Commitment and Trust in Cross-National Channel Relationships

Abstract

Cross-national channel relationships are becoming increasingly important, so it is time for research in the channels literature to continue beyond a focus of channel relationships within a single country or channel design for market entry. The author presents a model of commitment in cross-national manufacturer-distributor relationshipsthat extends the commitment-trust theory of relationship marketing by incorporating four constructs conceptualized to represent the influence of a firm's current and prospective partners on the focal relationship: resource transferability-to partner; resource transferabil-ity-from partner; resource particularity-adaptation and resource particularity-consumption. Data collected from 143 U.S. manufacturers, 106 Mexican manufacturers, and 97 Mexican distributors show that the model generalizes across this national boundary. In particular, a similar influence of mutuality on trust and trust on commitment was observed for both manufacturers and distributors. The influence of resource transferability, particularity on the relationship, was also observed. The findings provide strong support for extending the commitment-trust theory to aid the study and management of cross-national channel relationships.     

Finding critical success factors for virtual community marketing

Previous studies have identified critical success factors related to using virtual communities as a marketing channel. These studies have followed two research trends that connect the virtual community to actual purchasing. One is finding relationships between the operational elements of a virtual community and members’ intent to purchase and the other is finding relationships between characteristics of virtual community members and their intent to purchase. The model for this study reflects both trends. In addition, the model reflects research related to factors of customer satisfaction and the measurement of marketing success in terms of sense of community and loyalty. Conclusions from this research have been verified empirically with survey data collected from 292 virtual community members representing nine profit-oriented virtual communities. This study confirms that operational elements of a virtual community and characteristics of virtual community members affect the success of virtual community marketing. It is also confirmed that perceptions of usefulness, trust, and commitment toward the virtual community are important intervening effects. However, not all factors studied in the model were found to be significant in relationship to successful virtual community marketing. The analysis of the results from this study should be helpful to practitioners who use virtual communities as a marketing channel.     

The relationship between network structure and international channel performance: a moderating effect of E-business activity

This study is an investigation of international marketing channel modes, relationship with an export company's network of business, e-business activity, and marketing channel performance. An initial case study of three international enterprises was followed up with a questionnaire survey based on a model derived from the literature and the results of the case organisations. The main influences identified from the questionnaire survey were local market conditions and the level of cooperation between channel members. The main differences detected among the network's structural relationships resulted from differing degrees of centralisation. Different channel modes resulted in different degrees of mutual trust, centralisation, profitability, and formality in the relationship between an enterprise and its overseas contacts. The level of electronic business activity was positively related to the level of cooperation with channel partners and to the sales performance of the channel.     

A behavioral model of international channel relationships

Purpose: The main purpose of the study is to fill the existing gap in international relationship marketing (IRM) literature by developing and testing empirically a comprehensive conceptual model of firms’ relationship with their marketing channels in export markets. Whereas concepts such as power, conflicts, trust, commitment, and communication have been shown to be related to the economic success of interfirm cooperation in general and buyer–seller relations in particular, the need for a comprehensive model is often expressed in the literature.

Methodology/approach: The authors combine commitment-trust theory with resource-based and knowledge-based view perspectives to develop a new comprehensive conceptual model of firms’ relationship with their marketing channels in export markets. Data from 104 strategic business units in Israel was used to test the model empirically.

Findings: Notably, the model tested explained a higher percentage of the variance in performance. The findings suggest that noncoercive power enhances relationship quality (i.e., communication, trust, and commitment), which in turn improve cooperation and export performance. Conflict had a negative effect on relationship quality. In addition, cooperative conflict management strategies had a positive moderating effect on the conflict— relationship quality link, whereas competitive conflict management strategies had a negative moderating effect on the impact of conflict on relationship quality. Finally, the results suggest that there are strong positive relations between communication and trust and between trust and commitment.

Research implications: The research develops and tests empirically a conceptual comprehensive model of firms’ relationship with their marketing channels in export markets by including major performance drivers. The model incorporates conflict management strategies and combines commitment-trust theory with resource-based view (RBV) and knowledge-based view (KBV), an innovative combination with great explanatory potential. Based on the findings, there is sufficient support for using the suggested model as a new integrative behavioral model that explains channel relationships.

