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    DOI 10.1007/s12087-007-0018-1

    Abstract In the past, product quality and relationships were the main concepts for a dif-

    ferentiation strategy in b-to-b markets. Currently, the brand is discussed as an additional

    concept in the b-to-b sector. In the past, the literature mostly analysed these marketing

    concepts in an isolated way. This paper presents for the b-to-b sector a new marketing

    quality model (MARKET-Q) which integrates product quality, relationship quality, and

    brand quality in a single framework. Furthermore, the results of empirical tests of this

    model are presented in this paper. A main study and two replications clarify the general

    procedure and the validity of the model. Additionally, the empirical studies underpin thehigh relevance of brands in the b-to-b sector.

    Keywords marketing quality strategic orientations product quality relationship

    quality brand quality, PLS

    Introduction

    Caterpillar is one of the worlds leading manufacturers of construction and mining equip-ment, diesel and natural gas engines and industrial gas turbines. A rst success factor of

    this b-to-b company is the high product quality. As an example, Caterpillar has introduced

    over 3,700 patents since 1997. The close and trusting personal relationship between Cat-

    erpillar and its customers is a second success factor. For example, Caterpillar has a dealer

    network in 200 countries and rental services are offered through more than 1,500 outlets

    (www.cat.com). Finally, the Caterpillar brand is the third main success factor. Caterpillar

    Integrated Model of Marketing Quality (MARKET-Q)in the B-to-B Sector

    Carsten Baumgarth

    Gabler Verlag 2008

    C. Baumgarth ()

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    is one of the strongest brands worldwide. In the current ranking Interbrands Best Global

    Brands Caterpillar achieves rank 70 with a brand equity of around $ 4 billion (Berner

    and Kiley 2005).

    This success story shows that a b-to-b company can choose different strategic ap-

    proaches for gaining a competitive advantage. Apart from cost and price advantages themanufacturer can offer quality advantages (e. g., Porter 1980). This quality advantage

    could be based on three different concepts: outstanding product quality, good personal

    customer relationships and a strong brand.

    The rst option outstanding product quality is connected with the psychological

    construct of customer satisfaction. This construct has a long tradition in the b-to-b area

    (Sharma, Niedrich, and Dobbins 1999). Numerous studies have proved a relationship be-

    tween customer satisfaction and market performance (Rust and Zahorik 1993, Anderson,

    Fornell, and Lehmann 1994).

    Since the nineties with relationship management and the construct of relationship qual-ity a second marketing concept for the explanation of market performance has moved into

    the centre of scientic and practical interest. Numerous works in the b-to-b area have

    analysed the relationship quality and its inuence on market success (Han, Wilson, and

    Dant 1993, Parsons 2002).

    In the current b-to-b discussion, the interest in the new topic brand management is

    increasing (Malaval 2001, Mudambi 2002). Brand management is connected with the

    constructs of brand strength and brand equity, respectively (Hutton 1997). The economic

    relevance of brands in the b-to-b area is also shown by the high brand equities of b-to-b

    brands (Berner and Kiley 2005).Prior work has discussed these approaches in an isolated way. For example, the re-

    lationship literature has propagandized a paradigm shift from a transactional to a rela-

    tionship approach (Brodie et al. 1997). Furthermore, the brand literature neglects the

    relevance of personal relationships.

    In summary, practical examples and rst conceptual ideas underpin the relevance of

    the three different approaches product advantages, good personal relationships and /or

    strong brands. Our purpose is to develop such an integrated marketing quality model

    for the b-to-b sector. More specically, we have two objectives. Firstly, we develop a

    framework with the three separated marketing quality dimensions. This framework isexible and managers can adapt this approach to their specic situations. Secondly, we

    analyse empirically the relative importance of the three quality layers for various markets.

    This analysis addresses the question of how important is the new management concept

    brand management in the b-to-b context in comparison to the classical concepts of

    product and relationship management.

    The organization of the article is as follows: we begin with a brief literature review.

    Based on this, we introduce the new model MARKET-Q, which integrates the different

    marketing concepts and various performance indicators. Following this, we present the

    design and the results of an empirical test of this new model in one typical b-to-b market.Furthermore, we provide the main results of two further replication studies in the b-to-b

    context We conclude this article with a discussion of limitations managerial implications

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    Literature Review

    Past research has focussed on two distinct approaches to integrate the various marketing

    concepts in one single framework:

    (1) The strategic orientations, and

    (2) The behavioural models.

