology of Queuing for Self-Service: Reciprocity and Social Pressure. Administrative Sciences, 8(4), 75. https://doi.org/10.3390/admsci8040075
Kim, Y. S., & Hong, Y. (2019). A systematic method to design product-service systems using personalisation services based on experience evaluations. International Journal of Product Development, 23(4), 353. https://doi.org/10.1504/IJPD.2019.105491
Kingshott, R. P. J., Sharma, P., & Nair, S. R. (2020). Social and technical chains-of-effects in business-to-business (B2B) service relationships. European Journal of Marketing, 54(6), 1225–1246. https://doi.org/10.1108/EJM-04-2019-0329
Kleinaltenkamp, M., Minculescu, I., & Raithel, S. (2017). Customization of B2B Services: Measurement and Impact on Firm Performance. Journal of Service Management Research, 1, 39–56.
Klesse, A.-K., Cornil, Y., Dahl, D. W., & Gros, N. (2019). The Secret Ingredient Is Me: Customization Prompts Self-Image-Consistent Product Perceptions. Journal of Marketing Research, 56(5), 879–893. https://doi.org/10.1177/0022243719846063
Kozinets, R. V. (1999). E-tribalized marketing?: The strategic implications of virtual communities of consumption. European Management Journal, 17(3), 252–264. https://doi.org/10.1016/S0263-2373(99)00004-3
Kumar, V., & Pansari, A. (2016). Competitive advantage through engagement. Journal of Marketing Research, 53(4), 497–514.
Kurniawati, E., & Setiawan, A. (2019). The Role of Indonesian Micro, Small, and Medium Enterprises Owners in Choosing e-Commerce Strategy in the Global Market. Proceedings of the 1st International Conference on Social Knowledge Sciences and Education (ICSKSE 2018). Proceedings of the 1st International Conference on Social Knowledge Sciences and Education (ICSKSE 2018), Batu, Indonesia. https://doi.org/10.2991/icskse-18.2019.37
Levin, E., Thaichon, P., & Quach, T. N. (2016). The impact of creative competence and project management on longevity of the client-advertising agency relationship. The Journal of Business and Industrial Marketing, 31(2), 274–286.
Liao, J., Dong, X., & Guo, Y. (2020). Examining knowledge contribution in firm- versus consumer-hosted virtual brand community. Electronic Commerce Research and Applications, 41, 100963. https://doi.org/10.1016/j.elerap.2020.100963
Lilien, G. L. (2016). The B2B knowledge gap. International Journal of Research in Marketing, 33(3), 543–556. https://doi.org/10.1016/j.ijresmar.2016.01.003
Liu, Y.-H. S., Deligonul, S., Cavusgil, E., & Chiou, J.-S. (2018). Always trust in old friends? Effects of reciprocity in bilateral asset specificity on trust in international B2B partnerships. Journal of Business Research, 90, 171–185. https://doi.org/10.1016/j.jbusres.2018.05.012
Lizzo, R., & Liechty, T. (2022). The Hogwarts Running Club and Sense of Community: A Netnography of a Virtual Community. Leisure Sciences, 44(7), 959–976. https://doi.org/10.1080/01490400.2020.1755751
Luo, J., Tóth, Z., Liu, M. J., & Yuan, R. (2021). Social media-related tensions on business-to-business markets – Evidence from China. Industrial Marketing Management, 93, 293–306. https://doi.org/10.1016/j.indmarman.2020.12.015
Lyu, J., & Kim, J. (2020). Antecedents of Social Media–Induced Retail Commerce Activities: Impact of Brand–Consumer Relationships and Psychological Sense of Community. Journal of Interactive Advertising, 20(2), 119–132. https://doi.org/10.1080/15252019.2020.1769513
Mäntymäki, M., Islam, A. K. M. N., & Benbasat, I. (2020). What drives subscribing to premium in freemium services? A consumer value"based view of differences between upgrading to and staying with premium. Information Systems Journal, 30(2), 295–333. https://doi.org/10.1111/isj.12262
Marcos-Cuevas, J., Nätti, S., Palo, T., & Baumann, J. (2016). Value co-creation practices and capabilities: Sustained purposeful engagement across B2B systems. Industrial Marketing Management, 56, 97–107.