Practical implications: The results indicate that managers should use noncoercive power and cooperative conflict management strategies in order to positively affect relationship quality (i.e., communication, trust, and commitment), which in turn enhances cooperation and export performance.

Originality/value/contribution: The suggested research model presents a novel combination of existing relationship marketing (RM) knowledge with the limited IRM knowledge into a comprehensive IRM model. It includes new relationships beyond those studied before. Integrating and synthesizing results from a large body of conceptual and empirical literature led to the final model. Accordingly, it contributes elements of newness. First, the model includes major antecedents of performance. To the best of our knowledge, this is the most comprehensive model of firms’ relationship with their international marketing channels in export markets. Second, there are almost no studies investigating conflict management strategies neither in RM nor in IRM models. Accordingly, a contribution of this research is incorporating conflict management strategies within the model and analyzing their effects.     

A Stakeholder Perspective on Relationship Marketing

Abstract

This paper proposes a broad framework of relationship marketing using the stakeholder approach. Drawing from Peck et al. (1999) framework and proposing several modifications, the authors identify the following relational groups-supplier markets, customer markets (channels), customer markets (end users), competitor markets, external influence markets, and internal markets. The growing importance of strategic alliances is reflected in all constituent groups as well as in a proposed modification of the Berry and Parasuraman (1991) levels of relationships. This paper also re-examines the strategic role of the traditional marketing mix strategies (namely, product, price, place, and promotion) in the new relationship paradigm. Finally, implementation strategies for the stakeholder markets, in general, and customer markets, in particular, are proposed. Several propositions are derived throughout the paper, many of which can be fertile areas for future research investigations.     

“Relationship marketing” and the “markets‐as‐networks approach”—a comparative analysis of two evolving streams of research

Predating the increased attention by marketing academics on relationship marketing, European marketing scholars developed a network approach to the study of industrial markets that is also based on relationships between seller and buyer as a fundamental concept. This article aims to analyse the similarities and the differences between relationship marketing studies and network studies. After comparative analyses of definitions, empirical and research foundations, attributes related to governance structures and to the marketing mix approach and of major issues addressed in the research agendas, the conclusion is: relationship marketing in its limited interpretation is just a development within the marketing mix approach. Relationship marketing in its extended interpretation is, or rather could become, close to the markets‐as‐networks approach. However the basic attribute in network studies of “embeddedness” is largely missing in relationship marketing. To develop relationship marketing as a generic concept, researchers need to address also the issue of the generic nature of the market. Because when relationships are regarded as the generic governance form for transactions, then the market itself becomes network‐like!     

A model of consumer relationships with store brands,personnel and stores in Spain

Abstract

Relationship Marketing is an important approach to the study of exchanges. This approach puts emphasis on the development of trust, satisfaction and relational norms to obtain parties' commitment. However, there are very few studies that consider the different levels the consumer relates with. Moreover, a limited number of marketing studies include variables that are often used in economic approaches such as signalling theory, which can enrich the understanding of commercial relationships. Therefore, the proposed multidisciplinary model relates economic variables—the signals that firms send to the market—and key relational variables—satisfaction and trust—considering three relationship levels of trust and satisfaction—store brands, personnel and stores. Results show a transference process among the three levels of trust and confirm that satisfaction and signals are important antecedents of each trust level.     

The critical role of trust in obtaining retailer support for a supplier’s strategic organizational change

It is well established in the marketing literature that the bond of trust is a cornerstone of interorganizational relationships. However, trust is considered to be context-specific, as it is difficult to endow on new relationships. We argue that the existing trust between organizations not only survives tough and shifting times, but also helps steer those organizations through such trying periods. We investigated a context where a major change was instituted in a cooperative marketing channel. Here, the supplier (the focal channel member) had to convince the other channel members (the retailers) about the impending merger, which may or may not bring benefits to all. We empirically show the existing trust in the supplier was a major determinant of the support for the merger and inducing the post-merger trust in and commitment to the changed supplier.     

A Stakeholder Perspective for Analyzing Marketing Relationships

This paper proposes a framework that enables the application of stakeholder theory to the analysis of marketing relationships. By distinguishing between different types of stakeholder relationships, stretching from the positive to the negative side of relationships (i.e. the ladder of stakeholder loyalty), and describing the various relational factors (i.e. relationship orientation, trust, communication, learning, power, reciprocity and commitment) that shape a specific relationship, the proposed framework enables marketers to analyze their firm's diverse relationships. The paper provides a meaningful starting point for developing strategies to change the type of relationship with a specific stakeholder.     

