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Journal of Service Research
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Managing Relational Exchanges

Gila E. Fruchter

Bar-Ilan University

Simon Pierre Sigué

Athabasca University

The authors propose an analytic model that deals with both behavioral considerations between exchange partners and the determination of relational marketing efforts over time. On the basis of the behavioral marketing literature, they consider three main factors that drive the levels of relational commitments between two exchange partners: the trust/distrust component, the opportunism component, and the relational marketing effort of the seller. Incorporating these factors in a well-known model used in appliedmathematics for "love dynamics," the authors claim that the issue of managing relational exchanges is an optimal control problem. Their analysis shows that the seller’s optimal policy for determining relational marketing effort over time is either time-invariant or time-variant, depending on whether or not the exchange partners are conservative and the structural and contextual environment of the relationship remains unchanged over time.

Key Words: relational exchange • commitment • trust • opportunism • optimal control • relational marketing effort

Journal of Service Research, Vol. 7, No. 2, 142-154 (2004)
DOI: 10.1177/1094670504268421
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G. E. Fruchter and S. P. Sigue
Transactions vs. Relationships: What Should the Company Emphasize?
Journal of Service Research, August 1, 2005; 8(1): 18 - 36.
[Abstract] [PDF]