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An Empirical Study of Buyer''s Response Determinants for R&D Service
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R&D service outsourcing has become a popular strategy for manufacturing firms in Taiwan in recent years. The plastic technique R&D service market, composed of public and private institutes, laboratories, as well as universities, is of flaming competition; PIDC (Plastic Industry Development Center), one of the major plastic technique R&D service providers, is facing strong pressure of customer retention. Before implementing an effective customer retention policy with limited marketing resources, PIDC is eager to know what determinants affect customers' response, loyalty tendency and how it impacts customers' response. In this study, based on relationship marketing theory, we add market orientation concept to form a framework that relates loyalty tendency to factors including trust in the service provider, satisfaction with the service provider, effective communication with the service provider, and buyer's cultural market orientation. A questionnaire is designed to collect data from PIDC's current customer companies. The path analysis will be used to verify the causal relationships between customer response variables and their determinants, and to test hypotheses developed based on the proposed framework.
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