Study 2 – Different Dimensions of Product Program Innovativeness and Their Effects on Customer Loyalty

Abstract

The management of innovative products is particularly critical in business-to-business (B2B) relationships. As these relationships are usually long-term in nature, companies ' success depends largely on the ability to keep customers attracted. Innovations appear to play a key role in this endeavor, because they offer several advantages to B2B customers. In particular, new products provide value by helping customers improve their own products (Subramanian/Nilakanta 1996), by demonstrating that the supplier is capable of keeping up with technological developments and trends in the market, and by indicating the supplier 's ability to stay competitive. These benefits make the supplier an attractive partner for B2B customers seeking to establish long-term relationships. Thus, a company 's innovativeness may be an important means of fostering customer loyalty in B2B relationships.

© 2011, The Product Development & Management Association: Journal of Product Innovation Management, Two Sides of the Same Coin: How Do Different Dimensions of Product Program Innovativeness Affect Customer Loyalty?, 2011, forthcoming, Stock, R. M./Zacharias, N. A.