Firm-employee relationship strength—A conceptual model

This paper posits a model of firm-employee relationship strength that permits the future measurement of an index of the strength of intra-firm relationships between the firm and the employees of that firm. The relationship marketing literature currently provides no clear direction as to how to represent and measure the strength of firm-employee relationships. The proposed model emerges from an examination of previous marketing and non-marketing literature through exploration of possible concepts to represent measuring strong and productive work relationships, focusing on relationship strength as the construct of interest. The review of the literature on the concept of relationship strength results in the development of an index model of firm-employee relationship strength predicted by cooperation, balanced power, communication, attachment, shared goals and values, trust and the absence of damaging conflict. The article concludes with a list of contributions that the model provides to the relationship marketing literature, as well as suggestions for future research. This includes examination of the impact of the relationship that a firm has with employees on external firm relationships, most particularly with customers.     

On Closeness to the Customer in Industrial Markets

ABSTRACT

Recent years have witnessed a resurgence of academic and practitioner interest in the way companies interact with their customers. While there has been considerable scientific progress in the understanding of market orientation and buyer-seller relationships, limited attention has been given to the concept of closeness to the customer. Specifically, there has been no valid measure of the construct as a whole. This paper reports the development of a valid 28-item measure (called CLOSCUS) for assessing industrial firms' closeness to the customer. The development of the scale is based on a literature review, field interviews as well as statistical analyses of two independent samples from different sides of the buyer-seller dyad. Results indicate that seven factors underlie the 28 items. These are related to product, service, and process quality (two factors), flexibility in dealing with customers (one factor), and the way of interacting with customers (four factors), respectively. Based on the CLOSCUS scale, closeness to the customer is shown to impact on a customer's commitment, trust, and satisfaction. It is also demonstrated that closeness to the customer is both conceptually and empirically distinct from market orientation which contradicts some marketing researchers' prior statements. The paper concludes with some experiences from applications of the scale in a number of German companies.     

The impact of national culture and communication on exporter–distributor relations and on export performance

Interorganizational relations have been a major focus of marketing scholars in the past 2–3 decades. In this study, we explore the impact of national cultural differences, a factor that is unique to international relations, on behavior variables in exporter–foreign middleman relations. Furthermore, we argue that communication has an extended role in international channel relationships, and that it influences relationship variables in a different manner than in domestic relationships. The study supports that national cultural distance and communication have significant impact on trust and commitment, that communication may influence variables differently than in domestic relations, and that the degree of commitment toward the foreign distributor or agent is directly related to the financial performance in that market.     

The effect of trust on customer contact personnel strategic behavior and sales performance in a service environment

The involvement of customer contact personnel in the strategy process is a largely unexplored area in both marketing and strategic management. Based on social exchange theory, and in particular, the notion of trust within this context, we examine the nature and extent of strategy participation exhibited by customer contact personnel. Exploring dyadic relationships we found that the extent to which contact personnel trust their supervisors positively influence their willingness to participate in strategic activities. Furthermore, we found that communication and information sharing moderate the relationship between trust and strategic activities. Thus, the more contact personnel are involved in the strategic process, the more likely supervisors are to rate the contact person's selling performance as high.     

Trust as a Mediator of Channel Power

Abstract

Thriving longterm channel relationships require trust. Previous empirical work and metaanalysis have emphasized the central role of trust but its potential as a mediator of power has not been tested empirically. A model is proposed that hypothesizes a central, mediating effect for trust between power constructs (power asymmetry, coercive and noncoercive application of power) and key behavioral and attitudinal relationship outcomes (conflict, cooperation and satisfaction). The model is tested on a large sample (N = 887) in a single channel where there is a variable, but generally asymmetric, power relationship between principal and agent, as exists in many franchise and agency channels. Trust was not affected directly by the level of power asymmetry, but rather the way power was used, either coercively or noncoercively raised or lowered trust. Trust was found to mediate the impact of the way power is used on the agent's perception of cooperation, satisfaction, and conflict, emphasizing the pivotal role of trust in understanding the behavioral aspects of channel behavior.     

