EVALUATING SUPPLIER SELECTION CRITERIA AND ITS IMPACT ON 4 DIMENSIONS OF CUSTOMER SATISFACTION: EMPIRICAL STUDY ON ENGINEERING INDUSTRY OF PAKISTAN

Abstract

PURPOSE: The objective of this study is to examine the important factors in supplier selection criteria and the impact of supplier selection on customer satisfaction METHADOLOGY: In this study survey method was adopted to collect the data. Web based questionnaire was used to collect the data from the companies easily available on the social sites. Sample size of this study was 200 and sampling technique chosen was convenience sampling. To analyze the results frequencies, regression, anova and correlation was studied. FINDINGS: Based on empirical results, this study highlights that companies are more concerned forcost, quality and service when selecting the supplier for their business. Competitive pricing or lower cost in accepting or rejecting a supplier has considerable affect since most of the respondents believed that the theory of being low at cost still works well for the businesses in Pakistan and major responses made cost a significant variable in selecting a supplier. According to the results, companies should look at those suppliers who are capable of satisfying them with the cost, service, management and organization, and sustainability as these are important factors and have a positive impact on competitive pricing. Results also show that companies should also look at those suppliers who are capable of satisfying them with the service, technical ability and delivery which are important factors and have a positive impact on product quality. According to the results companies should also look at those suppliers who are capable of satisfying them with the service and delivery which have emerged as important factors and have a positive impact on product variety. The study’s results also revealed that companies should also look at those suppliers who are capable of satisfying them with the important factors of technical ability, delivery and sustainability and have a positive impact on delivery service. PRACTICAL IMPLICATION: The outcome of this research have practical implications for companies in Pakistan to select and adjust supplier selection criteria for selective dimensions of customer satisfaction.