ABSTRACT
Modern business relationships are typically more complex than simple dyads. In a business-to-business relationship, there may be many inter-personal relationships formed between people on both sides. Customers exit relationships for many reasons, such as repeated service failures or changed product requirements. Suppliers may choose to exit relationships with customers because of the relationship’s failure to contribute to sales volume or profit goals. Investments can include time, money, and the sidelining of current or alternative relationships. The fundamental reason that companies want to build relationships with customers is economic. The Industrial Marketing and Purchasing (IMP) School argues that business-to-business transactions occur within the context of broader, long-term relationships, which are, in turn, situated within a broader network of relationships. IMP researchers have focused on two major streams of activity-related research: the structure and cost effectiveness of activity links, and the behavioral characteristics the enable relationships to survive.
