Fostering Relational Exchange with the Internet

1
Fostering Relational Exchange with the Internet

• The increasing importance of relational exchange
• The Internets impact on relational exchange in
  B2B and B2C markets

2
The Importance of Growing Relationships

• The Internet and 11 marketing
• Goal of creating unique relationships
• From share of market to share of customer
• Illustrated by four shifts
• Products to People (accountability,
  addressability)
• Competition to Cooperation (strategic alliances)
• Standalone to Networked (interactivity)
• Transactions to Relationships (resource exchange,
  collaborative orientation)

3
Measuring Relational Value

• Behavioral and psychological measures
• Behavioral
• Number of transactions
• Frequency of transactions
• Types of facilitating activities
• Psychological
• Satisfaction
• Trust
• Commitment

4
Developing B2C Relationships

• Relational exchange as a decision process
• Prepurchase search and satisfaction
• Software agents pricingcentral, mysimon, julia
• Purchase transactions and trust
• Payment systems u.are.u
• Postpurchase complaints and commitment
• Justice theory for complaint handling starbucks
• Procedural, interactional, distributive

5
Developing B2B Relationships Environmental
Effects

• Business relationships help manage environment
  challenges
• Supply market characteristics
• Availability of other sources
• Variability of supply sources
• Situational characteristics
• Supply complexity
• Supply importance

6
Developing B2B Relationships Dimensions of
Relationships

• A framework for describing relationships (from
  Cannon and Perreault, 1999)
• Types of relationships organized by relationship
  connectors
• Operational processes for exchange
• Info. exchange, cooperative norms, operational
  linkages
• Structural forms of exchanges
• Legal bonds, buyer and seller adaptation

7
The Internets Impact Reactive

• Internet affects supply market
• E.g., ease to locate alternative sources
• E.g., ease to communicate can locate better
  prices
• E.g., difficulty to discern seller identity
  (e-hub)
• Internet affects supply complexity
• E.g., buyer-supplier interaction ? product
  re-design
• E.g., ease to locate supplier with more adaptive
  manufacturing capabilities

8
The Internets Impact Proactive

• Businesses use the Internet to encourage
  relationship connectors
• E.g., buyer gets scheduling info about sellers
  delivery constraint and acts to adjust inventory
  storage to accommodate seller, or choose another
• E.g., sellers tailor product offerings to
  increase dependence and switching costs for
  buyers
• E.g., sellers create extranets to automate re-buy
  processes