Biomass

Biography

Biography: Arthur T. House

Abstract

This presentation focuses on factors motivating the trend toward the enhanced duration of a buyer-seller relationship which will lead to long-term contractual relationships in an effort to contribute to a better understanding of the driving forces of ‘Trust and Commitment’ and their impact on the importing firms\' performance in an exponentially expanding market context. Traditional sales of wood chips exported from most North American suppliers are concluded as discrete transactions or ‘spot market’ transactions. In the business world and in academia, the reference to a “discreet transaction” is one that relationships can be built upon, however, it is in it’s pure form one that transpires having had no history between the parties, nothing ever has been nor ever will be. This is akin to there being money on one side of the ocean and the commodity (Wood Chips) on the other. One discrete transaction in the offering (spot sale) and no more expected to follow. At the core of Trust & Commitment marketing is exchange that is profitable to parties involved in the exchange. The concept of exchanges as it applies to Trust & Commitment marketing is viewed from either a transaction cost analysis approach or a social exchange theory approach. The ultimate goal in developing the enduring relationship is to foster and maintain a competitive advantage over rival firms in the industry.