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The Commitment-Trust Theory of Relationship Marketing

Essay by   •  July 1, 2012  •  Research Paper  •  2,439 Words (10 Pages)  •  2,649 Views

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1. Relevance of Article

The paradigm of market competition has undergone a real change. Currently, it is understood that competition need not be predatory, but cooperative. This is because the competition is very fierce and complex, since the rapid access to new technology makes the products and services, often easily copied, which makes more difficult the task of business differentiation and value creation. Thus, we created a concept that encompasses partnerships in business, lasting relationships and collaboration.

So for a company to be an efficient competitor in the global economy, it needs to be a reliable cooperator in the business.

Therefore, the article in question has done a study on relationships within marketing in order to understand the importance that commitment and have confidence in the competitive market. The author develops the study from the concept of relationship marketing and analyzing the following variables commitment and trust. Then, it establishes the model of precursor and outputs of the variables mentioned and simulates the model in selling tires, comparing the model with a rival. Finally he presents the results.

2. Literature Review

2.1.The nature of the relationship marketing

The marketing relationships cited by the author refers to the position taken by the company in relation to their suppliers, their employees, their target audience, the external subjects (government, competitors, etc..). There is a unique way of dealing with this relationship. Several authors define what actions are important to highlight in each area. Berry (1983) states that "relationship marketing is to attract, maintain and improve customer relationships," and there are similar definitions such as Doyle and Roth (1992) who state that "the goal of selling relationships is to gain position of preferred supplier by trusting relationship established for a while. "However, the author of the article suggests that in a strategic alliance there are no buyers, sellers or consumers, only partners exchanging resources. Therefore, relationship marketing refers to all marketing activities directed to establish, develop and maintain a trade relationship a success.

It should be the central issue to understand what is a relationship marketing the distinction of what is productive and efficient is not all that is necessary to understand what makes a successful relationship marketing. The author argues that the presence of commitment and trust leads to cooperative behavior between the parties allowing the successful relationship. He proposes a model study of the relationship marketing variables that the two are at the center. These features are key, as they lead participants to preserve the investments and maintains mutually beneficial long term to avoid short-term alternatives that would break the alliance.

2.2.Comprometimento

The author defines commitment in the relationship being a situation where the parties consider the project so important that it is worthwhile to great lengths to keep it. The position of involvement in the internal relations of a company does not mean only in low turn-over, high motivation and unity among employees, make possible an organizational support for training and growth.

It is understood that a connection be established using only mutual engagement. Formed the same idea is the concept of "brand loyalty", a concept that was previously understood only as the act of recall. However it is known that there are other factors that lead to repurchase, so loyalty is more related to the impairment of certain brands when they promote their superior benefits (eg, green marketing).

2.3.Confiança

The author defined by confidence situation in which a party believes the integrity and reliability of the other. The act of a firm to rely on other starts from the belief that this is consistent, competent, honest, fair, responsible, helpful and will take action that will bring mutual benefits. Confidence that a portion may actually have the other will generate intention to actually count with each other.

2.4.Precursores relationship commitment and trust

The author identified through secondary research, five variables that influence reliable and committed relationship.

- The costs to society: the end of an agreement between two parties takes the search for an alternative relationship, and this change can lead to dependence and high costs in some cases the migration is not possible. So, knowing this, the parties know how important it is to maintain a lasting relationship.

- Benefits of the relationship: Given a competitive strategy, is always interesting processes that enhance their products. To deliver this high value is necessary to always maintain good relations with its partners that enable it, generating commitment.

- Shared values: This variable relates positively with both commitment and trust. Shared values ​​refers to the beliefs, practices, objectives and policies that partner companies have in common.

- Communication: the author understands how communication as a formal or informal way of exchanging information between firms. The author argues that the communication will precede and enable the trust, but it is known that confidence will lead to good communication.

- Opportunistic Behavior: This behavior will occur when a party seeking "interests wisely." When a party notice this kind of behavior, the confidence level will fall.

2.5.Resultados relationship commitment and trust

The author proposes five variables that will characterize a relationship that has and who has no confidence and commitment.

- Consent and propensity to leave: The degree to which the party accepts and follows the claims define what that relationship is consent, and the author suggests that the commitment will generate a high rate of consent. The bias is the tendency to leave that part to finish the society, and the author proposes that this will result in a higher ratio of low commitment.

- Cooperation: Cooperation refers to situations in which partners work together to achieve a common goal: Commitment and confidence will lead to cooperation.

- Functional Discussion: In a relationship there is trust, the parties will be open to discuss ideas to prevent stagnation of functional form.

- Uncertainty in decisions: Uncertainty in the decision will take place when we do not have enough

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