Martínez-López, F. J., Anaya-Sánchez, R., Molinillo, S., Aguilar-Illescas, R., & Esteban-Millat, I. (2017). Consumer engagement in an online brand community. Electronic Commerce Research Application, 23, 24–37.
Meek, S., Ryan, M., Lambert, C., & Ogilvie, M. (2019). A multidimensional scale for measuring online brand community social capital (OBCSC. Journal of Business Research, 100, 234–244.
Mohan, M., Nyadzayo, M. W., & Casidy, R. (2021). Customer identification: The missing link between relationship quality and supplier performance. Industrial Marketing Management, 97, 220–232. https://doi.org/10.1016/j.indmarman.2021.07.012
Moreau, C. P., Prandelli, E., Schreier, M., & Hieke, S. (2020). Customization in Luxury Brands: Can Valentino Get Personal? Journal of Marketing Research, 57(5), 937–947. https://doi.org/10.1177/0022243720943191
Nguyen, T., Sun, Q., & Ganesh, G. (2019). Exploring the role of decision-making factors in international student marketing engagement. Journal of Marketing for Higher Education, 29(2), 230–250. https://doi.org/10.1080/08841241.2019.1638483
Nitzl, C., Roldán, J. L., & Cepeda, C. G. (2016). Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisticated models. Industrial Management and Data Systems, 119(9), 1849–1864.
Nyadzayo, M. W., Casidy, R., & Thaichon, P. (2020). B2B purchase engagement: Examining the key drivers and outcomes in professional services. Industrial Marketing Management, 85, 197–208.
Nyffenegger, B., Krohmer, H., Hoyer, W. D., & Malaer, L. (2015). Service brand relationship quality hot or cold? Journal of Service Research, 18(1), 90–106.
Obeng, E. A., & Aguilar, F. X. (2018). Value orientation and payment for ecosystem services: Perceived detrimental consequences lead to willingness-to-pay for ecosystem services. Journal of Environmental Management, 206, 458–471. https://doi.org/10.1016/j.jenvman.2017.10.059
Ostrowski, S. (2021). Commitment Ladder in the Relationship between Service Providers and Customers as Added Value in Sustainable Services Development. Sustainability, 13(9), 5079. https://doi.org/10.3390/su13095079
Palmer, A., & Bejou, D. (2016). Retrospective: Service failure and loyalty: an exploratory empirical study of airline customers. Journal of Services Marketing, 30(5), 480–484. https://doi.org/10.1108/JSM-04-2016-0137
Pamacheche, R., & Duh, H. I. (2021). Personal-loyalty and pricing benefits from hairstylist-client commercial friendship. Journal of Research in Marketing and Entrepreneurship, 23(2), 235–250. https://doi.org/10.1108/JRME-03-2020-0026
Pansari, A., & Kumar, V. (2017). Customer engagement: The construct, antecedents, and consequences. Journal of the Academy of Marketing Science, 45(3), 294–311.
Pardo, C., Ivens, B. S., & Niersbach, B. (2020). An identity perspective of key account managers as paradoxical relationship managers. Industrial Marketing Management, 89, 355–372. https://doi.org/10.1016/j.indmarman.2019.10.008
Peters, L., Ivens, B. S., & Pardo, C. (2020). Identification as a challenge in key account management: Conceptual foundations and a qualitative study. Industrial Marketing Management, 90, 300–313. https://doi.org/10.1016/j.indmarman.2020.07.020
Porter, C. E., Donthu, N., MacElroy, W. H., & Wydra, D. (2011). How to Foster and Sustain Engagement in Virtual Communities. California Management Review, 53(4), 80–110. https://doi.org/10.1525/cmr.2011.53.4.80
Prentice, C., Han, X., Hua, L., & Hu, L. (2019). The influence of identity-driven customer engagement on purchase intention. Journal of Retailing and Consumer Services, 47(March), 339–347. https://doi.org/10.1016/J.JRETCONSER.2018.12.014
Reijonen, H., Hirvonen, S., Nagy, G., Laukkanen, T., & Gabrielsson, M. (2015). The impact of entrepreneurial orientation on B2B branding and business growth in emerging markets. Industrial Marketing Management, 51, 35–46.
