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Communication is a central relationship marketing and management variable. It is a precursor to relationship formation and a core part of the social fabric of an ongoing relationship. Communication is also embedded in electronic exchanges between partners. Given this, communication has received little attention in the relationship literature and is often viewed as a subsidiary variable.
This paper presents an exploratory study that illustrates the central role communication can play in a relationship, especially in the emergence of electronic trading. Specifically, the study uses Waterford Crystal and its relationship to five of its retailers to examine the impact that communication has on relationship governance, other relationship variables, marketing tactics, and critically, the development of electronic trading.
The research found that communication is central to a relationship and may mediate its structure. It was also found to relate more to the social structure of a relationship than to its economic structure. Communication underpinned the importance of the people in the marketing process, namely sales and customer service personnel. Communication was found to be a main determinant of the emergence of electronic trading relationships and close communication may facilitate the implementation of these exchanges. A renewed focus on relationship communication should help managers more effectively conduct relationship interfaces.
Introduction
Relationship marketing and managing relationships have become a strategic option for certain firms. Managing relationships can be complex as they represent social as well as economic entities. Once a relationship strategy has been devised it must be implemented. One core process through which relationship strategy can be implemented is communication. This may seem obvious, but this process has mainly been researched as a subsidiary variable. Through recent research, the authors have found communication to be central to the ongoing development of relationships. How communication is conducted and associated communication behaviour vary across relationships to the point where poor communication can destroy a relationship. The emphasis on communication in relationships has been heightened due to the growth in electronic relationships. The willingness to share information electronically is often linked to the intensity of communication patterns in a relationship. Indeed, the loss of contact perceived to be brought about by technology can be a barrier to adoption of technology in relationships. The centrality of communication in relationships...