Relationship marketing

Relationship marketing (RM), in both business practice and academic research, has received ever–increasing attention, in line with the belief that strong buyer–seller relationships enhance exchange performance (Palmatier et al. 2006). This chapter provides a framework for understanding relationship marketing. To help managers and researchers understand the nature of business relationships, we provide a review of the mechanisms that underlie the relationship process. We also highlight the importance of analyzing the multiple dyadic ties between firms at an aggregate level to appreciate the complementary nature of various types of relationships and their impact on performance. Next, we offer insights into the various drivers of interfirm relationships and connect these relationships to previously measured performance-related outcomes. We also provide a brief discussion of the moderators that leverage the effectiveness of relationships.