Andrew D. Pressey

Barriers to relationship marketing in consumer retailing

This study focuses on the potential difficulties in implementing a relationship marketing strategy within a retail context. We suggest that a number of attributes characterise the nature of the service and market structure are influential in an organisation’s ability to implement relationship marketing. Specifically, these are balance of power; level of involvement with the purchase; professionalism of the service provider; and level of personal contact. Seven dimensions central to relationship marketing in a retail context are derived from the literature. Via survey research, these are evaluated in four service contexts, namely: hairdresser/barber; optician; recreation centre; and supermarket. Findings indicate that because of the influence of the four factors identified above, hairdressers, opticians, and recreation centres are more likely to operate in conditions that give greater support to the development of relationship marketing.

Jumped, Pushed or Forgotten? Approaches to Dissolution

Not all relationships are destined to last. Although the literature offers a range of causes of dissolution in buyer-seller relationship no clear framework of dissolution categories or company behaviour for each category has been developed. This study takes a conceptual and empirical look at relationship dissolution and offers a typology of dissolution categories. A qualitative approach drawing from nine in-depth interviews of managers of long-term buyer-supplier relationships confirmed that dissolution falls into one of four categories: voluntary dissolution (bilateral agreement to terminate relations), unilateral involuntary dissolution by either buyer or supplier (customer de-selection/supplier de-selection), and bilateral involuntary dissolution (a fading away of relations). Different exit communication styles were employed for each category of dissolution. Voluntary decisions to terminate relations are likely to be communicated by direct but amicable means indicating a potentially revocable state of dissolution. Customer de-selection and supplier de-selection dissolution types tend to be much more covert with one party either undermining the relationship or else blaming the other for problems, often leading to hostility between the parties and largely irrevocable future relations. The fourth type, fading away, is characterised by a lack of positive action and communication by either party. The implications for the four quadrants of dissolution are considered and in addition to offering a number of propositions the management of dissolution in order to encourage revocable/amicable dissolution is explored.

Customer value creation in professional service relationships: the case of credence goods

Understanding the sources of customer value in buyer–supplier relationships is viewed as a competitive priority and a key component in a firms long-term survival. This said, however, research examining relationship value is still at a formative stage. This is particularly the case for professional services – which are often characterised by their credence qualities being high in both information asymmetry and perceived risk, and often requiring the provider to determine the needs of the customer – where research exploring customer value is non-existent. This study examines the dimensions of customer value in professional services relationships with credence qualities (commercial insurance) through in-depth interviews with organisational buyers and front-line staff conducted in two separate studies. Six dimensions of customer value are identified and implications for theory and practice are offered.

Buyer‐supplier relationship dissolution: the Chinese context

Purpose – This paper aims to examine the characteristics of buyer‐supplier relationship dissolution in China.Design/methodology/approach – The paper presents the results of nine in‐depth interviews of Chinese managers of dissolved long‐term business relationships.Findings – The paper finds that it is common in China for relationships to have a transferable “energy” after the dissolution of a relationship due to the guanxi that exists between individuals prior to dissolution. It is also common for dysfunctional relationships to “fade away” so as not to lose “face” for a business partner or damage any guanxi developed by abruptly ending relations. Additionally, a characteristic of dissolution in China is the involvement of a third‐party (an individual who introduced subsequent business partners), who would often then play an active role in the dissolution of the relationship.Research limitations/implications – The findings are based on data from managers in private enterprises with no examination of state‐o...

Strategic purchasing and the evaluation of 'problem' key supply relationships: what do key suppliers need to know?

Purpose – Previous research has reported that the adoption of a strategic purchasing orientation (SPO) requires closer relationships with key suppliers and greater long‐term planning in supply management. This paper aims to develop a generic framework for the evaluation of key supply relationships incorporating seven key categories and to empirically test these assumptions by comparing firms reporting high levels of strategic purchasing to those with low levels.Design/methodology/approach – The data collection employed a mail survey sent to the senior manager responsible for purchasing in their organisation (n = 50).Findings – The article finds that high SPO firms more closely scrutinise their supply relationships across a broad range of attributes, and, as well as perennially important issues such as quality and delivery, they emphasise “fit” between buyer and supplier (e.g. fit with the competitive strategy and organisational culture of the buying firm) as an important criterion in identifying failing r...

Collaboration and collective learning: networks as learning organisations

Purpose – Firms collaborate for many reasons; however, sharing resources would seem a primary motive. This paper seeks to argue that in many instances firms collaborate to become part of a knowledge network – to learn about their industry and collectively use their knowledge to serve their own customers more effectively in a competitive environment.Design/methodology/approach – This is a conceptual paper; however, the authors illustrate the work with examples from the automotive industry.Findings – The authors conclude that it is necessary to expand traditional approaches to understanding networks to include the nature and purpose of the interactions between the firms, as well as the structural features of the network and the development of shared meaning and consensus among the network participants.Research limitations/implications – The authors demonstrate the need to take a broader view of learning and collaboration in networks.Practical implications – The automotive and other industries are beginning ...

