A comparison of relationship marketing and Guanxi: its implications for the hospitality industry

Abstract

Purpose This paper describes the variables researchers have found to be significantly associated with relationship marketing, those related to Guanxi, and the similarities and differences between them. Design/methodology/approach The researchers reviewed 77 articles on the subjects of Guanxi and relationship marketing and identified seven constructs from the literature that apply to both Guanxi and Relationship Marketing. Findings These six constructs were investigated (bonding, customer loyalty, empathy, reciprocity, and satisfaction, and trust). Four constructs were associated with Guanxi (bonding, empathy, reciprocity, and trust) and while two (satisfaction, and customer loyalty) and a category termed other were commonly used with relationship marketing. Practical implications Guanxi concentrates on building the bond or relationship before the transaction in such a way that the company and customer become one cooperative unit. Relationship marketing deals with the transaction first and builds the relationship later. Relationship marketers could benefit from incorporating the principles of Guanxi in their strategies and tactics. Originality/value Many western managers are not familiar with Guanxi. Managers, who have an understanding of the Guanxi, can become more effective at relationship marketing.

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