Lecturer Shahed Rahman Exchange Relationships Bridging Transactions Why are exchange relationships so complex First all people are different Second human interactions provide the only means through which exchange relationships can develop ID: 642095
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Long Term Inter firm Relationships
Lecturer – Shahed RahmanSlide2
Exchange Relationships: Bridging Transactions
Why are exchange relationships so complex?First, all people are different
Second, human interactions provide the only means through which exchange relationships can developSlide3
Exchange Relationships: Bridging Transactions
Three basic types of human interactions can arise in business domainsCalculative Exchange Relationships
Ideational Exchange Relationships
Genuine RelationshipsSlide4
Calculative Exchange Relationships
Entirely based on the economic returns derived from a transactionDoes not last long
In calculative exchange relationships behaviors must conform to precise transactions termsSlide5
Ideational Exchange Relationships
Each exchange partner is viewed by the other as a conveyor of ideas, ideals and opinionsDevelopment of norms
In the future it can improve performanceSlide6
Genuine Relationships
Genuine relationships are highly evolved interactions in which partners are willingly
to share personal information
Decision and behaviors in genuine relationships are
no
longer based on
purely rational transaction criteria
Share behavioral norms
as well as personal affinity (likeness) for one anotherSlide7
Exchange Episodes
Exchange episode is a separate and distinct transaction, such as Ford acquiring parts from Mazda
When the channel participants have little allegiance (Commitment )
In marketing channels, exchange episodes are completed based on pre-specified terms of exchangeSlide8
Four
elements must be associated with any marketing exchange episode
Products and services
Information exchange
Financial exchange
Social exchangeSlide9
Products and services
Products or services are usually the primary object of interest in any marketing exchange episodeSlide10
Information Exchange
Information exchange is technical, institutional, market intelligence conveyed from one channel member to another through personal or impersonal meansSlide11
Financial Exchange
Ultimate economic measure of exchangeMutual assignment of valueSlide12
Social Exchange
Two things are necessary for social exchangeMust be purposeful and adaptive
(
Each participants believes that objectives can be reached through taking part in the exchange
)
Willingness among the partners to adapt their behaviors or expectations to achieve outcomes sought through exchange.Slide13
The Discrete Relational Exchange Continuum
Discrete exchange is a transaction that has little social or no information exchange and no significant past or likelihood of a future relationship with the other participant
There are little interpersonal involvement between the exchange parties.
Communication is functional and used only to complete the transactionSlide14
Stages of Channel Relationship
Most relationships pass through four stages of developmentAwareness
Exploration
Expansion
CommitmentSlide15
The four stages of Channel RelationshipSlide16
Exchange Governance Norms
All behavioral contracts are governed by normsFive key governance norms are
Reciprocity
Relational communication
Solidarity
Role integrity
MutualitySlide17
ReciprocitySlide18
Exchange Governance Norms
Solidarity (Team Spirit)
Glue that binds exchange partners together
Role integrity (Honesty)
The degree to which each party to an exchange fulfill it promises and satisfies its partners
Mutuality (Support)
Each partners creates outcomes. Benefits must be distributed between them