1. Fostering Relational Exchange with the Internet
The increasing importance of relational exchange
The Internet’s impact on relational exchange in B2B and B2C markets

2. The Importance of Growing Relationships
The Internet and 1:1 marketing
Goal of creating unique relationships
From share of market to share of customer
Illustrated by four shifts
Products to People (accountability, addressability)
Competition to Cooperation (strategic alliances)
Standalone to Networked (interactivity)
Transactions to Relationships (resource exchange, collaborative orientation)

3. Measuring Relational Value
Behavioral and psychological measures
Behavioral
Number of transactions
Frequency of transactions
Types of facilitating activities
Psychological
Satisfaction
Trust
Commitment

4. Developing B2C Relationships
Relational exchange as a decision process
Prepurchase – search and satisfaction
Software agents
Purchase – transactions and trust
Payment systems
Postpurchase – complaints and commitment
Justice theory for complaint handling
Procedural, interactional, distributive

5. Developing B2B Relationships: Environmental Effects
Business relationships help manage environment challenges
Supply market characteristics
Availability of other sources
Variability of supply sources
Situational characteristics
Supply complexity
Supply importance

6. Developing B2B Relationships: Dimensions of Relationships
A framework for describing relationships (from Cannon and Perreault, 1999)
Types of relationships organized by relationship connectors
Operational – processes for exchange
Info. exchange, cooperative norms, operational linkages
Structural – forms of exchanges
Legal bonds, buyer and seller adaptation

7. The Internet’s Impact: Reactive
Internet affects supply market
E.g., ease to locate alternative sources
E.g., ease to communicate can locate better prices
E.g., difficulty to discern seller identity (e-hub)
Internet affects supply complexity
E.g., buyer-supplier interaction  product re-design
E.g., ease to locate supplier with more adaptive manufacturing capabilities

8. The Internet’s Impact: Proactive
Businesses use the Internet to encourage relationship connectors
E.g., buyer gets scheduling info about seller’s delivery constraint and acts to adjust inventory storage to accommodate seller, or choose another
E.g., sellers tailor product offerings to increase dependence and switching costs for buyers
E.g., sellers create extranets to automate re-buy processes