Role of Customer Loyalty in the Application of Customer Data within Supply Chains

Abstract

In this paper, we explore the drivers behind the use of customer data in retail supply chains. While past literature has primarily posited that power and trust among retailers and suppliers is created by the sizes of organizations, further determining how supply chains share and utilize customer data, we seek to extend this understanding. Based on our analysis, we identify end-customer behavior as an important attribute that determines decision-making regarding usage of customer data. The more customer data of individual end-customers is dispersed among retailers – i.e. the less loyal customers are – the more likely it is that the retailers share data with their suppliers. Building on this, our study enhances the current understanding on the sources for power and trust and discovers a new dynamic for why customer data is not always applied throughout the supply chains. It also identifies new aspects to consider for policy makers looking to support the development in the use of data that is highly important for many economies.