Using guanxi‐style buyer‐seller relationships in China: Reducing uncertainty and improving performance outcomes

Abstract

Abstract Recent marketing literature has recommended that companies employ either long‐term relationship marketing or short‐term transactional approaches to buyer‐seller relationships depending on the value of the customer to the company. This article found that in China, guanxi‐style buyer‐seller relationships similar to relationship marketing were strongly related to reduced levels of perceived uncertainty about the business environment and a variety of improved performance outcomes. The use of transactional relationships was related to higher uncertainty and lower performance. The use of gifts and favors seemed more characteristic of transactional relationships and were not related to positive outcomes. Both quantitative evidence from American sellers and qualitative evidence from Chinese buyers supported these conclusions. It is argued that guanxi‐style buyer‐seller.

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