Multilevel trust in international marketing of healthcare services: A five-country comparative study

PurposeThis research aims to increase understanding on how multilevel trust is developed as well as how trust levels are interconnected and influence international marketing strategy for healthcare services.Design/Methodology/ApproachA comparative case study approach was applied with Elekta, a Swedish firm, operating in Brazil, the Philippines, China, Russia, and Hong Kong.FindingsThe research culminated in a multilevel trust (MLT) model comprised of three levels relating to individuals, company performance, and context.Research implications/limitationsThis study offers a context-based multilevel trust model from a process perspective focusing on healthcare. This model can be tested in other service sectors.Practical implicationsManagers should consider multilevel trust to boost relationships and achieve local acceptance.Originality/ValueThis research contributes to trust theory by constructing a context-based multilevel trust model for international healthcare marketing.     

Relationship Marketing and the Challenge of Dialogical Interaction

SUMMARY

Our aim in this article is to challenge relationship marketing's hidden monological assumptions, and as a redress, position dialogical interaction at its core. First, we reflect on the common sense of ‘marketing communication’. Next, we clarify the concept of ‘dialogue’. We then comment on the concept of dialogue in markets, building on Karl Popper's idea of an open society, followed by scrutiny of general marketing practice to show that such dialogue is absent. We then consider the potential for marketing to be dialogical in nature. To do this we will make a necessary distinction between informational interaction, communicational interaction, and dialogical interaction. Finally, we draw the conclusion that dialogue is not so much a method of communication but an orientation to it, and consider some implications for marketing theory and practice.     

Building Relationships From the Outside In: A Case Study of Falken Tire's Drift Toward Success

This article explores a unique application of relationship marketing and commitment-trust theory through “outside-in” channel development. Necessitated by market conditions and competitor size and influence, the case company lacked the financial strength and credibility to compete head on to drive awareness from key channel members. Findings demonstrate how out-of-the-box thinking, entrepreneurial risk taking, and creative event marketing allowed a small market player to establish, build, and ultimately extend relationships with both indirect and direct channel partners from the outside in. This case provides guidance for relationship marketing efforts through the use of event sponsorship and social media strategies.     

Trust,Commitment, and Older Women: Exploring Brand Attachment Differences in the Elderly Segment

Understanding older adults’ product consumption behavior is of high importance to consumer and marketing research. Prior studies have mainly focused on older adults’ cognitive decline and compared their behavior to that of younger consumers. A neglected area of research has been older consumers’ brand attachment that is associated with potential differences between consumers in their fifties and in their seventies. In this article, the authors provide insights into the under‐researched field of elderly women's brand attachment. Drawing on socioemotional selectivity theory, a shift toward emotional aspects in brand relationships is proposed. A model involving trust and commitment processes is developed and empirically tested in a survey among 341 older women. Moderator analyses reveal significant differences between the “younger elderly” and the “older elderly” in relationships among self‐concept connection, partner quality, trust, and commitment. For the younger elderly, how a brand is (based on trust judgments) seems to be more important. For the older elderly, what a brand does in its role as relationship partner becomes more relevant.     

Perceptions of the Environment and Wholesaler Structure in a Channel of Distribution in a Developing Country

Abstract

This study explores relationships between perceptions of the technological environment and selected structural variables of wholesalers in the channel of distribution for petroleum products in a developing country from a systems theory perspective. Survey research was used to collect primary data related to technolgical environment factors and size, assortment structure, and market coverage of wholesalers of petroleum products in Nigeria. Canonical correlation analysis was used to assess the relationships between constructs. From a theory development perspective, the study explores the applicability of systems theory concepts to an important marketing area. From a managerial standpoint, the study has implications for international marketing managers concerned about the nature of specific aspects of the business environment in newly emerging third world markets.     

Relational Bonds and Customer's Trust and Commitment - A Study on the Moderating Effects of Web Site Usage

Several relationship marketing theories have suggested that businesses could build long-term customer relationships. The purpose of this study is to develop relational bonding strategies for a financial service business and examine the relationship between the various relational bonds and customer trust and commitment under the moderating effects of corporate website usage. The findings of this study are threefold. First, the relational bonds that foster customer trust and commitment can be categorised empirically into three types: economic, social and structural bonds. Second, all of these bonds are significantly positively correlated with the customers' trust and commitment. Finally, customer use of a corporate website significantly moderates the relationship between the relational bonds and customer relational performance.