Dealing with downstream customers: an exploratory study

Purpose – In B2B markets, the demand for a supplier's products is derived from demand further down the supply chain. This complexity poses several challenges for B2B firms, especially when they are located near the beginning of a supply chain. This study aims to investigate to what extent firms near the beginning of the supply chain are oriented towards downstream customers, the problems they encounter in extending their market orientation to include downstream customers, and how they deal with these problems. Design/methodology/approach – This study uses an exploratory research method. It is based on in‐depth interviews with 31 managers from 21 upstream suppliers. Findings – The findings suggest that firms are aware of the importance of downstream customers, but frequently fail to establish effective relationships with them. The paper identifies several barriers that hamper an orientation on downstream customers and shows how firms may deal with these barriers. Research limitations/implications – The paper includes several implications for further research, including the suggestion to test a set of seven propositions. Practical implications – This study identifies several barriers that may prevent a firm from implementing a downstream customer orientation as well as several strategies to deal with these barriers. Originality/value – The paper explores the neglected implications of derived demand, one of the most distinctive characteristics of B2B marketing.