Developing Buyer-Seller Relationships: F. Robert Dwyer, Paul H. Schurr, Sejo Oh
Developing Buyer-Seller Relationships: F. Robert Dwyer, Paul H. Schurr, Sejo Oh
Developing Buyer-Seller Relationships: F. Robert Dwyer, Paul H. Schurr, Sejo Oh
Developing Buyer-Seller
Relationships
Marketing theory and practice have focused persistently on exchange between buyers and sellers. Un-
fortunately, 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.
Journal of Marketing
Vol. 51 (April 1987). 11-27. Developing Buyer-Seller Relationships / 11
change relationships in industrial and institutional . tions are characterized by very limited communica-
markets, but the notion of relationship management tions and narrow content. The identity of parties to a
may also apply to consumer markets. Arndt's exten- transaction must be ignored or relations creep in. A
sive list of relational bonds in business marketing con- one-time purchase of unbranded gasoline out-of-town
trasts with his seemingly perfunctory illustrations of at an independent station paid for with cash approx-
consumer relations: ". . . consumer cooperative so- imates a discrete transaction.
cieties in Great Britain and Scandinavia, . . . book
or record clubs, season tickets for sports and the arts, Re~tionalExchange
and, in a way, subscriptions to newspapers and mag- It is the departure from the anchor point of discrete-
azines, and credit cards" (p. 71). Let us take note of ness that underlies a strong customer franchise (or,
other pervasive consumer behaviors: frequent flyer from a buyer's standpoint, a reliable team of sup-
programs, church and professional club memberships, pliers). We posit that a strong customer franchise (or
personal service patronage (lawyers, barbers, physi- supplier base) depends on the nature of the relational
cians), and the implicit bonds that underlie brand loy- contract between a buyer and seller.
alty. Thus, both business marketing and consumer Macneil (1978, 1980) differentiates discrete trans-
marketing benefit from attention to conditions that foster actions from relational contracts, relational exchange,
relational bonds leading to reliable repeat business. along several key dimensions. Most important is the
fact that relational exchange transpires over time; each
transaction must be viewed in terms of its history and
Objectives its anticipated future. The basis for future collabora-
Our principal goal is to outline a framework for de- tion may be supported by implicit and explicit as-
veloping buyer-seller relationships. First we briefly sumptions, trust, and planning. Relational exchange
contrast discrete and relational exchange using con- participants can be expected to derive complex, per-
cepts from modem contract law. Because the contract sonal, noneconomic satisfactions and engage in social
law conception of discrete exchange is an idealized exchange. Because duties and performance are rela-
fiction, we suggest problem areas and issues where it tively complex and occur over an extended time pe-
seems judicious either to overlook or underscore re- riod, the parties may direct much effort toward care-
lational dimensions. We rely on Macneil's (1980) fully defining and measuring the items of exchange.
provocative work to suggest what relational properties Third parties may be called in to adjudicate, and other
may be of consequence in buyer-seller exchange. Then, customized mechanisms for collaborating and resolv-
after brief conjecture about the benefits and costs of ing conflict may be designed.
relational exchange, we propose a five-phase model Table 1 summarizes Macneil's characterization of
by which relationships are formed. Utilizing the work discrete and relational polar archetypes of exchange
of Scanzoni (1979), Thibaut and Kelley (1959), and on 12 contractual dimensions. Consistent with the
other exchange theorists, we emphasize hypothesized preceding discussion, for example, a consumer might
transitions and key distinctions between phases. Fi- buy peaches at farmers' market or a grocer may buy
nally, we pivot on the framework to propose a mar- bags in quantity from any of several sources. The
keting research agenda and outline three key facets of products can be easily evaluated, paid for with cash,
managing buyer-seller relationships. and carted away. There is no prolonged negotiation,
paying cash for the goods consummates the transac-
tions, and the mutual dependence situation quickly
Discrete and Relational Exchange ends. All situational and process characteristics ap-
proximate a discrete transaction.
Discrete Transactions
Table 1 suggests that relational aspects start to ap-
The idea of a discrete transaction is the foundation on pear when the buyer pays by check or the seller sched-
which concepts of relationship are built. According to ules delivery for next week. That is, dependence is
Macneil (1980, p. 60), the archetype of discrete trans- prolonged, performance is less obvious, uncertainty
action is manifested by money on one side and an leads to deeper communication, the rudiments of co-
easily measured commodity on the other. operative planning and anticipation of conflict arise,
Discreteness is the separating of a transaction from
and expectations of trustworthiness may be cued by
all else between the participants at the same time and personal characteristics.
before and after. Its [pure form], never achieved in Though a detailed review of Macneil's dimensions
life, occurs when there is nothing else between the is beyond the scope of our article, Table 1 serves two
parties, never has been, and never will be.
important purposes. First, it dramatizes the multidi-
Notice that the concept of discrete transaction specif- mensionality of exchange. Within marketing, our
ically excludes relational elements. Discrete transac- eventual needs for theory and practice may require
Situational characteristics
Timing of exchange Distinct beginning, short duration, Commencement traces to previous
(commencement, duration, and and sharp ending by performance agreements; exchange is longer
termination of exchange) in duration, reflecting an ongoing
process
Number of parties (entities taking Two parties Often more than two parties
part in some aspect of the involved in the process and
exchange process) governance of exchange
Obligations (three aspects: sources Content comes from offers and Content and sources of obligations
of content, sources of obligation, simple claims, obligations come are promises made in the relation
and specificity) from beliefs and customs plus customs and laws;
(external enforcement), obligations are customized,
standardized obligations detailed, and administered within
the relation
Expectations for relations (especially Conflicts of interest (goals) and little Anticipated conflicts of interest and
concerned with conflicts of unity are expected, but no future future trouble are
interest, the prospects of unity, trouble is anticipated because counterbalanced by trust and
and potential trouble) cash payment upon instantaneous efforts at unity
performance precludes future
interdependence
Process characteristics
Primary personal relations (social Minimal personal relationships; Important personal, noneconomic
interaction and communication) ritual-like communications satisfactions derived; both formal
predominate and informal communications are
used
Contractual solidarity (regulation of Governed by social norms, rules, Increased emphasis on legal and
exchange behavior to ensure etiquette, and prospects for self- self-regulation; psychological
performance) gain satisfactions cause internal
adjustments
Transferability (the ability to Complete transferability; it matters Limited transferability; exchange is
transfer rights, obligations, and not who fulfills contractual heavily dependent on the identity
satisfactions to other parties) obligation of the parties
Cooperation (especially joint efforts No joint efforts Joint efforts related to both
at performance and planning) performance and planning over
time; adjustment over time is
endemic
Planning (the process and Primary focus on the substance of Significant focus on the process of
mechanisms for coping with exchange; no future is anticipated exchange; detailed planning for
change and conflicts) the future exchange within new
environments and to satisfy
changing goals; tacit and explicit
assumptions abound
Measurement and specificity Little attention to measurement and Significant attention to measuring,
(calculation and reckoning of specifications; performance is specifying, and quantifying all
exchange) obvious aspects of performance, including
psychic and future benefits
Power (the ability to impose one's Power may be exercised when Increased interdependence increases
will on others) promises are made until promises the importance of judicious
are executed application of power in the
exchange
Division of benefits and burdens Sharp division of benefits and Likely to include some sharing of
(the extent of sharing of benefits burdens into parcels; exclusive benefits and burdens and
and burdens) allocation to parties adjustments to both shared and
parceled benefits and burdens
over time
"Adapted from Macneil (1978, 1980).
Relationship
phase Phase characteristics
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