    The strategic orientation approach, which is based on the work of Miles & Snow

    (1978), paraphrases the corporate philosophy or the way of doing business (Zhou, Yim,

    and Tse 2005). This approach is characterized by an internal and management-oriented

    view. In the literature, three research streams can be identied. The rst direction analy-

    ses a certain orientation of the management, e. g. market orientation, (Kohli and Jaworski

    1990; Narver and Slater 1990). In contrast, the second and third directions compare dif-

    ferent strategic orientations with each other. The difference between the two directionsis the abstraction level. The rst view compares fundamental strategic orientations. For

    example, Miles and Arnold discuss the differences between market and entrepreneurial

    orientation in the furniture industry (Miles and Arnold 1991). Baker and Sinkula analyse

    the synergistic effect of market and learning orientation on the organizational perform-

    ance (Baker and Sinkula 1999) and Gatignon and Xuereb investigate the relationship be-

    tween various strategic orientations (customer, competitor, technological) and innovation

    performance (Gatignon and Xuereb 1997). The second comparative approach focuses

    on a single strategic orientation and analyses the relative importance of different types.

    In the work of Coviello et al. the marketing orientations transaction, database, interac-tion and network marketing are analysed (Coviello et al. 2002). Noble et al. analysed

    the relative inuence of various elements of market orientation (customer orientation,

    competitor orientation, inter-functional coordination, prot focus, long-term focus, pri-

    vate label brand focus, national brand focus) and other strategic orientations (production

    orientation, selling orientation) on the rm performance (Noble, Sinham, and Kumar

    2002). This third research stream is a good starting point for the development of an

    own marketing quality model. However, all the models of strategic orientation focus

    with an internal view on the management side. In contrast, the new marketing quality

    model should consider the customer evaluation of the different marketing approaches.Furthermore, the existent strategic orientation models analyse only a part of the possible

    marketing approaches.

    The behavioural models integrate the effects of different marketing concepts in a sin-

    gle framework. This group of models is characterized by a customer evaluation of the

    marketing concepts. A rst direction is the transformation of a construct from one area

    to another one. For example, Fournier (1998) combines relationship management and

    relationship quality with a brand-oriented view. These approaches cant analyse the rela-

    tive importance of different marketing orientations on the market performance. A further

    group of approaches integrates the product quality and the relationship quality in a single

    framework. For example, Leuthesser (1997) has developed and empirically tested in b-

    to-b markets a model which analyses the inuence of relationship quality and product

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    els are developed in a service context by Bittner and Hubbert (1994) and Henning-Thurau

    and Klee (1997). These models neglect completely the concept of brand management.

    The last group of models considers more than two marketing concepts. The most promi-

    nent model of this type is the customer equity model of Rust and colleagues (Lemon

    et al. 2004, Rust, Lemon, and Zeithaml 2004). This model analyses the effects of value,brand and retention equity on the customer equity. In comparison to the other model, this

    is a comprehensive quality model. Independently of the problem of the calculation of the

    customer equity, the model also neglects the personal relationship between customers

    and the employees of the company. The relation equity element of this model is limited

    to institutionalized customer loyalty programmes. Particular to the b-to-b context, the

    personal level is an important building block of a successful marketing concept.

    In sum, the new b-to-b marketing quality model considers the aspects of the compari-

    son of various marketing orientations in a single framework. Furthermore, the new model

    is based on the behavioural and customer-oriented evaluation of the marketing manage-ment. A more direct evaluation of the market performance (customer behaviour inten-

    tions) and the additional consideration of personal relationships supplement the existing

    frameworks.

    MARKET-Q Model

    The framework conceptually consists of a management level and a quality level as well as

    a performance level. Additionally, the new marketing quality model is based on the threelayers of product, relationship, and brand. The main emphasis of this paper is on the qual-

    ity level and on the relations between the quality layers and the market performance.

    Product quality

    Product quality is an established explanation approach in the b-to-b area for economic

    success. The assumption is that b-to-b business is the result of rational decisions at the

    product level. In the literature, there is a disagreement on whether product quality and

    customer satisfaction are synonyms (Garvin 1984) or different constructs (Henning-Thurau and Klee 1997). Furthermore, the scope of the constructs of customer satisfaction

    and product quality is unclear. In most cases the customer satisfaction shows a larger

    scope by the integration of relational factors (e. g. relationship satisfaction). The new

    marketing quality model which will be presented in this paper is based on clear distinc-

    tive constructs. Relational aspects are taken into account in the construct of relationship

    quality. Therefore, the layer of product quality focuses only on the satisfaction with the

    core product.

