The Impact of Relational Marketing Bonds on Retailers' Economic and Social Satisfaction

Abstract

In the literature on channel relationships, there is a complex and hostile relationship between manufacturers and large retailers, especially given the growing strength of retail organizations in the global context. This study thus examines (a) the impacts of relational marketing bonds on economic and social satisfaction and (b) the role of economic satisfaction in the relationships between relational marketing bonds and social satisfactionin the manufacturer-retailer relationship. This quantitative study presents empirical findings from a survey of 140 large retailers using partial least squares. The results revealed that organizational bonds, but not interpersonal bonds, were crucial in affecting retailers' economic satisfaction. Meanwhile, interpersonal bonds were crucial in affecting retailers' social satisfaction. The results also provided strong evidence of the relationship between retailers' economic and social satisfaction as well as the crucial role of economic satisfaction as a mediator between organizational bonds and social satisfaction. Theoretical and managerial implications are extracted from these findings.

When Does Relational Exchange Matters? Social Bond, Trust and Satisfaction

“…Previous studies which were conducted in other business contexts confirmed the aforementioned argument (Nath and Mukherjee 2012, Schakett et al 2011, Liang and Chen 2009a, Jonsson and Zineldin 2003, Mohd Noor, Perumal, and Goaill 2015. Therefore, this study claims that social bonds, which are developed between exchange partners positively influence the suppliers' satisfaction in the relationship with their trading partner.…”

“…The findings are in agreement with previous research that examined the relationship between social bonds and satisfaction. In a study in the Yemeni manufacturer-retailer relationship, Mohd Noor, Perumal, and Goaill (2015) found out that social bonds are crucial in affecting retailers' satisfaction. Peltier and Scovotti (2005) sustained that social bond is the most influential factor of satisfaction in the healthcare marketing relationship.…”

“…In addition, the SET has been employed to examine interactions in business-to-business relationships using various variables. Trust, commitment, satisfaction, relationship duration, bonds, and dependence are amongst the most cited variables (Mohd Noor, Perumal, andGoaill 2015, Lambe, Wittmann, andSpekman 2001). Researchers have identified and tested these variables as significant drivers of outcomes of an exchange relationship.…”

“…Previous studies on social bonds predominantly focused on their direct effect on relational outcomes, such as loyalty (Huang et al 2014), satisfaction (Mohd Noor, Perumal, andGoaill 2015), and commitment (Cater and Zabkar 2009). These works overlooked the potential moderator in the relationship between social bonds and supplier satisfaction.…”

“…Extant literatures have couched that relational behaviours appear to have a stronger influence on the satisfaction of exchange relationships (Palmatier, Dant, and Grewal 2007, Voldnes, Grønhaug, and Nilssen 2012, Mohd Noor, Perumal, and Goaill 2015. Various theories have been applied to explain satisfaction in business-to-business relationships.…”