Relationship management from the Key Account buyer’s point of view: the roleof frameworks contracts

Authors: Lacoste Sylvie

Relationship marketing seem to have become the new paradigm in marketing(Grönroos, 1994)1, and although it has been defined from the supplier’s point of view,it could apply to buyers as well, especially if it is related to the definition of a KeyAccount customer, which is seen as a customer that “ desires a long-term,cooperative working relationship as a means to innovation and financial success.”(McDonald &amp al.,1997)2.Key Accounts often want to set up cooperation strategies with “preferred” suppliers,which are defined by contractual agreements, called “framework contracts”. These arenot supply contracts, but are “umbrella agreements” that define how companies wantto interact (Mouzas &amp Ford, 20063).We have carried out an exploratory study among ten major French Key Accounts tostudy manufacturer-to-manufacturer relationships from the point of view of thecustomer.Our research provides empirical evidence of some paradoxical findings: frameworkcontracts are managed as an asymmetric relationship tool by powerful Key Accountbuyers, and whilst they appear to be contractual to suppliers, they are relational tothe Key Accounts, nevertheless,1. Framework contracts define mutual commitment and hence, interdependence,between Key Account buyer and seller 2. Framework contracts reflect the mutual benefits of value creation and sharing Our study discusses those findings.

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Publish Year: 2008

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