    The satisfaction with a product is the result of a multi-attribute comparison process

    between the expected and the received performances. Due to the multi-attributive charac-ter of customer satisfaction, it is required to identify single attributes of product quality.

    Reviews of different attribute catalogues of product quality (Garvin 1984) and customer

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    delivery reliability) (Mittal and Lassar 1998). Therefore, product quality is modelled as

    a second-order construct in our quality model. A further standardization of product quality

    is not possible because the different business lines and companies are characterized by a

    high heterogeneity.

    Relationship quality

    Besides product quality as the quality of the transaction object, the relationship layer is

    taken into account by the construct of relationship quality. Despite the fundamental agree-

    ment about the necessity of a good business relation, no dominating conceptualization

    of the construct of relationship quality exists (Dorsch, Swanson, and Kelley 1998, Naud

    and Buttle 2000, Henning-Thurau, Gwinner, and Gremler 2002). Firstly, the object of re-

    lationship is unclear. Some denitions consider all objects as possible relationship objects

    (Henning-Thurau and Klee 1997, Smith 1998). In other denitions, only persons are theobjects of relationship quality (Crosby, Evans, and Cowles; 1990, Boles, Barksdale, and

    Johnson 1997). A broad approach to relationship quality has a number of overlaps with

    the other constructs of our quality model. Therefore, we conceptualize relationship qual-

    ity in a narrow sense as the quality of the interaction between the customer and the most

    important contact person of the supplier company.

    Furthermore, disagreement exists over the components of relationship quality. Most

    denitions take into account two central dimensions: trust and commitment (Morgan and

    Hunt 1994). Because commitment, which is the inner readiness for a long-term relation-

    ship with the partner, possesses intersections with the outcome side of our model, weconceptualize relationship quality as a one-dimensional construct of the trust between the

    customer and the employees of the supplier company. Trust is based on the condence of

    the customer in the exchange partners reliability and expertise (Moorman, Zaltman, and

    Deshpand 1992, Morgan and Hunt 1994).

    Brand quality

    While in the b-to-b context, product quality as well as relationship quality are established

    marketing concepts, brand as a symbolic layer has won attention in the literature onlywithin the last few years (McDowell Mudambi, Doyle, and Wong 1997, Webster and

    Keller 2004)

    Approaches to the measurement of brand quality are found in brand equity litera-

    ture, particularly in the literature on customer-based brand equity (Aaker 1991, Keller

    1993, Yoo, Donthu, and Lee 2000). These approaches were largely developed for the

    consumer market (Gordon, Calantone, and di Benedetto 1993, Hutton 1997, Kim et al.

    1998). Because of the differences between b-to-c and b-to-b markets, an unchanged

    transfer of these approaches is not possible. Furthermore, many brand equity models

    mix brand quality with outcomes like price intention (de Chernatony and McDonald1998) or loyalty (Yoo et al. 2000). Therefore, we developed our own conceptualization

    of brand quality As a result of the high transparency of b-to-b markets and the small

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    contains a variety of different aspects such as an emotional image, functional image and

    brand trust. In our b-to-b marketing quality model, we measure brand image by the fol-lowing three aspects: rstly, the general quality as a summary cue is considered in our

    model; secondly, a strong brand is characterized by a clear distinction from other brands

    (uniqueness); thirdly, a strong b-to-b brand is based on the function of risk reduction

    (Mudambi 2002).

    Performance outcomes of marketing quality

    By analogy with the classical discussion of goals, we distinguish between psychologi-

    cal and economic performance outcomes. Even though a lot of researchers call for ameasurement of the marketing performance in economic dimensions like prot or rm

    value (Srivastava Shervani and Fahey 1998 Rust et al 2004) we chose a psychological

