An integrated structural model of buyer-seller relationships in retailing markets

Abstract

Buyer and seller relationships have become an integral part of business-to-business operating strategies over the past ten years. However, we have less empirical knowledge about the process of relationship development. Hence, this paper aims to propose an integrated structural model of buyer-seller relationship in retailing markets. Measurement items are adapted from existing scales found in the marketing literature. Academic colleagues reviewed the items for face validity and readability. The scales are evaluated for reliability, convergent validity, and discriminant validity using data collected in a survey of Heavy Equipment Production Company's customers and employees. A structural equation modelling procedure is applied to the examination of integrated structural model of buyer-seller relationship. The research model was tested empirically using a sample of 165 customers and 110 employees of Heavy Equipment Production Company. The paper found that there are positive and significant relationships between direct (cost reduction, quality, volume, and safeguard) and indirect (market, scout, innovation development, and social support) functions of retailer, and relationship quality components (trust, commitment, satisfaction, and value creation).