The dynamics of buyers' perceived costs during a relationship development process: an empirical assessment

Abstract

This study reports the perceptions of industrial buyers concerning the costs their firms incurred in procuring products during the four phases of relationship development with key suppliers to whom they are now committed as exchange partners. This research fills a gap in the buyer–seller relationship development literature by offering empirical results concerning buyers' perceived costs at different relationship phases. Implications suggest that knowing each cost component's relative importance to buyers during each relationship phase, managers can better control their procurement and marketing efforts.