    Table 1 Effects of various quality dimensions

    MARKET-Q-dimensions

    performance

    outcomesPRO

    DUCT

    QUALITY

    RELATION-

    S

    HIP

    QUALITY

    BR

    AND

    QUALITY

    categories of

    psychological-based

    market performance

    price premium, price intention, price sensitivity 14 1, 6, 9, 10price

    premium

    loyalty, customer retention, brand loyalty 2, 5

    loyalty

    premium

    cross buying, acceptance of additional products 7

    repeat buying intention 11 4

    emotional loyalty

    share of wallet, buying intensity 12 7

    positive mouth-to-mouth communication,reference behaviour, recommendation 11 2 1, 9 advocate

    premiumcooperation, open communication, dialog 8 8

    1. Bendixen, Bukasa & Abratt (2004)

    2. Boles, Barksdale & Johnson (1997)

    3. Cretu & Brodie (2007)

    4. de Ruyter, Moormann & Lemmink (2001)

    5. Dorsch, Swanson & Kelley (1998)

    6. Firth (1993)

    7. Gordon, Calantone & di Benedetto (1993)

    8. Hadwich (2003)9. Hutton (1997)

    10. Kim, Reid, Plank & Dahlstorm (1998)

    11. Lam, Shankar, Erramilli & Murthy (2004)

    12. Leuthesser (1997)

    13. Roberts & Merrilees (2007)

    14. Stock (2005)

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    the reason for this decision. The literature on b-to-b marketing discusses a wide range of

    psychological performance outcomes in the context of product quality, relationship qual-

    ity and brand quality (see Table 1).

    In an integrated view, the three quality layers explain similar psychological perform-

    ance outcomes. Hence, it is possible to summarize the various effects to three main cat -egories: price premium, loyalty premium and advocate premium.

    Hypotheses

    On the basis of the previous discussion, we propose a positive effect of the three market-

    ing quality dimensions on the three market performance outcomes. Therefore, we suggest

    the following hypotheses:

    P1:Product quality has a positive effect on

    a) the price premium

    b) the loyalty premium, and

    c) the advocate premium.

    P2:Relationship quality has a positive effect on

    a) the price premium

    b) the loyalty premium, and

    c) the advocate premium.

    P3:Brand quality has a positive effect on

    a) the price premium

    b) the loyalty premium, and

    c) the advocate premium.

    Moreover, the repeated positive evaluations of single products and processes (product

    quality) are the basis for the evaluation of the general quality (brand as a summary cue)

    and for the risk reduction (McDowell Mudambi et al. 1997, Roberts and Merrilees 2007).

    On this argumentation, we expect that:

    P4:Product quality has a positive effect on the brand quality.

    MARKET-Q model

    Against this background, we integrate the product, relationship and brand quality as well

    as the performance categories in a single marketing quality model (MARKET-Q) (see

    Figure 1).

    In general terms, our model evaluates the subjective quality of the most important

    marketing drivers in a comprehensive and comparative style. Furthermore, the relations

    of the quality layers to the market performance permit an analysis of the relevance of the

    individual quality aspects. Additionally, the standardization allows a comparison betweendifferent companies from the same or from different areas of business (benchmarking).

    Nevertheless by avoidance of the specication of the single items (e g product qual-

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    The Study

    In this paragraph, the design and the results of an empirical test of the MARKET-Q model

    in a b-to-b context are presented. This study examines the model and makes clear the

    practical application and interpretation possibilities.

    Research design

    For the empirical test of the MARKET-Q model a study was carried out for a selected

    market of the building industry in Germany. The analysed market is characterized by a

    relatively low level of customer integration in the production process, visibility of this

    product in the end product (buildings), high relevance of wide product range and design,

    and a multi-level market structure with a wholesale level. All companies of this market

    operate with their own sales force. Front doors, oorings, switches and sockets are typical

    products of this kind of market.

    The construction of the questionnaire was based on qualitative interviews with cus-

    tomers and a workshop with managers (marketing sales and production)

    Figure 1 B-to-B Marketing Quality Framework (MARKET-Q)

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    quality of the suppliers who were familiar to them. The study was conducted in summer

    2005. The sample of the craftsmen is based on a customer and interested party database

    of one supplier. Altogether, 3,309 persons were contacted (net sample). Of the 658 crafts-

    men who started the online interview (19.9 %), 476 craftsmen have worked through the

    interview completely (14.4 %). Since every person judged at least two suppliers, the dataanalysis is based theoretically on 1,316 cases. Respondents with too many missing values

    (over 50 %) were eliminated completely. Singular missing values, however, have been

    replaced by the respective mean average value differentiated by the suppliers. Altogether,

    the model test is based on a data set of 1,075 completed cases.

