Value Based Differentiation in Business Relationship for Capital Products and Complex Solutions: A Conceptual Framework in Egypt

Ahmed O. El-Tagy and Khaled Wahba
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Ahmed O. El-Tagy: Maastricht School of Management (MSM), Cairo, Egypt
Khaled Wahba: Maastricht School of Management (MSM), Cairo, Egypt

International Journal of Customer Relationship Marketing and Management (IJCRMM), 2016, vol. 7, issue 2, 52-70

Abstract: Value based concepts are widely viewed as a way that enables companies to escape the price competition. In this case benefits and values start to have a great role. The main objective of the research is to develop a conceptual framework for building relationship value in the B2B context of capital products and complex solutions in Egypt. We complemented the literature review with twelve in-depth interviews with different buying center members who are involved in the purchasing decisions of complex solutions or capital products in medium and large organizations. The relationship value drivers were categorized as benefits and cost drivers. The benefit drivers that creates value for B2B capital products are (after sales service, product quality, time to market, supplier brand name, risk reduction, salesman role, and supplier market orientation). On the other hand, the model constructed the cost drivers as (direct cost, operation cost and payment methods).

Date: 2016
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