Skip to main content

Competitive channel relationship management: When resellers establish competing manufacturer relationships

Marketing Letters volume 23, pages 645–659 (2012)Cite this article

Abstract

The focus of this study is the impact of competitive relationships on the effectiveness of channel relationship management strategies. We argue that the characteristics of a reseller’s relationship with alternative manufacturers influence his/her evaluation of the relationship with a focal manufacturer. We extend previous research by suggesting that the relative levels of channel conflict and information exchange are critical determinants of relationship outcomes. Building on previous literature on customer satisfaction, we argue that this relation is asymmetric; improvements in the levels of channel conflict and information exchange will have a greater effect when these are below the competitor’s comparative level than when these are above. We find support for these hypotheses in a sample of 491 observations corresponding to different resellers selling a manufacturer’s product line across several countries. Our results underscore the need for suppliers to go beyond conflict minimization and information exchange policies across relationships and consider individual-level competitive effects for each relationship.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Fig. 1

Notes

  1. In a first step, a Wald test indicates whether the equality of coefficients constraint can be rejected. If this null hypothesis is rejected (i.e., the two coefficients are not equal), then an asymmetric effect is present if the coefficient for “negative relative relationship attribute performance” is higher than the “positive relative relationship attribute performance” coefficient.

References

  • Anderson, J. C., & Narus, J. A. (1984). A model of the distributor’s perspective of distributor-manufacturer working relationships. Journal of Marketing, 48(4), 62–74.

    Article  Google Scholar 

  • Anderson, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42–58.

    Article  Google Scholar 

  • Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12(2), 125–143.

    Article  Google Scholar 

  • Anderson, E., & Weitz, B. (1992). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, 29(1), 18–34.

    Article  Google Scholar 

  • Anderson, J. C., Håkansson, H., & Johanson, J. (1994). Dyadic business relationships within a business network context. Journal of Marketing, 58(4), 1–15.

    Article  Google Scholar 

  • Bowman, D., & Narayandas, D. (2004). Linking customer management effort to customer profitability in business markets. Journal of Marketing Research, 41(4), 433–447.

    Article  Google Scholar 

  • Brislan, R. W. (1970). Translation and content analysis of oral and written material. In H. C. Triandis & J. W. Berry (Eds.), Handbook of cross-cultural psychology, vol.1 (pp. 389–444). Boston: Allyn & Bacon.

    Google Scholar 

  • Brown, J. R., & Day, R. L. (1981). Measures of manifest conflict in distribution channels. Journal of Marketing Research, 18(3), 263–275.

    Article  Google Scholar 

  • Crosby, L. A., Evans, K. R., & Cowles, D. (1990). Relationship quality in services selling: An interpersonal influence perspective. Journal of Marketing, 54(3), 68–81.

    Article  Google Scholar 

  • De Wulf, K., Oderkerken-Schroder, G., & Iacobucci, D. (2001). Investments in consumer relationships: A cross-country and cross-industry exploration. Journal of Marketing, 65(4), 33–50.

    Article  Google Scholar 

  • Einhorn, H. J., & Hogarth, R. M. (1981). Behavioral decision theory: Processes of judgment and choice. Annual Review of Psychology, 32, 53–88.

    Article  Google Scholar 

  • Etgar, M. J. (1979). Sources and types of intrachannel conflict. Journal of Retailing, 55(1), 61–78.

    Google Scholar 

  • Fornell, C., & Larcher, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Frazier, G. L. (1983). On the measurement of interfirm power in channels of distribution. Journal of Marketing Research, 20(2), 254–262.

    Article  Google Scholar 

  • Gaski, J. (1984). The theory of power and conflict in channels of distribution. Journal of Marketing, 48(3), 9–29.

    Article  Google Scholar 

  • Geyskens, I., Steenkamp, J. B., Scheer, L. K., & Kumar, N. (1996). The effects of trust and interdependence on relationship commitment: A trans-Atlantic study. International Journal of Research in Marketing, 13(4), 303–317.

    Google Scholar 

  • Heide, J. B., & John, G. (1988). The role of dependence balancing in safeguarding transaction-specific assets in conventional channels. Journal of Marketing, 52(1), 20–35.

    Article  Google Scholar 

  • Helson, H. (1964). Adaptation Level Theory. New York: Harper and Row.

