TY - JOUR
T1 - The value added by specific investments
T2 - a framework for managing relationships in the context of value networks
AU - Kleinaltenkamp, Michael
AU - Ehret, Michael
PY - 2006/2/1
Y1 - 2006/2/1
N2 - Purpose Economic theories applied to the study of buyer-seller relationships draw to a large extent on the problems caused by specific investments. This contribution aims to develop a new perspective on specific investments that accounts for their value-adding character and also to present a transaction-centred definition of customer relationships. Design/methodology/approach The contribution draws on a comparative review on literature on business networks and economic theories focused on industrial buying behaviour. Findings Provides a transaction-related definition of customer relationships in order to distinguish between different kinds of relationships and provides a framework to how relationship management is able to enhance marketing activities. Practical implications Specific investments are a powerful tool for differentiating the market offerings of a company. One central implication is for managers to realise on which stage of the market arena such differentiation is likely to be successful: transaction, relationship, segment or value network. This is the starting-point for investing in a relationship portfolio conducive for the value generation of the company. Originality/value The paper shows that the value potential generated by specific investments is not fulfilled in the realms of present marketing literature. Also it is the first contribution to present a framework capable of treating phenomena of customer relationship management, relationship marketing and network marketing on the same footing, while still respecting the original motivations of those approaches.
AB - Purpose Economic theories applied to the study of buyer-seller relationships draw to a large extent on the problems caused by specific investments. This contribution aims to develop a new perspective on specific investments that accounts for their value-adding character and also to present a transaction-centred definition of customer relationships. Design/methodology/approach The contribution draws on a comparative review on literature on business networks and economic theories focused on industrial buying behaviour. Findings Provides a transaction-related definition of customer relationships in order to distinguish between different kinds of relationships and provides a framework to how relationship management is able to enhance marketing activities. Practical implications Specific investments are a powerful tool for differentiating the market offerings of a company. One central implication is for managers to realise on which stage of the market arena such differentiation is likely to be successful: transaction, relationship, segment or value network. This is the starting-point for investing in a relationship portfolio conducive for the value generation of the company. Originality/value The paper shows that the value potential generated by specific investments is not fulfilled in the realms of present marketing literature. Also it is the first contribution to present a framework capable of treating phenomena of customer relationship management, relationship marketing and network marketing on the same footing, while still respecting the original motivations of those approaches.
KW - Investments
KW - Networking
KW - Relationship marketing
UR - http://www.scopus.com/inward/record.url?scp=33645217632&partnerID=8YFLogxK
U2 - 10.1108/10610420610651287
DO - 10.1108/10610420610651287
M3 - Article
AN - SCOPUS:33645217632
SN - 0885-8624
VL - 21
SP - 65
EP - 71
JO - Journal of Business & Industrial Marketing
JF - Journal of Business & Industrial Marketing
IS - 2
ER -