Service Contract Negotiations in Marketing Channels:

Abstract

This study investigates the factors that influence motor carriers perceptions of the success of negotiations with customers over contractual transportation service in marketing channels. The findings indicate that the motor carrier's perceived success of the negotiation is influenced directly by his/her trust of the customer, and indirectly by the customer's dependence on his/her organization. The results also suggest that though the nature of contract negotiation for motor carriage service has become more cooperative in the deregulated environment, a certain degree of opportunism still influences the negotiator's behaviors. From these findings, issues are presented which can aid the channel members in developing successful strategy for future negotiation with motor carriers.