Relationship Value in Business Markets: The Construct and Its Dimensions

ABSTRACT

In recent years, the concept of relationship value has attracted increasing attention among marketing researchers and practitioners alike. Despite a growing body of literature in this area, no generally accepted conceptualization of relationship value has emerged from the marketing literature. The present paper investigates the theoretical foundations of relationship value and identifies seven underlying dimensions. It is suggested that relationship value should be conceptualized as a formative, multi-dimensional, higher-order construct. This conceptualization is tested using data from a cross-sectional survey among some 200 purchasing managers from manufacturing companies. The scale development process is presented and directions for future research are discussed.

KEYWORDS:

• Relationship value
• buyer-seller relationships
• formative scales
• PLS