  • Hogarth, R. M. (1987). Judgment and choice (2nd ed.). New York: Wiley.

    Google Scholar 

  • Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decisions under risk. Econometrica, 47(2), 263–291.

    Article  Google Scholar 

  • Kim, K, & Frazier, G. (1997). On the measurement of distributor commitment in industrial channels of distribution. Journal of Business Research. 40 (2), 139–54.

    Google Scholar 

  • Kumar, N., Scheer, L. K., & Steenkamp, J. B. (1995). The effects of supplier fairness on vulnerable resellers. Journal of Marketing Research, 32(1), 54–65.

    Article  Google Scholar 

  • LaBarbera, P. A., & Mazursky, D. (1983). A longitudinal assessment of consumer satisfaction/dissatisfaction: The dynamic aspect of the cognitive process. Journal of Marketing Research, 20(4), 393–404.

    Article  Google Scholar 

  • Lindell, M. K., & Whitney, D. J. (2001). Accounting for common method variance in cross-sectional research designs. Journal of Applied Psychology, 86(1), 114–121.

    Article  Google Scholar 

  • Mittal, V., Ross, W. T., & Baldasare, P. (1998). The asymmetric impact of negative and positive attribute-level performance on overall satisfaction and repurchase intentions. Journal of Marketing, 62(1), 33–47.

    Article  Google Scholar 

  • Mohr, J. J., Fisher, R. J., & Nevin, J. (1996). Collaborative communication in interfirm relationships: Moderating effects of integration and control. Journal of Marketing, 60(3), 103–115.

    Article  Google Scholar 

  • Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38.

    Article  Google Scholar 

  • Palmatier, R. W., Dant, R. P., Grewal, D., & Evans, K. R. (2006). Factors influencing the effectiveness of relationship marketing: A meta-analysis. Journal of Marketing, 70(4), 136–153.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Article  Google Scholar 

  • Qualls, W. J., & Puto, C. (1989). Organizational climate and decision framing: An integrated approach to analyzing industrial buying decisions. Journal of Marketing Research, 26(2), 179–192.

    Article  Google Scholar 

  • Rossiter, J. R. (2002). The C-OAR-SE procedure for scale development in marketing. International Journal of Research in Marketing, 19(4), 305–335.

    Article  Google Scholar 

  • Sekaran, U. (1983). Methodological and analytical considerations in cross-national research. Journal of International Business Studies, 14(2), 61–74.

    Article  Google Scholar 

  • Singh, J. (1995). Measurement issues in cross-national research. Journal of International Business Studies, 26(3), 597–619.

    Article  Google Scholar 

  • Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing, 66(1), 15–37.

    Article  Google Scholar 

  • Steenkamp, J. B., & Baumgartner, H. (1998). Assessing measurement invariance in cross-national consumer research. Journal of Consumer Research, 25(1), 78–90.

    Article  Google Scholar 

  • Thibaut, J. W., & Kelley, H. (1959). The social psychology of groups. New York: Wiley.

    Google Scholar 

  • Wathne, K. H., & Heide, J. B. (2004). Relationship governance in a supply chain network. Journal of Marketing, 68(1), 73–89.

    Article  Google Scholar 

Download references

Acknowledgments

We would like to thank the participating supplier for the assistance in the design and data collection. We would also like to thank Erin Anderson, Doug Bowman, Hubert Gatignon, Sandy Jap, and Dimitri Kapelianis for the valuable comments on elements of this project. The usual disclaimer applies.

Author information

Authors and Affiliations

  1. Washington State University, College of Business, 14204 NE Salmon Creek Avenue, Vancouver, WA, 98686-9600, USA

    Alberto Sa Vinhas

  2. London, United Kingdom

    Richard Gibbs

Authors
  1. Alberto Sa Vinhas
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Richard Gibbs
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding authors

Correspondence to Alberto Sa Vinhas or Richard Gibbs.

Appendix

Appendix

Table 3 Measures
Full size table

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Sa Vinhas, A., Gibbs, R. Competitive channel relationship management: When resellers establish competing manufacturer relationships. Mark Lett 23, 645–659 (2012). https://doi.org/10.1007/s11002-012-9168-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11002-012-9168-3

Keywords

  • Distribution channels
  • Business-to-business marketing
  • Channel management
  • Competitive effects