Relationships have the largest payoff in China: 100% larger than in US
Relationships have the smallest payoff in Norway and Netherlands: 37% smaller than in US
(Samaha, Beck, and Palmatier 2014)
Targeting RM: Takeaways
RM strategies need to be adapted based on:
Customer’s governance needs (i.e., customer’s desire or need for a relationship, or relationship orientation)
Customer’s culture
In general, RM will be more effective when:
Product dependence is high
Category involvement is high
Industry has high relational norms
Salesperson is more competent
Individualism is low
Power distance is high (for status related constructs)
Institutional trust is low (for remerging economies)
In service and channel contexts
RM effectiveness will also depend on the relationship’s stage or state
Relationship Dynamics and Lifecycle Stages
Most relationships begin with an exploratory or early stage, featuring limited confidence in the partner’s ability and trustworthiness but also a willingness to explore the relationship to determine if the potential benefits exceed those available from alternative options
If the initial experiences are positive and produce the desired outcomes, as well as evidence of trustworthiness, relationships move into the growth or developing stage
If the relationship continues, the partners continue to obtain benefits and greater interdependence, such that they reach the maturity or maintaining stage
Even successful relationships can enter a decline or recovery stage in response to specific events (conflict, unfairness, betrayal) or passive neglect (failure to communicate, ending investments)