Lighting up the “dark side” of international export/import relationships: Evidence from UK exporters

It is widely held that long‐term relationships between buyers and suppliers are beneficial for both parties. This view has become axiomatic in contemporary management. However, little empirical evidence exists to support the benefits of long‐ versus short‐term relationships. This study examines the degree to which export relationships can be sustained over time, thus producing mutual benefits for the parties involved. The perceptions of 212 UK export managers from a broad range of industrial sectors were obtained. Using relationship duration as a categorising variable four groups of international relationships were examined based on relationship elements (e.g. trust, commitment) and performance components (e.g. relationship costs, value). The findings reveal that there is some weakening of the relationships over time as is illustrated in terms of the reduced level of affective commitment; however, perceptions of competence and performance show signs of significant increase. Further, the findings indicate that exporters in relationships with a high relational content (e.g. trust, commitment) generally achieve higher than average performance outcomes. Long‐term relationships do indeed suffer from a “dark side”; however, this is lightened by a mutual appreciation of competencies that enable sustained performance.

Regulatory Perceptions of Marketing: Interpreting U.K. Competition Authority Investigations from 1950 to 2005

This study quantifies the link between marketing and rulings on competition or antitrust law made by U.K. competition authorities. To determine whether differences in competition systems influence how marketing actions are interpreted by a European Union competition agency, the authors conduct a comprehensive examination of U.K. competition rulings from 1950 to 2005. Business activities judged to be permissible in the United States and anticompetitive acts in the United Kingdom and European Union occur frequently and are closely linked to marketing behaviors in U.K. competition investigations. The authors conclude that marketers in international firms need to develop a greater awareness of different national competition law systems and to contribute more to the ongoing discussion about the present and future form of competition policy.

Relationship Marketing: Theory, Applications and Future Research Directions

Morgan and Hunt (1994) defined relationship marketing as “all marketing activities directed toward establishing, developing and maintaining successful relational exchanges” (p.22). At the most simple level, a strategy that prescribes attention and investment to developing long-term relationships with customers and other stakeholders could result in a better understanding of each others expectations and concerns. This, in turn, could provide competitive advantage for the firm by aligning the firm’s products and services to the ‘voice’ of their customers. Additionally such a strategy would allow close bonds to be developed between the firm and its customers as well as other stakeholders, which can form further bases for competitive advantage. Direct benefits for customers would accrue from products and services which are better aligned to their individual needs and wants. Despite its obvious appeal, relationship marketing can be a difficult concept to comprehend and implement. On the one hand, researchers find it difficult to agree on what constitutes a long-term relationship with a customer or a stakeholder, or indeed if a close relationship is always desirable or possible. As such they find it hard to develop universally agreed strategies for implementing relationship marketing. On the other hand, practitioners using information technology and associated customer relationship management software report that the anticipated benefits of the relationship marketing approach have failed to materialise. Finally, a lack of research on whether or not customers have received any benefits from this ‘new’ approach to marketing does not allow us to determine its usefulness from the customers’ viewpoint, despite the fact that this is the ultimate test for its ability to deliver value for both the firm and its customers. Current debates about ‘intrusion of privacy’ and ‘consumer cynicism’ further outline the need for more research from the customers’ viewpoint. All of the above contributed to developing a successful proposal for an ESRC Seminar Series in Relationship Marketing. The seminar series aimed to reduce the current confusion in the area of relationship marketing by offering a forum for useful dialogue on its development and implementation. The specific objectives of the seminar series were to:

Forgotten classics: Advertising in a Free Society, by Ralph Harris and Arthur Seldon (1959)

Purpose – The purpose of this paper is to review Advertising in a Free Society – a defence of the advertising industry – by Ralph Harris and Arthur Seldon, and to evaluate its status as a justifiable forgotten classic of the marketing literature. Design/Methodology/Approach – Advertising in a Free Society is placed in historical context (the Cold War), summarised and reviewed. Findings – During the 1950s, as the UK experienced a period of affluence and growing consumerism, the advertising industry was again subject to the criticisms that had been levelled at it by influential scholars in the late nineteenth and early twentieth centuries. Against this context, Advertising in a Free Society deserves to be remembered as one of the earliest defences of advertising and remains highly relevant. Harris and Seldon were leading figures in the Institute of Economic Affairs (IEA), joining shortly after its inception, which became an influential group both in the UK and abroad, influencing policy on free markets. Ori...