Does Relationship Marketing Age Well

Most managers agree that close co-operative relationships between business partners yield benefits to all parties. However, some question whether these benefits continue as the relationship ages. This article reports on a study designed to answer this question. The study suggests that, however long the relationship, building trust, commitment and the other components of Relationship Marketing (RM) continue to have a positive effect on the performance of business partners. However, it also shows that, over time, the positive effect diminishes. The authors suggest that managers need to recognize this, and to identify the true costs of building relationships so as to judge whether the diminishing returns justify the effort. Ultimately, managers need to vary their handling of each relationship because standardized RM practices are unlikely to be effective.