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Can asymmetrical relationships be true marketing relationships?

Lookup NU author(s): Dr Janet Ward

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Abstract

ABSTRACT The academic literature relating to asymmetry in marketing relationships is disparate. Gummesson (1994) remarked that “relationships are seldom completely symmetrical” while, Blomquist (1999) observed that “asymmetric relationships between large and smaller companies are common.” Many of the issues associated with asymmetry are seen as negative to the relationship. Pfeffer & Salancik (1978) suggest “when the net exchange between organisational entities is asymmetrical, some net power accrues to the less dependent organisation. Often relationships described as asymmetrical are actually only asymmetrical in one aspect of the relationship. Can other aspects of the relationship balance an asymmetrical aspect so that an effective marketing relationship can exist? To research this area further a modeI was proposed. The aim being to take a wider perspective and to study asymmetry as a factor of all the active relationship constructs (Wilson D, 1995), rather than just individual constructs. All perspectives on the relationship will be researched e.g. buyer and seller perspective. So that asymmetry can be measured as the overall balance of the active constructs from all participant perspectives. This is represented in a model which envisages a continuum from complete asymmetry of active constructs which could be interpreted as transaction marketing through to complete symmetry of active constructs, progressing through different levels of relationship. Therefore stronger relationships would show greater symmetry of active constructs, while weak relationships would show greater asymmetry in active constructs. How can this model be tested? Schell, C. (1996) suggests “Relationship management in banking is clearly an asymmetrical process, with customers effectively following their bankers.” UK government statistics for the year 2000 (Small Business Service, 2001) show that small businesses (with less than 50 employees), accounted for over 99% of UK businesses, 44% of non-government employment and 37% of turnover. Many, however, as a result of their scale of operation have limited financial and managerial resources, and the quality of service they receive from their banks and the terms on which it is provided are key factors in the success of this sector. (Competition Commission, 2002) Ninety percent of rural businesses are micro-businesses ( businesses with less than 10 employees), employing 41% of all rural employees. (The Countryside Agency 2003) Despite changes in both the overall structure of the rural economy and the banking provision within rural areas there has been little work specifically examining the relationship between rural small businesses and their banks. Can rural small businesses develop and maintain true marketing relationships with their banks despite the apparent asymmetry? The main objective was therefore to evaluate if this research provides initial evidence to support the hypothesis:-. ‘That strong relationships would show greater symmetry of active constructs, while weak relationships would show greater asymmetry in active constructs'. . In-depth interviews were carried out with two of the major banking providers in the north east of England. Thus the first phase of research was focussed on the seller perspective. The two banks had superficially very similar management structures, however there differences both between and within the different divisions of the two banks in their relationship orientation. Overall this work concurs with the hypothesis that:- ‘That strong relationships would show greater symmetry of active constructs, while weak relationships would show greater asymmetry in active constructs'. There were nine active constructs as perceived by the bank managers six of which showed symmetry in strong relationships:- trust, power, commitment, mutual goals, performance satisfaction and social bonds. While in weak relationships these were seen as being asymmetric. Also it showed that other constructs such as communication may be need to be added to the list prepared by Wilson (1995). Future work and the managerial implications for both the banks and rural small businesses will also be discussed.


Publication metadata

Author(s): Ward JA

Publication type: Conference Proceedings (inc. Abstract)

Publication status: Published

Conference Name: The 12th International Colloquium in Relationship Marketing 2004, Hamilton, New Zealand, December 2004

Year of Conference: 2004

Pages: 26

URL: http://wms-soros.mngt.waikato.ac.nz/NR/ICRM2004/papers/Ward%20-%20paper%20-%20Can%20asymmetrical%20relationships%20be%20true%20marketing%20relationship.doc

Notes: Peer reviewed


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