42 The Marketing Book
aspects of management which consider busi-
ness structures and business networks as
aspects of its core.
A key issue within the relationship market-
ing literature is the conceptualization of rela-
tionship development (Wilson, 1995). All of the
models offered (see Table 3.1) implicitly adopt a
life cycle approach, suggesting that relation-
ships are created, develop and ultimately end.
Within this conceptualization, relationship for-
mation is envisaged as a series of exchanges
that lead to increasing commitment. Of these,
the Ford (1980) model is interesting in terms of
the managerial implications delineated at each
phase, while the Dwyer et al. model (1987)
specifically considers the move from transac-
tions to relationships and suggests that this is
an equally appropriate conceptualization for
relationships in consumer markets as it is in
other empirical contexts.
In the pre-relationship stagea potential new
supplier is evaluated. The distance between the
firm and the new supplier has five dimensions,
namely:
Social distance or unfamiliarity in working
methods.
Cultural distance concerning differing norms
and values.
Technological distance between product and
process technologies.
Time distance between contact and product or
service transfer.
Geographical distance between the two
companies.In the early stage, where initial contact and trial
orders occur, there will be much uncertainty
and little evidence to judge the commitment of
a relationship partner. In the development stage,
the firms become more used to dealing with
each other and the frequency of orders and
communication increase. Both the distance and
uncertainty that characterize the earlier stages
decrease. By the time the long-term stage is
reached, formal contracts are likely to have
been established and the firms are mutually
dependent. Uncertainty is further reduced and
the firms work so closely together that their
relationship may become institutionalized and
unquestioned within either business. Commit-
ment to working with the partner firm will be
demonstrated by adaptations. In the final stage,
which is reached over the long term in stable
markets, relationships are close and institu-
tionalization continues to the extent that
attempts to change may be met with sanctions
by the partner firm.
Importantly, Dwyer and colleagues cite
Levitt’s (1983, p. iii) marriage metaphor as their
point of departure in developing their con-
ceptual model:Table 3.1 Process models of relationship development
Ford
(1980)Frazier
(1983)Dwyer et al.
(1987)Borys and Jemison
(1989)Wilson
(1995)Pre-Relationship Stage Review Awareness Search and selection
Early Stage Exploration Defining purpose Defining purpose
Development Stage Implementation Expansion Setting boundaries Setting boundaries
Long-Term Stage Outcomes Commitment Value creation Value creation
Final Stage Hybrid stability Hybrid stability
Dissolution