The Use of Procedural Fairness in Electronic Reverse Auctions to Enhance Relationship Quality
Muylle, Steve Standaert, Willem
Muylle, Steve
Standaert, Willem
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2016
Journal
Psychology & Marketing
Book
Publication Volume
33
Publication Issue
4
Publication Begin page
283
Publication End page
296
Publication NUmber of pages
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Abstract
In this study, the use of procedural fairness by a buying organization in an electronic reverse auction (ERA) is examined. Drawing on the literature, a conceptual model is developed that relates procedural fairness to two key ERA outcomes: relationship quality and quality of the offering. The hypothesized relationships between procedural fairness and quality outcomes are empirically tested through a global field study with 179 procurement professionals in multinational companies, and explored through a supporting field study with 31 sales professionals from supplier firms. The results show that the use of procedural fairness by a buying organization is positively related to relationship quality and quality of the offering, without jeopardizing price savings. In addition, the positive association between procedural fairness and relationship quality is found to increase in the case of a repeat auction. This study contributes to the relationship marketing literature by examining how procedural fairness can mitigate relationship quality concerns in ERA use by buying organizations.
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Keywords
Response Rates, Organizational Citizenship, Justice, Buyer, Performance, Impact