Relationship marketing and distribution channels weitz

Research on the Choice of Chinese Forest Products Channel Model: Commitment Perspectives

relationship marketing and distribution channels weitz

Relationship marketing and distribution channels. Author / Creator: Weitz, Barton A. / Jap, Sandy D. Journal / Series: Journal of the Academy of Marketing. Journal of Marketing Research and Case Studies Relational orientation, mainly within distribution channels (DC), remains a and tarnished with a win- win situation (Guibert, ; Weitz and Jap, ; N'goala, ). Request PDF on ResearchGate | Relationship Marketing and Distribution Channels | The interest of practitioners and Barton A. Weitz at University of Florida.

Specifically, our aim is to propose an explanatory model of relational orientation within distribution channels. To this end, a theoretical analysis of relationships within distribution channels is conducted in view to better understand how companies of a distribution channel develop a relational orientation. A study of the variables that condition its implementation is carried out. This study points out to the role of relational norms and trust in developing a relational orientation within distribution channels.

Introduction Analysis of relationships between manufacturers and retailers has often been centred on minimising costs and managing conflicts. The channels are considered independent, where each player seeks to reach their objectives and achieve profits at the expense of the other. However, with mutations and changes of the environment and with the emergence of relational marketing during the 90s, it became imminent to reconsider relationships between producers and retailers and to opt for collaboration and partnership, in terms of long-term, value-creating and mutually-beneficial relationships.

These relationships offer the different players an opportunity to create strategies and reach important performances Frazier et al. Relational orientation, mainly within distribution channels DCremains a domain relatively less explored and its examination raises some controversies Lepers, Review of literature shows a disagreement on its evolution Shadev, ; Zolkiewski, What are the variables that condition implementation of a relational orientation within distribution channels? In this paper, we first present the evolution of the analysis of exchanges within distribution channels.

Then, we survey the relationships between relational norms and relational orientation, and discuss the mediating role of trust and address a conceptual framework of what determines relational orientation.

Finally, we conclude with some implications. The Transition from a Transactional Approach to a Relational Approach within Distribution Channels Reviewing research focusing on studying exchanges within distribution channels shows an evolution of the analytical framework and disagreement in perspectives studying these systems Table 1.

First, it is from an economic perspective that exchanges between channels are studied. Economic proposals point to minimising costs as a way of coordinating between middlemen and to seeking selfish interests through opportunistic behaviour Willamson, Transactions and players are considered independent from each other and the relationship ends once the transaction ends. However, this line of thinking seems to be restrictive Jeanmougin, They adopt a short-term transaction of exchanges and ignore the social and relational dimensions.

Moreover, the social approach came to uphold the limitations of the classic economics schools by considering distribution channels as a social system governed by psychological and behavioural aspects Robicheaux and El Ansary, ; Stern and El Ansary, Behaviourist models essentially focused on two behavioural variables, power and conflict, as basic concepts for the study of exchanges within DC Gaski, ; Gaski and Nevin, Nevertheless, the temporary version of these models remains limited in time.

Channels are considered competitors and there is no research devoted to examining development of relationships in time. With the integrative paradigm, the politico-economic model of Stern and Revethere is the joint consideration of the economic and sociological impulses.

This paradigm offers a foundation for comprehending construction, development, maintenance and advancement in time inter-organisational relationships Arndt, It reveals aspects of the relationships dynamics among each other within the DC, stands as the foundation of inter-firm relational approach and sets the transition from transactional marketing to relational marketing. Indeed, with relational marketing, exchanges are considered as a succession to independent transactions deprived from any social dimensions.

There is independence between intervening parties, its end is planned and it is integrated within a line of thinking based on confrontations between players Bagozzi, ; Dwyer et al. However, in relational marketing, exchanges represent a set of inter-related repeated transactions.

It is considered as a continuous temporary process Morgan and Hunt, ; Berry, Moreover, exchanges go beyond its intrinsic nature to reach a social dimension Arndt, ; Dwyer et al. Within this relational perspective, the relationship is considered of much importance and interdependence is more pronounced Kumar et al.

Analysis of Exchanges within Distribution Channels: They represent an interesting way of comprehending relationships within distribution channels and assimilating reasons behind development of relational exchanges. According to Macneilinter-firms exchanges are influenced by norms. Ten contractual norms, qualified as common are essential to conduct any exchange.

Some are specific to transactional exchanges, others relate mainly to relational exchanges. Variables Related to Relational Orientation Relational norms represent behaviours produced during relationships and which should be produced if the relationship continues in time Macneil, These norms guide exchanges between independent firms and play an important role in developing close and long-term relationships Heide and John, ; Sezer and Yilmaz, Relational norms have been subject of extensive research.

Nevertheless, examining this research shows many disagreements. Review of the literature show that these norms are sometimes considered as independent variables Gundlach et al. Other authors consider them as mediating variables Lin et al. Moreover, there is a visible disagreement on the state of these norms and then on the number of relational norms which determine setting up a relational orientation.

