The benefits and outcomes of high service channel relationships

This paper examines a wholesaler – retailer channel and differences in perceived benefits received by those retailers engaged in a high service relationship and those operating under a more traditional ‘arms length’ relationship structure. The findings indicate that resellers engaged in a high service relationship perceive that they receive benefits –classified as service, cost, flexibility and image benefits – to a greater extent than those operating under a traditional relationship structure. The former retailers are also more committed to their wholesaler. No significant differences in trust, conflict or overall satisfaction were identified. The paper concludes that delivery of the identified benefits offers a significant explanation as to why retailers are prepared to pay for a high service relationship with their wholesaler.