RM Payoff Varies Across Different Countries

RM Payoff Varies Across Different Countries

• On average, RM 11% more effective outside the US
• Relationships have the largest payoff in China: 100% larger than in US
• Relationships have the smallest payoff in Norway and Netherlands: 37% smaller than in US

Targeting RM: Takeaways

• RM strategies need to be adapted based on:
• Customer’s governance needs (i.e., customer’s desire or need for a relationship, or relationship orientation)
• Customer’s culture
• In general, RM will be more effective when:
• Product dependence is high
• Category involvement is high
• Industry has high relational norms
• Salesperson is more competent
• Individualism is low
• Power distance is high (for status related constructs)
• Institutional trust is low (for remerging economies)
• In service and channel contexts
• RM effectiveness will also depend on the relationship’s stage or state

Relationship Dynamics and Lifecycle Stages

• Most relationships begin with an exploratory or early stage, featuring limited confidence in the partner’s ability and trustworthiness but also a willingness to explore the relationship to determine if the potential benefits exceed those available from alternative options
• If the initial experiences are positive and produce the desired outcomes, as well as evidence of trustworthiness, relationships move into the growth or developing stage
• If the relationship continues, the partners continue to obtain benefits and greater interdependence, such that they reach the maturity or maintaining stage
• Even successful relationships can enter a decline or recovery stage in response to specific events (conflict, unfairness, betrayal) or passive neglect (failure to communicate, ending investments)