Buyer-seller

Buyers Sellers Buyers Sellers Buyers Sellers... 

Narayandas, D. Rangan, V. K. 2004. Building and sustaining buyer-seller relationships in mature industrial markets. Journal of Marketing, 68(3) 63-77. 

In the second circumstance, three parties are involved buyer, seller, and independent laboratory. Here, both the... 

Plum Creek was a new kind of corporate entity in the Maine Woods—a real estate investment trust (REIT), rather than a traditional timber company. An aggressive buyer, seller, and developer of land that offered consistently high earnings to investors, Plum Creek delivered a 20 percent return in 2007 (five times what Standard and Poors delivered that year). Such bounty is not obtained by growing... 

A simple chart shows this purchasing agent-total company relationship very effectively (Chart I). Now when we place on this chart of the customer s organization a similar chart of the seller s organization, we have the complete buyer-seller relationship (Chart II). 

The New York State Constitution mandates that the Adirondack forest preserve be maintained as forever wild, potentially overruling the commercial motivations of buyers, sellers, and even the public at large. This makes sense as a form of precommitment. 

Contracting that distributes costs and rewards based on contributions. Negotiations over costs and profits should not fall back on standard buyer-seller price negotiations. 

Figure 17.1 models the traditional relationship between suppliers, their customers, and end-users. The model reflects a transaction-based relationship, with the buyer-seller linkage driven by price and other conditions such as quality and delivery. But often, as the opening quote indicates, price is dominant. Ultimate end-users, on the right, have many suppliers, sometimes called vendors these suppliers, in turn, have their own... 

A problem is categorizing a buyer-seller relationship as a B when it is really a C. The clicks-and-bricks movement allows the buyer to choose whether he or she wants to deal in a B environment or a C environment. For example, in the dot.com era and more recently, companies try to establish markets for goods and services through brokerage sites and reverse auctions. Sometimes these work, providing execution in a B environment. At other times, a Box C interaction is appropriate. Companies have the opportunity to define supply chains for customers wanting different levels of collaboration in their decision making. 

The specification is an important part of the buyer-seller relationship. Too tight a specification means the seller must go to extraordinary means to meet the specification. It could also lead to scrap and excessive material cost. Sometimes, specifications are set without consideration of the manufacturing or other processes capabilities. Too loose a specification, on the other hand, spells trouble when the seller s components go into the buyer s product. 

Cowley, P., Margins and Buyer/Seller Power in Capital Intensive Businesses, PIMS Asso. Ltr (1986). 

Washington, DC 20036 For hearing impaired TDD 800-526-5456 fax 202-659-1192 e-mail ehc cais.com http //www.nsc.org/nsc/ehc/ehc.html Technical information for lead abatement professionals or landlords, buyers, sellers of property with lead paint. Database with summary of educational materials from various sources. Newsletter on lead poisoning prevention issues Lead Inform. ... 

A much more extensive treatment of the material in this chapter will be found in Blackstaff, M. 1999. Finance for IT decision makers a practical handbook for buyers, sellers, and managers. London Springer Verlag. 

In a subsequent step, a more detailed analysis of the identified segments is carried out again, two variables are employed, the customer s business attractiveness (high, medium, low) and the relative stage of the present buyer/seller relationship (strong, medium, weak). Particularly the latter dimension, also known as power balance, which is used as a means for assessing the relative power of customers and sellers, is a commonly used measurement in qualitative customer segmentation (see Fig. 3.4). 

Keywords guanxi network, buyer-seller relationship, vegetable, performsmce, China... 

Case study approach was applied to this research. Case study research is useful to explore an area in which the researcher has little or no control over events and the focus is on an existing event in a real life context (Eisenhardt, 1989, 1991 Yin, 2003). To conduct case studies in vegetable marketing in Jiangsu Province, we had asked for the perception of the case company interviewees about the concepts in our model related to guanxi network, buyer-seller relationships and the performance. 

The cooperative is fully responsible for its members vegetable sale. Formal contracts and the cooperative membership indicate their buyer-seller relationships (relationship 6). Pollution free vegetables are required by the cooperative. The major markets for the cooperative s products are domestic wholesale market (relationship 7). The cooperative also sells part of vegetables to supermarkets and domestic vegetable companies. Contracts are used in the transactions with supermarkets and vegetable companies while cash payments are popular in the wholesale market. 

Investment makes buyer-seller relationships closer. The physical investments are the equipments and machineries for processing and packaging which is crucial to improve product quality. Equipments (such as cooling vehicle) to transport products also fadHtate deliveries from the suppliers location to the warehouse of the company or directly to the retailers shops. Companies perceived transaction specific investments as improving the relationship with buyers and to enhance the transactions in the future. 

The aim of this research is to study if the Chinese cultural and social embedded guanxi networks are important in business practices and how they influence buyer-seller relationships and performances in vegetable supply chains in China. We interviewed 8 case companies to explore their guanxi network, trust, transaction specific investments, channel and governance choices and performance attributes of transaction costs and quality satisfaction. Summaries of the 9 selected buyer-seller relationships (relationship 1-9 in Figure 2-6) for each case company are listed in Table 2. 

Transaction costs Transaction costs close related to trust and reputation in buyer-seller relationships. Guanxi accelerates problem solving and increase problem tolerance in relationships with international customers which enhance long term business success. Thus transaction costs in international markets are lower than in domestic markets for higher level of trust and creditability of reputations which lead to less information and enforcement costs. 

First of all, the sample size of this study is limited. Practically it is difficult to use a rather small group of 8 case companies to sketch the picture of the entire vegetable chain. So the results showed here are more based on the position of individual companies and on buyer-seller relationships. More cases study is needed to see how guanxi networks work in the scope of the entire vegetable chain. 

Secondly, this case study focuses on one direction impacts. We studied the impacts of guanxi networks on buyer-seller relationships and on quality performance. We ignored the interrelations among the buyer-seller relationships and performance indicators. We also excluded the loop effects of performance on developing and the quality of guanxi network. It is reasonable to take these interrelations and loop effects into account for further research. 

Dwyer, F.R., P.H. SchurrandS. Oh, 1987. Developing buyer-seller relationships. Journal of Marketing 51, 11-27. Eisenhardt, K.M., 1989. Building theories from case study research. Academy of Management Review 14, 532-550. 

Ganesan, S., 1994. Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing 58, 1-19. 

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