    Questions which measure the indicators of the MARKET-Q model as well as the three

    performance categories are the main part of the survey. The data were evaluated with the

    help of the software programs SPSS (version 15.0) and SmartPLS (Ringle, Wende and,

    Will 2006).

    Operationalization of measures

    The questionnaire contained the measures of the three marketing quality constructs and

    the measurement of market performance (for the items see appendix). For all constructs

    we used multi-item scales in a Likert format (scale from 1 to 5).

    The construct of product quality is, with the two dimensions of product and process

    quality, a second-order construct. Both dimensions are causes for the product qual-

    ity construct. Therefore, we operationalized this construct in a formative way (Jarvis,

    MacKenzie and, Podsakoff 2003). In contrast, the single items for the product and theprocess quality are interrelated (reective operationalization). In order to specify a mixed

    second-order construct the literature discusses different approaches (Jarvis et al. 2003):

    additional measurement of the second-order construct by manifest variables, repeated

    indicators, and calculation of indexes for the component level. The rst approach has the

    disadvantage that the length of the survey is increased. The basic condition for the second

    approach is the same number of manifest variables for all components. In practical stud-

    ies, this condition is often not fullled. Therefore, we chose the third approach. First, we

    analysed the measurement models of the two components (reective models). Then we

    calculated the mean for both components. These means are the formative indicators forthe measurement of the product quality.

    The constructs of relationship quality and brand quality are reective constructs. In

    order to measure these constructs we used standard scales. For the measurement of the

    relationship quality, it is necessary to determine the most important contact person. We

    discussed this question with the management and with some customers. On this basis, we

    decided that the sales person is the most important contact person for the customer. There-

    fore, we measured the relationship quality between the customer and the salesperson of

    the supplier company.

    Results

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    exible. The PLS algorithm is also applicable if the number of observations is relatively

    low and the manifest variables dont meet the conditions of a multinormal distribution.

    (1) Measurement model

    The building blocks of the MARKET-Q model represent product, relationship and brand

    quality as well as the market performance outcomes of price, loyalty and advocate premi-

    ums. All these variables are latent constructs which are not accessible to a direct obser-

    vation. The measurement of such constructs is based on accessible indicators which are

    connected with the construct. In order to check the goodness of these measures we used

    classical routines (Churchill and Gilbert 1979, Bagozzi and Yi 1988, Diamantopoulos and

    Winklhofer 2001). Table 2 summarizes the results of the measurement models.

    Coefcient alpha and construct reliability are generally high. The constructs full

    predominantly the composite reliability (recommended threshold = 0.6) and the average

    extracted variances (recommended threshold = 0.5).

    Table 3 Summary of the hypotheses tests

    Hypotheses Std. estimates t-values

    Product quality price premium 1a 0.00 0.17 Failed to accept

    Product quality loyalty premium 1b 0.07 2.04** Accepted

    Product quality advocate premium 1c 0.06 2.08** Accepted

    Relationship quality price premium 2a 0.02 0.65 Failed to accept

    Relationship quality loyalty premium 2b 0.20 6.48*** Accepted

    Relationship quality advocate premium 2c 0.13 5.24*** Accepted

    Brand quality price premium 3a 0.44 12.69*** Accepted

    Brand quality loyalty premium 3b 0.52 14.55*** Accepted

    Table 2 Measurement Model of MARKET-Q

    Construct Dimensions Number

    of items

    Coefcient

    alpha

    Composite

    reliability

    Average

    variance

    extracted

    PRODUCT QUALITYCore product quality 6 0.84 0.84 0.48

    Process quality 5 0.77 0.78 0.42

    RELATIONSHIP

    QUALITYTrust in the sales person

    4 0.94 0.94 0.80

    BRAND QUALITY 4 0.83 0.85 0.58

    ADVOCATE PREMIUM 2 0.74 0.89 0.79

    LOYALTY PREMIUM 4 0.84 0.89 0.67

    PRICE PREMIUM 1 calculation is not possible

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    (2) Structural model

    In order to test the effects of the marketing quality on the three different market outcomes

    we analysed a structural model (see Table 3). We estimated the model by the mean of the

    PLS approach. In order to test the signicance of the structural coefcients we addition-

    ally conducted a bootstrapping routine (n = 1,000). Firstly, the results support the positive

    inuence of the product quality on the brand quality (0.64***). Furthermore, the product

    quality has a signicant positive inuence on the loyalty (0.07**) and advocate premium

    (0.06**). In contrast, the product quality has no positive inuence on the price premium.