Saha, L., Tripathy, H. K., Nayak, S. R., Bhoi, A. K., & Barsocchi, P. (2021). Amalgamation of Customer Relationship Management and Data Analytics in Different Business Sectors”A Systematic Literature Review. Sustainability, 13(9), 5279. https://doi.org/10.3390/su13095279
Salehudin, I., & Alpert, F. (2022a). Perceived aggressive monetization: Why some mobile gamers won't spend any money on in-app purchases. Electronic Commerce Research. https://doi.org/10.1007/s10660-022-09603-2
Salehudin, I., & Alpert, F. (2022b). To pay or not to pay: Understanding mobile game app users' unwillingness to pay for in-app purchases. Journal of Research in Interactive Marketing, 16(4), 633–647. https://doi.org/10.1108/JRIM-02-2021-0053.
Scheer, L. K., Miao, C. F., & Palmatier, R. W. (2015). Dependence and interdependence in marketing relationships: Meta-analytic insights. Journal of the Academy of Marketing Science, 43(6), 694–712. https://doi.org/10.1007/s11747-014-0418-1
Souissi, Y., Salhi, B., & Jarboui, A. (2020). The CEO's emotional bias and the delegation of decision-making rights. International Journal of Law and Management, 62(5), 427–452. https://doi.org/10.1108/IJLMA-04-2018-0065
Storbacka, K., Brodie, R. J., Böhmann, T., Maglio, P. P., & Nenonen, S. (2016). Actor engagement as a microfoundation for value co-creation. Journal of Business Research, 69(8), 3008–3017.
Subramony, M., & Pugh, S. D. (2015). Services Management Research: Review, Integration, and Future Directions. Journal of Management, 41(1), 349–373. https://doi.org/10.1177/0149206314557158
Tu, Y., Neuhofer, B., & Viglia, G. (2018). When co-creation pays: Stimulating engagement to increase revenues. International Journal of Contemporary Hospitality Management, 30(4), 2093–2111. https://doi.org/10.1108/IJCHM-09-2016-0494
Venkatesan, R. (2017). Executing a customer engagement strategy. Journal of the Academy of Marketing Science, 45(3), 289–293.
Viio, P., & Grönroos, C. (2016). How buyer-seller relationship orientation affects adaptation of sales processes to the buying process. Industrial Marketing Management, 52, 37–46.
Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer engagement: Exploring customer relationships beyond purchase. Journal of Marketing Theory and Practice, 20(2), 122–146.
Wang, Y., Gu, J., Wang, S., & Wang, J. (2019). Understanding consumers' willingness to use ride-sharing services: The roles of perceived value and perceived risk. Transportation Research Part C: Emerging Technologies, 105, 504–519. https://doi.org/10.1016/j.trc.2019.05.044
Wilson, H. N. (2019). Collective engagement: Four thought-shackles and how to escape them. Industrial Marketing Management, 80, 24–26. https://doi.org/10.1016/j.indmarman.2019.04.008
Woisetschläger, D. M., Hartleb, V., & Blut, M. (2008). How to Make Brand Communities Work: Antecedents and Consequences of Consumer Participation. Journal of Relationship Marketing, 7(3), 237–256. https://doi.org/10.1080/15332660802409605.
Yao, T., Qiu, Q., & Wei, Y. (2019). Retaining hotel employees as internal customers: Effect of organizational commitment on attitudinal and behavioral loyalty of employees. International Journal of Hospitality Management, 76, 1–8. https://doi.org/10.1016/j.ijhm.2018.03.018
Zhang, Y., Lu, B., & Zheng, H. (2020). Can buzzing bring business? Social interactions, network centrality and sales performance: An empirical study on business-to-business communities. Journal of Business Research, 112, 170–189. https://doi.org/10.1016/j.jbusres.2020.02.034
Zhang, Y., Xiao, C., & Zhou, G. (2020). Willingness to pay a price premium for energy-saving appliances: Role of perceived value and energy efficiency labeling. Journal of Cleaner Production, 242, 118555. https://doi.org/10.1016/j.jclepro.2019.118555
Zhang, Z., & Li, W. (2022). Customer Engagement Around Cultural and Creative Products: The Role of Social Identity. Frontiers in Psychology, 13, 874851. https://doi.org/10.3389/fpsyg.2022.874851
Copyright (c) 2024 Faisal Arief, Imam Salehudin
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. The author(s) hold the copyright of the article without restrictions.
2. The author(s) retain publishing rights without restrictions
3. The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution (CC BY).
