Unveiling the power of supplier-country image on B2B customers' perceptions: Beyond the product’s beauty

Abstract

Researchers in business-to-business (B2B) sectors often assume that findings regarding country-of-origin (COO) effects on end consumers can be directly applied to the industrial marketing context. This tendency to generalize can result in an inaccurate understanding of how buyers perceive COO information in B2B scenarios. This study investigates the effect of supplier-country image on international customers’ perceptions of both perceived product quality and relationship quality in a B2B market environment. We further examine the consequences of perceived product quality and relationship quality on supplier awareness and customer loyalty. Data collected from 182 international B2B buyers in the Portuguese footwear, molds, and wood products and furniture industries were analyzed using structural equation modeling (SEM). The results indicate that supplier-country image influences the relationship quality dimensions (trust, commitment, and satisfaction) and perceived product quality. Moreover, trust and commitment enhance customer loyalty, while trust and satisfaction leverage supplier awareness. In contrast, perceived product quality only influences customer loyalty, albeit to a weaker extent. Thus, relationship quality plays a more significant role than perceived product quality in influencing supplier awareness and customer loyalty in B2B environments. These results challenge the notion that the impact of COO on end consumers can be equally applied in B2B contexts, and they expand our understanding of how supplier-country image affects relationship quality in the industrial setting. Furthermore, they draw managers’ attention to the importance of mitigating a potentially negative COO image through measures aimed at improving relationships.