Value synergy and value asymmetry in relationship marketing programs

Luu, Ngoc, Ngo, Liem and Cadeaux, Jack (2017) Value synergy and value asymmetry in relationship marketing programs. Industrial Marketing Management, 68. pp. 165-176. ISSN 0019-8501

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Abstract

Prior research advocates a positive, linear association between relationship investments and relationship performance. Our study challenges this conventional wisdom and advances the extant literature by investigating the potential curvilinear effects of suppliers' different relationship marketing programs (i.e., social, financial, and structural) on dyadic perceptions of relationship value. From an analysis of 113 buyer-supplier dyads, we found that social programs enhance relationship value synergy, but their effect on relationship value asymmetry between suppliers and buyers follows a U-shaped curve. On the other hand, we observe a positive and increasing returns-to-scale effect of financial programs on relationship value synergy and its inverted U-shaped association with supplier's relationship value asymmetry. Interestingly, structural programs increase relationship value synergy and have a stronger effect on increasing relationship value for the supplier than for the buyer. In addition, we find that structural programs are more effective in creating value in long-term relationships than in short-term relationships; therefore, as the relationship with a buying firm ages, managers should consider investing more in structural programs to develop their relationship. However, in long-term relationships, managers should avoid investing too much in financial programs because financial programs are less effective in increasing creation of relationship value as a relationship ages.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Research Centres and Groups: Marketing Innovation Research Group
Subjects: H Social Sciences > HF Commerce > HF5001 Business
Depositing User: Ngoc Luu
Date Deposited: 25 Oct 2017 08:11
Last Modified: 19 Jan 2018 09:46
URI: http://sro.sussex.ac.uk/id/eprint/70629

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