    Similarly, the relationship quality has a signicant positive link to the loyalty (0.20***)

    and to the advocate premiums (0.13***), but no link to the price premium. For the brandquality all three hypotheses are supported (price premium: 0.44***; loyalty premium:

    0.52***; advocate premium: 0.61***).

    Table 4 summarizes the results of the structural models.

    At rst, it can be recognized that a part of the variances of all three outcome meas -

    urements are explained by the three quality dimensions. Additionally, the results of the

    Stone-Geiser test show clearly the quality of the model. In a comparative view, the results

    clarify the different explanation power of the three market outcomes. The MARKET-Q

    model has a strong explanation power for the loyalty and the advocate premiums. In con-

    trast, the explanation power for the price premium is relatively low.Furthermore, the results of the main study underpin the high relevance of brands in

    the b-to-b sector. The path coefcients of the brand quality are higher than the path coef-

    cients of the product and the relationship quality.

    (3) Generalizability of the model

    To examine the generalizability of the postulated model, it was important to asses its ro-

    bustness with different products and markets. Firstly, this study was replicated with an ad-

    ditional target group (wholesaler) on the same market. Secondly, we analysed this modelfor a different product and a different market type (supply industry). With the exception

    of the measurement model for the product quality we used the same measurement models

    Table 4 Results of the Structural Model (Main Study)

    Price Premium Loyalty Premium Advocate Premium

    PRODUCT QUALITY1 n.s. (0.276) 0.072** (0.407) 0.064** (0.456)

    RELATIONSHIP QUALITY n.s. 0.196*** 0.128***BRAND QUALITY 0.441*** 0.523*** 0.612***

    Explained variances in % 18.4 46.0 51.4

    Sone Geiser Test (Q2) 0.18 0.31 0.40

    1. rst value = direct effect; second value in parenthesis = total effect

    *: p < 0.1; **: p < 0.05; ***: p < 0.01; n.s.: non signicant

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    The results of both replications comply with the Stone-Geiser test. Turning to the

    parameter estimation, Table 5 reports results that are very similar to the ndings of the

    main study. The MARKET-Q model explains only a small amount of the variances of the

    price premium (16.6 % and 11.4 %), but a high amount of the loyalty (30.2 % and 40.2 %)

    and advocate premiums (29.7 % and 45.4 %). Moreover, in both replications, the brand

    quality is the most important driver for the price, loyalty and advocate premiums. In con-trast, the relationship quality only shows a signicant effect on the loyalty premium. The

    product quality only has a signicant positive inuence on the loyalty premium in one

    study. In summary, these two replications provide further support for the hypothesized

    model.

    Discussion

    Limitations

    At rst, the proposed quality model measures the marketing quality in detail and in a

    comprehensive style. Nevertheless, the MARKET-Q model is a simple and, for practical

    studies, usable model.

    The model at hand takes into account only a small part of the special features of b-to-b

    markets, such as collective decisions (buying centre) or formal and long-term decision

    processes. The concept of buying centre especially requires a detailed modelling of the

    inuences of the product, relationship and brand quality dimensions on the different roles

    in the buying centre as well as the relevance of the three drivers in the interaction amongthe different members of the buying centre. Furthermore, it is a model which measures

    the current level of the marketing quality The level of the marketing quality in the differ-

    Table 5 Results of Replication Studies

    Price

    Premium

    Loyalty

    Premium

    Advocate

    Premium

    Replication 1target group:

    wholesaler

    method:

    online survey

    n = 608

    PRODUCT QUALITY1

    n.s. (0.21) n.s. (0.28) n.s. (0.32)RELATIONSHIP QUALITY n.s. 0.18*** n.s.

    BRAND QUALITY 0.45*** 0.40*** 0.48***

    Explained variances in % 16.6 30.2 29.7

    Stone-Geiser test (Q2) 0.16 0.17 0.22

    Replication 2

    target group:

    industrial buyers

    method: online

    survey

    n = 878

    PRODUCT QUALITY1 n.s. (0.22) 0.14*** (0.40) n.s. (0.42)

    RELATIONSHIP QUALITY n.s. 0.14*** n.s.

