Modelling the perception gaps in business-to-business markets

Abstract

Purpose – The purpose of this research is to propose and empirically test a three-level perception gap model in a business-to-business (B2B) market. Specifically, this research explores the categories of market perception differences and attempts to represent them in a generic framework. Design/methodology/approach – It hypothesis the underlying causal relationships between the perception gaps and the channel performance. Based on the first-hand empirical data collected from a survey study in 14 UK and international firms, the conceptual causal model is tested using confirmative factor analysis and structural equation modelling. Findings – It is revealed that the business-to-business market performance is, to a significant degree, negatively associated with the magnitudes of the perception gaps exist in the three different levels of the B2B engagement structure. Practical implications – The research results provide the direct guidance as to where the root-cause of the performance shortfall is originated, shifting the practice from general B2B integration to specific performance shortfalls that are due to the unduly significant perception difference. Originality and value – Through an empirically tested model, this study furthers the understanding on the significant impact of the perception gaps on the channel performance in the business-to-business market place.