Customer Relationship,Product Market Competition And Cost Stickiness

Establishing a reasonable cost management system and achieving higher economic benefits is one of the business objectives pursued by enterprises.The traditional cost behavior theory assumes that the cost has a linear relationship with the business volume,that is,the variable cost after the decomposition increases or decreases according to the proportion of the business volume.However,in recent years,some scholar has analyzed through big data and found that cost and business volumes are not proportional.This phenomenon is called cost stickiness,and further categorizes the reasons for cost stickiness as adjustment cost,manager expectation and agency problem.The concept of cost stickiness has attracted wide attention from scholars at home and abroad.Scholars have studied the factors affecting cost stickiness from the internal,external and macroeconomic factors.The study of cost stickiness provides a certain guiding significance for enterprises to carry out reasonable resource allocation and cost control.By establishing a good relationship with customers,on the one hand,it can reduce communication costs,negotiation costs and after-the-fact customer maintenance costs with customers.On the other hand,good customer relationships can know the company's customer needs,increase the accuracy of future forecasts,and deal with uncertainty well.So,based on transaction cost theory and information asymmetry theory,this paper studies the impact of customer relationship on firm cost stickiness.As a market regulation mechanism,product market competition has certain influence on enterprise management and operation in terms of the degree of competition in the industry and the competitive position of enterprises.The degree of competition in the industry and the level of competition in the industry will inevitably affect the adjustment costs between enterprises and customers and the accuracy of the company's forecast of future demand,which may have a certain impact on the cost stickiness of enterprises.Therefore,this paper attempts to explore the effect of product market competition on the relationship between customer relationship and cost stickiness from the aspects of industry competition and corporate competitive position.This paper selects the financial data of all listed companies from 2008 to 2017 as a research sample,studies the impact of customer relationship on cost stickiness,and further explores the role of product market competition in regulating the relationship between customer relationship and cost stickiness.After research,we find the following conclusions:(1)The phenomenon of cost stickiness is common in listed companies in China;(2)Customer relationship will reduce the cost stickiness of enterprises;(3)The degree of competition in the industry weakens the inhibition of cost stickiness by customer relationships.And the degree of competition of enterprises strengthens the suppression of cost stickiness by customer relationships.