    BRAND QUALITY 0.37*** 0.44*** 0.59***

    Explained variances in % 11.4 40.2 45.4

    Stone-Geiser test 0.12 0.27 0.34

    1. rst value = direct effect; second value in parenthesis = total effect

    *: p

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    merely as results of the marketing quality of the analysed company. In reality, these ef-

    fects are also inuenced by the marketing quality level of the competitors.

    Additionally to these rather fundamental limitations of the proposed model, the em-

    pirical study shows some limitations. First, it studies the application of the MARKET-Q

    model in only two b-to-b markets. Also, ad-hoc scales were used in this explorativestudy.

    Managerial Implications

    Besides these limitations, the model offers valuable management implications. Firstly,

    the suggested model is a comprehensive model which is not focussed on single concepts

    (e. g. relationship management). The framework models product, relationship and brand

    quality as three distinct facets of the marketing quality. The results also suggest that the

    three quality facets have an explanation power for the three performance indicators: pricepremium, loyalty premium and advocate premium.

    Furthermore, the model also promotes the integration of marketing into a compre-

    hensive controlling concept. The construction of indices for product quality, relationship

    quality and brand quality for the different companies can support this controlling task.

    Possible uses of the model as a controlling tool are time comparisons, comparison of dif-

    ferent business units of a company (e. g. country markets, products, customer groups) as

    well as the comparison with other companies from other business lines (benchmarking).

    Moreover, the knowledge of product, relationship and brand relevance for success sup-

    ports budget decisions.Finally, the results of the main study and the two replications underpin the high rel-

    evance of the brand concept for the b-to-b sector. In all three studies and for all three

    market performance categories, the brand is the most important success driver. In con-

    trast, the product quality has only an indirect effect on the price, loyalty and advocate

    premiums in most cases.

    Further research

    From a research perspective, two areas clearly require further investigation: test and ex-pansion of the model.

    The rst research issue is the testing of the model with additional samples. In this

    context, tests of the model for additional b-to-b industries and for b-to-b services are

    important directions. Further research should also focus on the validation of the different

    constructs. In this context, a more rigorous test of the discriminant validity is desirable.

    The classical multitrait-multimethod approach is a good methodological starting point

    for this test (Campbell and Fiske 1959). Additionally to the internal validity, an analysis

    of the relationship between the psychological outcomes (loyalty, price and advocate pre-

    mium) and economic outcomes would be necessary. Finally, an analysis of the kind ofrelationship between the quality constructs and the outcomes (linearly or non-linearly) is

    an important topic for further research

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    able methodological instrument for this analysis. An additional further research eld is the

    question about the most effective pattern of marketing quality. For example, is a company

    with medium values on the three quality facets or a company with a very high value on

    one and low values on the two other quality facets more successful? Furthermore, the

    model MARKET-Q can be enlarged in the direction of preliminary concepts. The questionabout the relevance of the sales persons for brand quality or the inuence of the Internet

    on relationship quality are exemplary topics for new research projects. Finally, the analy-

    sis of the inuence of the competitors marketing quality on the different market outcome

    categories is an important direction for further research. Starting points for such an expan-

    sion are offered by the models of Laroche and Brisoux (1989) and Trommsdorff (1984).

    Appendix

    Table 6 Operationalization of the quality dimensions and the market performance categories

    Construct Indicators Scale

    Core product

    quality*

    Range of products

    Ease of use

    Assembly kindness

    Technology level

    Range of variants

    Fault and maintenance kindness 1 = satisfaction;

    5 = dissatisfaction

    Process quality*

    Technical service

    Sample caseDelivery time

    Sales folder

    Trainings

    Relationship

    quality

    My contact person is an expert and a competent partner

    My contact person is pleasant

    My contact person understands my special needs

    I can rely on the word of my contact person

    1 = strongly

    agree;

    5 = strongly

    disagree

    Brand quality

    Brand X stands out clearly from other brands

    By the purchase of brand X, I reduce the risk of making wrong

    decisionBrand X offers products with a high quality

    Brand X is competent

    Loyalty premium

    We expect to make more deals with the company X in the future

    Within the next years we will probably buy more frequently from the

    company X

    It is very likely that we will continue the business relation with the

    company X

    We will repeatedly buy from the company X in the future

    Advocate

    premium

    I would be available as a reference customer for the company X

    I recommend the company X to friendly companies

    Price premiumWe are ready to pay a higher price for products of company X in

    comparison to other suppliers

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