Title

Measuring and Modeling the Effects of Long-Term Buyer-Seller Relationships in Corporate Financial Services Markets

Publication Type

Journal Article

Publication Date

11-1999

Abstract

This paper focuses on attempting to identify and model the role that the long-term relationship plays in affecting future sales versus the roles of other such forces as product performance, sales activities, and price. A conceptual model of the long-term relationship is developed and empirically tested on data obtained from top level financial executives of 123 “important” customers of a major money center commercial bank. A structural equation model using multiple indicators is developed and estimated. Results indicate knowledge and perception of actively seeking customer's business affects the longevity of the relationship. Competitive pricing and past usage improve relative perceived performance. In turn, relative perceived performance and relationship longevity are positively related to future usage.

Discipline

Finance and Financial Management | Marketing | Sales and Merchandising

Research Areas

Marketing

Publication

Journal of Business Research

Volume

46

Issue

3

First Page

235

Last Page

244

ISSN

0148-2963

Identifier

10.1016/S0148-2963(98)00038-1

Publisher

Elsevier

Additional URL

http://dx.doi.org/10.1016/S0148-2963(98)00038-1