IJSER (ISSN 2229-5518) - A STUDY OF RELATIONAL INTENT IN AN ONGOING B2B CHANNEL RELATIONSHIP : ANTECEDENTS AND OUTCOME

Thesis Details

Author - anindya chakladar

Channel relationship marketing

Country - India

Email -

efpm01002@iiml.ac.in

Department - Marketing Management

University - Indian Institute of Management Lucknow

Guide Name - Prof Amit Mookerjee

IJSER Edition 7/11/2021

INTRODUCTION

Creating a Relational lifetime value is a successful approach for differentiating a relationship between two firms in a B2B channel, from competing dyads in same channel eco system forB2B context. Relational Value (RV) is a measure of competitive advantage to the dyad in a channel system as it builds competitive barriers. A plethora of research in relationship marketing bears testimony to the fact that this approach is preferred to improve competitive edge, reduce uncertainty and help value accretion to business exchanges. Though businesses continuously monitor their ongoing relations, surprisingly little conceptual or empirical research has addressed the process of evaluating relationship on a comparative scales with other ongoing concurrent relations. The primary motivation behind this study is to investigate how a firm conduct exchanges in a continuum from pure transactional to pure relational adapting dynamically from one to another with sheer unpredictability towards future exchanges. There exist no integrated framework for understanding the complex set of variables that can throw up a predictive behavioral pattern between members of dyads based on a more comprehensive description of previous transactions between them. . This study aims to explore formation of “relational lifetime value” between dyads in B2B based on interplay, complementary or substitution fully or partially by transactional or relational intent. The study is done with objective of finding a common metrics that has all encompassing set of constructs with which differential relational value can be attributed to competing dyads that can have differential effects on future exchanges between the dyad members. The exchange decisions will have overall bearing in the performance of the channel. To accomplish the objectives of this study, the research is structured in two phases, viz. exploratory and descriptive.The exploratory study covers a focused literature review and qualitative semi-structured interviews with 29 channel dyads of steel industry. Integrating past literature with focused interviews, the study develops a hierarchical intent-oriented relational value development framework. In the proposed framework, relational intent is a central construct that acts as either mediator or moderator of various channel thematic constructs that contributes to relational value accretion in the channel. The study further suggests developmental sequence of relational intent from three constructs under channel sentiment theme ( Domain expertise, domain consensus and goal compatibility) hypothesized to moderate, two under channel influence theme (interdependence and tolerance) and two under channel activity theme( bargaining and control) to mediate the effect on relational value. In the descriptive study, a survey incorporating items on 31 items on 7variables as antecedent and 1 variable as outcome to “relational intent” was developed. The instrument was pre-tested in two phases, first with representative dealers of TMT steel bars and manufacturer’s sales person. The psychometric properties of the items were checked and items were modified and deleted wherever necessary. Following pre-testing, the final questionnaire survey was fine-tuned and administered to 512 members of manufacturer-dealer dyad boundary personnel from where only 217 data points were used for structural modeling. The survey data analysis was conducted in three stages. The first step involved establishing the reliability and validity of measurement items measuring different variables through PLS 3.0 measurement modeling. For testing the sequential development of relational intent and hierarchical relational value development, path analysis was performed using structured equation modeling through bootstrapping the data up to 1000 iterations. In this phase, path analysis development yielded at least 3 variables antecedent to “relational intent” in hypothesized model did not fit regression criterion so had to be dropped. In the third phase,effects remaining antecedent and outcome construct of relational intent were tested using PLS regression analysis. The study is expected to contribute significantly to the domain of Industrial marketing practice in B2B segment for managing channel partners .This study attempts to provide original insights for marketing theorists and practitioners about the significance of practicing relational approach to viewing exchanges and ranking their relational accounts based on relational value.Contribution of this study is attempt to unify various approaches studies have been done to understand channel behavior by uniting various constructs from relational marketing and non relational economics through a pivotal normative construct “relational intent. Besides, the study also attempts to find a framework for predicting the relationship performance required by practicing managers to evaluate ongoing relationship and future relations building by proposing a parameter called “Relationship value”. The study elucidates a practical tool to manage channel relationship by inter-playing the modes based on exchange views between relational to transactional by either member of dyads. The study does provide an integrative framework for measuring channel performance based on value based approach giving sufficient theoretical and managerial inputs for further studies.