Developing Buyer-Seller Relationships

Abstract

Marketing theory and practice have focused persistently on exchange between buyers and sellers. Unfortunately, most of the research and too many of the marketing strategies treat buyer-seller exchanges as discrete events, not as ongoing relationships. The authors describe a framework for developing buyer-seller relationships that affords a vantage point for formulating marketing strategy and for stimulating new research directions.

The long good-bye: The dissolution of customer-service provider relationships

“…Within the marketing literature, research also portrays the customer-service provider relationship as a process (Bolton, 1998;Dwyer, Schurr, & Oh, 1987;Liljander & Strandvik, 1995). Dwyer et al (1987), consistent with some of the interpersonal relationship models discussed previously (e.g., Duck), propose that a service relationship is a process consisting of five distinct stages -awareness, exploration, expansion, commitment, and dissolution. Although a significant amount of the services literature focuses on the development and maintenance of service relationships (Bendapudi & Berry, 1997;Crosby, Evans, & Cowles, 1990), a lesser amount examines the dissolution stage.…”

“…Indeed such changes often mean that certain barriers that once constrained or dictated an individual's relationships have changed (Levinger, 1994). Research has also demonstrated that switching costs preempt consumers and businesses from changing their providers and suppliers (Bendapudi & Berry, 1997;Dwyer et al, 1987;Heide & John, 1988;Morgan & Hunt, 1994). Further changes in life roles and life status can also have an impact on personal choices and behaviors (Andreasen, 1984;Cantor & Kihlstrom, 1987).…”

“…The dissolution models, as well as the satisfaction/dissatisfaction literature, discuss consumers complaining or voicing behavior with dissatisfactory experiences and relationships (Dolinsky, 1994;Dwyer et al, 1987;Ping, 1993;Richins, 1987;Singh, 1990aSingh, , 1990b. Our informants exited their relationships in one of three ways -actively by confrontation, passively by writing a departure letter, or without notice, for example, not making another appointment.…”

“…Two factors seem to account for a majority of these psychological switching costs. First, our informants struggled with leaving service providers with whom they had extended relationships, some of which involved social bonds (Dwyer et al, 1987;Perrien et al, 1995). Second, several of our informants were conflicted because they lacked confidence and did not think they were able to make good choices among service providers in a particular industry, for example, medical care and financial services.…”

Market exit and barriers to exit: Theory and practice

“…The company ignored the student's first letter and responded to the second, indicating financial reasons and having other shampoos in the market. Dwyer, Schurr, and Oh (1995) draw parallels between termination of personal relationships and the dissolution of commercial relationships in that both involve psychological, emotional, and physical stress. Duck (1982) indicates that dissolution begins with an intrapsychic stage when one party privately evaluates his or her dissatisfaction with the other party and concludes that the cost of continuation or modification outweighs benefits.…”