A model of long-term relationship value

A topic presently gaining much attention in the marketing literature has examined the close interactions of buyer-seller relationships. This paper examines the literature on buyer-seller relationships in order to identify the factors that add value to interfirm relationships. A typology of interfirm relationship value is developed, drawing on the work of Woodruff (1997), who defined customer value as comprised of three components: goal-based, consequence-based, or attribute-based value. The present paper extends this framework to an interorganizational relationship domain and proposes a model of relationship value based on the typology developed. The total value added through these factors is important in determining the total satisfaction of a firm with its relationship partners, and therefore is referred to in this context as relationship value.