Small medium enterprises represent the largest share of revenues in the apparel and fashion business, compared to larger integrated companies. Small companies however often have to rely on larger suppliers in order to efficiently produce their products. These larger suppliers however will often prioritize companies that place larger orders. In the impossibility to deliver larger orders, how can these buyers make sure that a producer complies with their requests? In this paper we try to answer this question by applying concepts from the marketing channels literature to the specific context of fashion buying. We conclude that despite that the peculiarities of the fashion business do not foster the formation of long-term commitment, dependent companies can develop sources of power based on knowledge and reputation, but also based on applying non-mediated ways to manage the buyer-seller relationship. Examples of possible power sources for a buyer are: establishing a strong brand that a business partner will use in promoting its proposition, forcing suppliers to make transaction specific investments (which are not redeploy able), specializing in new products and technologies that a supplier will want to understand and use, developing knowledge that can be exchanged in the form of specialized personnel, investing in standardization of communication before the relationship starts in order to reduce administrative costs for both parties. Power sources are most effective when non-mediated, i.e. informal and based on reciprocity; ‘hard’ contracts with punishments (coercive power sources) in case of non-compliance will diminish the willingness to collaborate.
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The sharing economy holds promise for the way we consume, work, and interact. However, consuming in the sharing economy is not without risk, as institutional trust measures (e.g. contracts, regulations, guarantees) are often absent. Trust between sellers and buyers is therefore crucial to complete transactions successfully. From a buyer ́s perspective, a seller ́s profile is an important source of information for judging trustworthiness, because it contains multiple trust cues such as a reputation score, a profile picture, and a textual self-description. The effect of a seller’s self-description on perceived trustworthiness is still poorly understood. We examine how the linguistic features of a seller’s self-description predict perceived trustworthiness. To determine the perceived trustworthiness of 259 profiles, 189 real buyers on a Dutch sharing platform rated their trustworthiness. The results show that profiles were perceived as more trustworthy if they contained more words (which could be an indicator of uncertainty reduction), more words related to cooking (indicator of expertise), and more words related to positive emotions (indicator of enthusiasm). Also, a profile’s perceived trustworthiness score correlated positively with the seller’s actual sales performance. These findings indicate that a seller’s self-description is a relevant signal to buyers, eventhough it is cheap talk (i.e. easy to produce). The results can guide sellers on how to self-present themselves on sharing platforms and inform platform owners on how to design their platform so that it enhances trust between platform users.
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accepted abstract Quis14 conference Field findings show that value dimensions in legal services are functional, social and emotional. The last category emerges not only within but also outside the interaction with the lawyer. Recommendation of others or the trackrecord of lawyers for example, which play a role before or after the service, contribute to emotional values like trust and reassurance and help clients to reduce the perceived purchase risk, which is inherent to the nature of credence services. Also due to the credential character of legal services we conclude that not only professional skills but also service aspects as client involvement play an important role in the emergence of value because professional skills are difficult to judge even by routine buyers.
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