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Business Relationship Management and Marketing: Mastering by Michael Kleinaltenkamp, Wulff Plinke, Ingmar Geiger

By Michael Kleinaltenkamp, Wulff Plinke, Ingmar Geiger

Relationship administration, key account administration and patron orientation are strategies that experience develop into relevant to fashionable administration. This ebook is devoted to illustrating and reflecting those innovations and their corresponding equipment and tools extensive. it truly is thereby excited about the business-to-business realm and both applies to standard business markets in addition to to business-to-business prone. Contributions contain state of the art study effects which are conveyed in a understandable model to be utilized in either govt schooling in addition to in practice.​

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Sample text

Supplier investments can also effect a fundamental transformation. In many cases, the supplier in a business relationship will be forced to make investments that are sunk costs for him. Investments made by the supplier can also transform the market situation to a bilateral monopoly. On the one hand, supplier investments made under the assumption of an imperfect market are relevant, because new investment projects cannot always simply be financed. On the other hand, the calculation basis for the in-supplier’s pricing is completely changed by the specific investments.

On the basis of theoretical preliminary considerations and a series of in-depth interviews, they identified six values perceived by customers in business relationships. Three of these values include cost aspects and three benefit aspects. 1 and to Sect. 1). Empirical examination of the model revealed that, in regard to assessing the value of a business relationship, the perceived benefits play a greater role that the perceived cost reductions. In regard to the significance of the individual dimensions, the study showed that the greatest value was placed on gains in benefits in the operations and sourcing areas as well as on production cost reductions (Ulaga and Eggert 2006).

Source: Based on Eggert (1999) resources specific to the business relationship losing value from switching, meaning that the quasi-rent is at risk. To determine the relevance of the model—previously tested successfully in the business-to-business field—to business relationship management, in his study the author also examined the intended behavior of the three commitment drivers— business relationship value, direct switching costs and sunk costs—that emanate from the supplier and the purchaser.

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