Marketing managers must know the time orientation of a customer to select and use marketing tools that correspond to the time horizons of the customer. Insufficient understanding of a customer's time orientation can lead to problems, such as attempting a relationship marketing when transaction marketing is more appropriate. The author suggests that long-term orientation in a buyer/seller relationship is a function of two main factors: mutual dependence and the extent to which they trust one another. Dependence and trust are related to environmental uncertainty, transaction-specific investments, reputation, and satisfaction in a buyer/seller relationship. The framework presented here is tested with 124 retail buyers and 52 vendors supplying to those retailers. The results indicate that trust and dependence play key roles in determining the long-term orientation of both retail buyers and their vendors. The results also indicate that both similarities and differences exist across retailers and vendors with respect to the effects of several variables on long-term orientation, dependence, and trust.

Powerful suppliers often require retailers to make significant idiosyncratic investments to improve coordination between organizations and to enhance the supplier's presence in the end market. The authors examine how a retailer might better manage the hold-up potential of these transaction-specific investments (TSIs) through the use of three control mechanisms: supplier's TSIs, the development of relational norms, and the use of explicit contracts. Moreover, the authors consider the time-dependent nature of these mechanisms by observing their effects on commitment over the course of a relationship life cycle. The results indicate that (1) a retailer's TSIs have a negative effect on its perceptions of supplier commitment; (2) a supplier's TSIs and relational norms increase the retailer's perception of supplier commitment, whereas explicit contracts are associated with perceptions of lower supplier commitment; and (3) each of the three control mechanisms moderates the negative impact of retailer investments on perceptions of supplier commitment contingent on the relationship phase. Specifically, bilateral TSIs enhance commitment in the exploration phase and a positive effect during the decline phase. The results also indicate that the retailer's perceptions of supplier commitment are positively related to its evaluation of supplier performance and satisfaction and negatively related to conflict.

Product-harm crises often result in product recalls, which can have a significant impact on a firm's reputation, sales, and financial value. In managing the recall process, some firms adopt a proactive strategy in responding to consumer complaints, while others are more passive. In this study, the authors examine the impact of these strategic alternatives on firm value using Consumer Product Safety Commission recalls during a 12-year period from 1996 to 2007. Using the event study method, the authors show that regardless of firm and product characteristics, proactive strategies have a more negative effect on firm value than more passive strategies. An explanation for this surprising result is that the stock market interprets proactive strategies as a signal of substantial financial losses to the firm. When a firm proactively manages a product recall, the stock market infers that the consequence of the product-harm crisis is sufficiently severe that the firm had no choice but to act swiftly to reduce potential financial losses. Therefore, firms dealing with product recalls must be sensitive to how investors might interpret a proactive strategy and be aware of its potential drawbacks.

Many firms rely on external organizations to acquire knowledge that is useful for developing creative new products and reducing the time needed to bring these products to market. Cluster theory suggests that this knowledge is often obtained from organizations located in close geographic proximity. Specifically, proximity is assumed to foster heightened face-to-face communication, strengthened relational ties, increased knowledge acquisition, and enhanced new product outcomes. The authors identify the limitations of these assumptions and offer an enriched model of the influence of geographic proximity on new product development, which they test using both a cross-sectional survey of 155 firms in the U.S. optics industry and a longitudinal follow-up survey of 73 of these firms. They find that firms located in close proximity engage in increased face-to-face communication, but this communication has little effect on the acquisition of the types of knowledge that lead to enhanced new product outcomes. In contrast, they find that e-mail communication leads to both enhanced new product creativity and development speed. In addition, they find that relational ties moderate rather than mediate the path connecting geographic proximity and new product outcomes. These findings imply that the new product development outcomes typically ascribed to close geographic proximity may actually be attributed to strong relational ties.

Marketing academics and practitioners frequently employ cross-sectional surveys. In recent years, editors, reviewers, and authors have expressed increasing concern about the validity of this approach. These validity concerns center on reducing common method variance bias and enhancing causal inferences. Longitudinal data collection is commonly offered as a solution to these problems. In this article, the authors conceptually examine the role of longitudinal surveys in addressing these validity concerns. Then, they provide an illustrative comparison of the validity of cross-sectional versus longitudinal surveys using two data sets and a Monte Carlo simulation. The conceptualization and findings suggest that under certain conditions, the results from cross-sectional data exhibit validity comparable to the results obtained from longitudinal data. This article concludes by offering a set of guidelines to assist researchers in deciding whether to employ a longitudinal survey approach.