Table 1.

Customer attractiveness drivers

DriverFactor examples
Market growthSize, market share, growth rate, influence on the market, barrier to entry/exit, access to new customers/markets
RiskRisk sharing, standardization of product, dependence, level of transaction-specific assets, demand stability, patent protection, level of integration, political risk, market stability
TechnologicalCustomer’s ability to cope with changes, depth of skills, technological skills, commitment to innovation, knowledge transfer, supplier trainings, early R&D involvement and joint improvement
EconomicMargins, price/volume, cost elements, value creation, economies of scale, capacity utilization, negotiation pressure
SocialPossibilities for extensive face-to-face contact, supplier participation in internal teams, tight personal relations, familiarity, compatibility, behavior, communication, information exchange, output factors (trust, commitment, interactions/loyalty, reliability)

Source(s): Modified from Hüttinger et al. (2012) 

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