Relationship Between Parties ( Dwyer )

1019 WordsDec 2, 20155 Pages
. It is a topic that has a special appeal to researchers in the area of marketing. At least since the works of Bagozzi (1975), Hunt (1976) and Kotler (1972), definitions of the process of marketing have focused on exchange, which requires the establishment of some form of an exchange relationship between parties (Dwyer et al. 1987; Varadarajan and Cunningham 1995). Relationship marketing theory concerning competence factors draws on the strategic management literature. There, a competence is defined as “an ability to sustain the coordinated deployment of assets in a way that helps a firm to achieve its goals” (Sanchez et al., 1996, p. 8). Research on competences traces to the seminal works of Selznick (1957), Andrews (1971), Chandler…show more content…
(Hunt and Morgan 1995, 11) Thus, firms that have a Market Orientation understand the importance of utilizing information about both customers and competitors when developing strategy. These firms can utilize knowledge about their competitors (e.g. product, prices and strategies) and knowledge about a customer segment to produce a market offering for a certain segment more efficiently and effectively than their competition (Glazer 1991). The factor that determines the degree to which Market Orientation allows a firm to develop competitive advantage is the degree to which having a Market Orientation is unique, or rare, among competitors. Studies suggest that, indeed, a market Orientation is rare (Jaworski and Kohli 1993; Narver and Slater 1990). In addition, research suggests that market orientation contributes not only to competitive advantage, but also sustainable competitive advantage (Hunt and Morgan 1995). Resource Advantage Theory A resource is defined as "any tangible or intangible entity available to the firm that enables it to produce efficiently and effectively a market offering that has value for some market segments" (Hunt and Morgan 1995, 11). Resource Advantage theory specifically adopts a resource-based view of the firm. Defining resources as the tangible and
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