Macneil counts 5 relational norms essential to relational exchnages and which are: Most researches on channel models start in circulation and trade cost. This perspective is chosen by most scholars who assume to build circulation system of forest products based on analyzing transaction cost and expenses. Recent years, the number of scholars who research the forest channel in the perspective of relation in sociology is becoming larger as relation is concerned widely as a culture that is praised highly by Chinese in recent years.

Reviewing Important Literatures and Basic Points Commitments belong to the concept of relational channel and the channel relation means contact state, cooperation, companion and alliance among each member with business in a common channel. The development process is: We call the three latter as relational channel relation and the first transactional channel relation. Relational channel relation focuses on building and developing cooperation among channel members and takes solving these relations correctly as the core of the channel.

It aims at improving the quality and efficiency of the channel, starts from the point of cooperation, two-to-win and communication and emphasizes the control of marketing channel. Usually marketers play the role of a relational manager: This kind of channel is characteristic of coordination, two-way information communication and marketing reciprocity.

After analyzing literatures it is found that research on relational channel mainly concentrate on the following four factors. For example, retailers in a relational channel could take competitive advantages in supply, product popularization and promotion allowance, suppliers could take the advantage in getting market information and special product popularization. In a word, the relational channel could enhance the performance [2] [3]. The Management of a Relational Channel In view of the importance of channel relation scholars start to study how to maximize its performance by the effective management of channel relation.

relationship marketing and distribution channels weitz

From the perspective of sociology, economic and organizational behavior they quoted some conception and theories and advanced many theories on channel relation [4]. For example, quoted the research findings from study fruits of economics the resource-depend theory mainly research the channel power and its structure with the opinion that channel relation could be divided into different level to manage and guide by analyzing power origination. This theory gives some bases to people for explaining relational behavior among the channel.

The Influence Dimensions of Relational Channel On this point there are a branch formed the centre of trust and satisfaction and the other with the centre of trust and commitment [5]. Kim [6] thought commitment was the core variable needed to consider in building channel relation, which meant the leak-tightness of commercial joints between an enterprise and channel members.

Morgan and Hunt [7] researched and thought that continuous transactional relation is remarkable for trust, commitment and satisfaction.

An Explanatory Model of Relational Orientation within Distribution Channels: A Conceptual Framework

Heide [8]Barton A. Weirz and Sandy D. Jap [3] thought that the key variables of trust and commitment were the important factors for the influence of channel relation, that the essence of commitment is stabilization and abandon, that commitment meant a long-term relation guidance and rather realizing mutual long-term development even with the loss of the short-term profits for both [9].

Morgan and Hunt [7] advanced that such factors as mutual value, relational profits expectation, communication, the cost of relation cease and opportunism are the decision ones of building the instruction of the relation between trust and commitment. All headings should be in bold face. Second-level subheadings should be set flush left with initial caps and not numbering. Please do not use headings other than these two types.

At least one-line space should separate these headings from the preceding text. Channel Patterns and Models Now study on channel patterns and models mainly consist of two branches: In a study on insurance industry from the perspective of interpersonal relation Crosby, Evans and Cowles [10] built Relational Quality Model to explain the relation formed between salesmen and customers.

So trust and satisfaction is believed the composition of relational quality and to determine sales fruits and the future relation. Taking motor-tire industry as research subject Morgan and Hunt [7] advanced KMV model applying to the relation between enterprises in order to build a complete structure of channel relation.

As a channel had been with both trust and commitment its efficiency would be improved. Namely a relation with good quality was built directly for trust and commitment and the good quality would cause successful marketing.

relationship marketing and distribution channels weitz

KMV model greatly influenced the study on channel relation model, after them there were lots of scholars who deepened and extended KMV model. From the above it is obvious that study on channel relation has been deepening and with lots of fruits. But existing theories are not perfect. So this paper is concerned on what relation between the choice of channel model of forest products and commitment level. Dwyer, Schurr, and Oh [12] thought that commitment was important guarantee to maintain channel relation and important factor to gain long-term channel relation because commitment meant mutual willing to gain long-term profits at the cost of giving up short-term profits.

Relationship marketing and distribution channels - Technische Informationsbibliothek (TIB)

Channel members all expect their value relation with continuity. This paper supposes that the value of channel relation causes both sides of value relation expect for continuity and both sides are willing to specifically invest relation and it will cause an effect Lock-up and tighten channel relation.

Dwyer Schurr and Oh [12] thought rising switch cost would promote channel members to strive for improving the quality of channel relation. Because of switch cost, assets investment is hard to transfer into other channel. Morgan and Hunt [7] thought switch cost would occur if terminating a channel relation. Therefore, channel members are declined to maintain long-term channel relation for reducing or avoiding switch cost. Bargaining power is an important variable in determining commitment level in channel inner system.

Generally, bargaining power will be reflected through self scale, brand influence, market status and the creation of economical value. The larger self scale, the higher market status and the greater economical value creation, the stranger bargaining power.