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Motivations for developing direct trade relationships

Parker, Melina, Bridson, Kerrie and Evans, Jody 2006, Motivations for developing direct trade relationships, International journal of retail & distribution management, vol. 34, no. 2, pp. 121-134.

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Title Motivations for developing direct trade relationships
Author(s) Parker, Melina
Bridson, Kerrie
Evans, Jody
Journal name International journal of retail & distribution management
Volume number 34
Issue number 2
Start page 121
End page 134
Publisher Emerald Group Publishing Ltd
Place of publication Bingley, England
Publication date 2006
ISSN 0959-0552
Keyword(s) Australia
buyer-seller relationships
fresh foods
qualitative market research
Summary Purpose – This study aims to understand buyer and supplier motives for developing direct relationships with their trade partners.

Design/methodology/approach – A total of 18 in-depth interviews were conducted across Victoria and Tasmania (Australia); eight with retail buyers and ten with fresh produce suppliers. Both parties were involved in a direct relationship with their trade partner.

Findings – The research reveals a large variety of motivations that influence buyers and suppliers when deciding whether to operate in a direct or non-direct relationship with their trade partner. Motivations for both parties are remarkably similar, with buyers and suppliers ultimately attempting to minimise the inherent risk associated with operating in a volatile environment.

Research limitations/implications – The study may be limited by the fact that buyers and suppliers of different commodities were included in the study. In addition, the varied nature of the respondents' role may have impacted their judgment. The inability to interview dyads in all cases also limits the research.

Practical implications – This research has implications for both researchers and practitioners already involved in, or considering becoming involved in, a direct trade relationship. Clarification of motivations for bypassing intermediaries shows how both trade partners can minimise external risk and strengthen competitive advantage by assuming a direct relationship.

Originality/value – Extant research within this literary field is largely quantitatively based with researchers focusing on distinct relationship constructs, the definition of relationship marketing and the process of relationship development. In response to these limitations, this research adopted a qualitative approach in examining the core motivations for developing a direct trade relationship within the fresh produce industry.
Notes Reproduced with the kind permission of the copyright owner. www.emeraldinsight.com/IJRDM.html
Language eng
Field of Research 150599 Marketing not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2006, Emerald Group Publishing Ltd
Persistent URL http://hdl.handle.net/10536/DRO/DU:30006519

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