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Reference Characteristics of a good Customer reference for a process equipment supplier-Salminen.Jalkala Anne.Arpalo Janos.Mirola tuuli.Pekkarinen Olli.-24th IMP conference.2008 .Risto T..
What are the characteristics of a good customer reference for a process equipment supplier? . Research Question.Introduction Customer references is the suppliers relationship to its existing or former customers that can be evaluated by the customers in terms of the suppliers product. The Purpose of the study is to increase the understanding of good reference characteristics for a process equipment supplier. management and cooperation performance. service.
Establish insecurity and induce competitors to withdraw from competitive biddings. Serve as an enforcement to remain loyal to the supplier. . Maintain/awaken sleeping relationships. Re-establish credibility among existing customers.Customer reference-Objective Expected to reduce the uncertainty of a potential customer. Create credibility among actors( consultants. financers) of the Project.
Communicating reference to MarketPractices Reference lists Application specific Product specific Technology specific Country/area specific Reference visits Company Website Press release Brochures of success stories Articles in trade journals Promotional material Seminars .
Internet Based Survey. Response rate is (89/780)*100=11. Importance of the customer reference characteristics was evaluated on a seven point Likert rating Scale where 1 stood for ³not important´ and 7 for ³extremely important´.Research process Minsys Filteration.4% .
430 employees in 36 countries.Overview of process equipment supplier Minsys-provides filtration solution and services 12 subsidiaries. current net sales of 130 million euro (95% export) Main customer segment-mining & metallurgical industry and Chemical process industry .
If interested . 4. .Sales process Lengthy sales process of up to 2 years as Minsys provides large capital investment goods(1-10 million euro).References are presented to customer 3.full commercial quotation is given. 1.Test at customer site carried out using minsys equipment process guarantees are specified 5. 7.If interested first negotiation begins-Preliminary cost figures and equipment need are worked out.If selected Minsys tailor make the equipment.Who would be potential customer 2.Typical life span of the product is 15-25 years. 6.
Reference Characteristic(RC) Model (As used in the survey) Customer reference characteristics are divided into three parts1. Reference relationship characteristics -Relationship between Minsys and reference company 3. Reference customer characteristics -Characteristics related to the reference company . Process and equipment characteristics -Related to filter and the process where it is used 2.
RC-Model Process & Equipment Characteristics Reference relationship characteristics Reference customer characteristics Buyer¶s Perceived Risk Application Similarity Equipment Benefits Continuity Commitment and Trust Similarity Expertise Reputation & Credibility .
2. B) The more the relationship between the supplier and its reference customer is based on trust and commitment. A) The longer the relationship between the supplier and its reference customer. B) The more Equipment benefits are expected to be gained. the more risk reducing that reference relation ship is from the buyer¶s perspective .Study Hypothesis 1. the more credible and risk reducing that reference relation ship is from the buyers perspective.the more the potential buyer¶s risk is reduced. the more this perception would reduce the buyer¶s perceived risk. A) The more similar the reference application to that of potential Buyer¶s application .
B) Better the reference customers reputation and the more credible it is. A) The more expert and the more similar the reference customer is to the potential customer . .the higher is the risk reducing influence on the potential buyer.the more risk reducing that reference customer is from the potential buyer¶s perspective.Study Hypothesis 3. .
Study results The Proposed hypothesis were well supported by the responses giving fairly high correlation with reducing the risk perception of the customers. then continuity and commitment and trust and finally. similarity of reference and potential customer company . Application similarity and equipment benefits are the most important factors followed by expertise. reputation and credibility.
the Check list for selecting reference visit site-explored characteristics are ±witnessing equipment performance. .Practical Implications Supplier should always consider every aspect of RC model when selecting a reference site or when communicating Reference to the Customers-they are all important-use check list. interaction with reference customer personnel. Service benefits should be clearly demonstrated in a good customer reference. getting info on problems and daily experiences in using the equipment and seeing how service is working. Its extremely important to communicate suppliers equipment benefits to Customers.
Thank You! .