Corning is a committed partner to Apple, manufacturing all the touchscreens for the iPhone
As new manufacturers step into the market with tougher, lighter, and glossy touchscreens, Corning is forced to innovate to maintain its relationship, as a top supplier, with Apple
In turn, Apple also devotes attention to Corning’s R&D effort by informing Corning about the desired properties of the new touchscreens (e.g., size, toughness, texture)
These efforts on the part of Apple and Corning support and strengthen the relationship bond between these partners.
Cooperative Behaviors
Cooperative behaviors are coordinated, complementary actions between partners to achieve a mutual goal
This creates value beyond what each individual firm could do on its own, cooperation increases customers’ flexibility and adaptiveness to sellers’ requests for changes, information, or reciprocation
If the customer obtains its portion of that created value before the seller (or vice versa), then the seller must wait for the reciprocal benefits
Commitment encourages the parties to remain in their valued relationships and bonds, even if the reciprocity is delayed or non-equivalent
Relational Loyalty
Relational loyalty is the likelihood that the customer provides the seller benefits in the exchange process due to their relational attitudes and ties
Relationships positively influence this loyalty, because customers perceive less risk dealing with trusted partners, act on relationally generated belonging, and minimize costs by buying from valued sellers
Loyalty is very determinant of firm success in competitive marketplaces
Referrals or Word of Mouth (WOM)
Referrals or word of mouth (WOM), reflects the likelihood that a customer comments positively about a seller to others
Relational bonds, feelings of gratitude, and positive attitudes drive the motivation and willingness to provide requested or unrequested referrals
Because it is not affected by switching costs or lack of time or motivation, WOM provides an effective indicator of customer loyalty; only customers with strong, trusting relationships are likely to risk their reputations by advocating a seller to another potential customer
Referrals and WOM differ from loyalty-favored behaviors, because they represent different performance-enhancing pathways
