Investing in Buyer–Seller Relationships in Transitional Markets: A Market–Based Assets Perspective

Abstract

In this study, the authors explore whether investments in market-based assets outside of a market economy can be an effective tool for influencing buyer behavior. Using data from a sample of Russian physicians, along with both primary and secondary information on foreign pharmaceutical producers operating in Russia, they demonstrate that firms’ investments in market-based assets—which are positively associated with prescription behavior—are associated with physician perceptions of relationship quality. They further find that these investments are most effective when marketers and buyers reside in culturally similar markets. The results also indicate that relationship quality becomes less important for buyer behavior in the presence of authoritative mechanisms—a feature of market transition—and under conditions of low product complexity. In addition, the link between relationship quality and prescription behavior is stronger when manufacturers reside in countries that are politically similar to Russia. These findings demonstrate that the concept of “market”-based assets and their influence on buyer behavior and potentially firm performance may depend on the existence of at least certain characteristics of a market context.