Determinants of Long-Term Orientation in Buyer-Seller Relationships
Abstract
Marketing managers must know the time orientation of a customer to select and use marketing tools that correspond to the time horizons of the customer. Insufficient understanding of a customer's time orientation can lead to problems, such as attempting a relationship marketing when transaction marketing is more appropriate. The author suggests that long-term orientation in a buyer/seller relationship is a function of two main factors: mutual dependence and the extent to which they trust one another. Dependence and trust are related to environmental uncertainty, transaction-specific investments, reputation, and satisfaction in a buyer/seller relationship. The framework presented here is tested with 124 retail buyers and 52 vendors supplying to those retailers. The results indicate that trust and dependence play key roles in determining the long-term orientation of both retail buyers and their vendors. The results also indicate that both similarities and differences exist across retailers and vendors with respect to the effects of several variables on long-term orientation, dependence, and trust.
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Customer satisfaction influences the factors that signify customer loyalty or the long-term orientation of a relationship.
“Over the years, several researchers such as Ganesan (1994), Mittal, Ross, and Baldasare (1998), Mittal and Kamakura (2001) and others have exhibited customer satisfaction to be influenc -ing the factors that signify customer loyalty or in other words, the long-term orientation of a relationship.”
From The Antecedents of Customer Loyalty: An Empirical Investigation in Life Insurance Context (2013) · cites this paper as Ganesan (1994)
The original trust scales were validated.
“The original scales were validated.”
From Appropriate Reliance on AI Advice: Conceptualization and the Effect of Explanations (2023) · cites this paper as [21]
Transaction-specific investments increase buyers' dependence on the focal supplier.
“Second, TSIs increase buyers' dependence on the focal supplier (Ganesan 1994;John and Weitz 1989).”
From The Negative Effects of Social Capital in Organizations: A Review and Extension (2017) · cites this paper as Ganesan 1994
Satisfaction reflects the perception of the trustee's effective performance in terms of reliability and expertise in fulfilling past transactions, indicating that the trustee will have the integrity and ability to successfully deal with future transactions.
“Satisfaction also reflects the perception of the trustee's effective performance in terms of reliability and expertise in fulfilling past transactions (Ganesan 1994) indicating that the trustee will have the integrity and ability to successfully deal with future transactions.”
From Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms1 (2014) · cites this paper as Ganesan 1994
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- Authors
- Ganesan, S.
- Affiliations
- State University of New York (US)
- Corresponding author
- Ganesan, Shankar
- ORCID
- Ganesan, Shankar
- Venue
- Journal of Marketing
- Publisher
- SAGE Publications
- Published
- 1994-04
- Volume
- 58
- Issue
- 2
- Pages
- 1-19
- ISSN
- 0022-2429 (ISSN-L)
- 1547-7185
- OpenAlex
- W2170430750
- Cited by
- 6,741
- References
- 46
- Citations by year
- 2026: 62 · 2025: 104 · 2024: 120 · 2023: 175 · 2022: 173 · 2021: 228 · 2020: 233 · 2019: 264 · 2018: 284 · 2017: 283 · 2016: 320 · 2015: 350 · 2014: 400 · 2013: 365 · 2012: 395
- FWCI
- 61.14
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Marketing (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
- Social Sciences › Business, Management and Accounting › Management Information Systems › Quality and Supply Management
- Social Sciences › Business, Management and Accounting › Management Information Systems › Outsourcing and Supply Chain Management
- Keywords
- long-term orientation, buyer-seller relationships, relationship marketing, transaction marketing, interdependence, trust, environmental uncertainty, transaction-specific investment, reputation, customer satisfaction, retail buyers, time orientation
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