Relationship Marketing

Abstract

The relationship between firm and their customers is a critical issue when establishing a long term relationship. The relationship management has become an essential part of business strategy due to the complexity and increasing competition. Previous researchers mention (Wong & Sohal 2002, Grönroos & Ravald 1996, Selnes 1996,) that values and benefits can only be obtained if customers agree to make long term relationship and consider them valuable.

In the context of buyer-supplier relationship, continuity of relationship consists on loyalty from both sides. Loyalty has been define in term of repeat purchase, positive attitude, long term commitment, intention to continue relationship, expressing positive word of mouth and not switching for any other product. There are many factors which can affect the loyalty but in the current study four factors or variables have been discussed such as supplier competence, communication, commitment and conflict handling.

The aim of this study is to know the role of relationship variables between international buyer-supplier relationship and on customers’ loyalty. Theoretical work was based on previous researches and literature regarding relationship variables and customer’s loyalty. Case study method has been chosen for current study which is most appropriate to meet the purpose. Data has been collected from one Finnish firm in print industry. The study found that in order to maintain customers’ loyalty, it is vital for firms to meet their needs and wants, and all relationship variables need to be considered during the entire relationship process between supplier and buyer, without any discrimination whether new customers and old one.