Determinants of relationship continuity between fashion retailers and suppliers in Brazil

Abstract

Fashion markets are characterized by increasingly short product life cycles and demand uncertainties. Due to these peculiarities, the patterns of relationships between suppliers and retailers have specificities that differ from more stable markets. This study identifies the aspects most valued by fashion retailers to maintain relationships with their suppliers in Brazil. The existing research encompassing distribution channels, as well as industrial and relationship marketing indicates the relevance of trust and commitment, their antecedents, and consequences. Based on the Morgan and Hunt KMV framework, we adjusted and tested a model in which supplier and seller elements are taken into account to reflect the characteristics of supplier and retailer relationships in the Brazilian fashion markets. Data were collected from a survey with 154 store brand product manager respondents from 29 firms, classified into four retail store formats: department stores, hypermarkets, upscale, and low-end specialty stores. Two distinct techniques were applied: SEM for aggregate data and factor analysis followed by multiple regressions for each retail format. Findings of qualitative and quantitative research indicate that the relationship continuity intention is mediated by affective commitment and by the trust dimensions credibility and benevolence, supporting the Morgan and Hunt Commitment and Trust theory. Six trust antecedents were identified in order of relevance: seller characteristics, agility, supplier competencies, willingness to agree, supplier values, and product development skills. Depending on retail format, product managers distinctly evaluated these trust antecedents, each one requiring a different approach by supplier and seller. © 2009 Gabler Verlag | GWV Fachverlage GmbH, Wiesbaden.