Establishing marketing relationships in the advertising agency business: A transitional economy case
Long-term relationships between buyers and sellers are becoming a common form of inter-business interactions in the field of professional services. Due to the numerous advantages that such relationships bring to both sides in a business dyad (attaining transaction cost savings, strengthening the competitive or collaborative advantages, achieving growth in exchange volumes, etc), the theoretically and operationally important question is: How does a partnership develop into a long-term relationship?
Our research centers on the changes that occurred in the market of advertising agency services in Slovenia (see the Appendix for a background on Slovenia) during the process of the transition into a market economy. Although one of the youngest European countries (seven years old), Slovenia is already a member of the UN security council and a candidate for entering the European Union and NATO. Slovenia was always the most productive state in the former SFR Yugoslavia, and it is now the most developed among all the 'New Europe' or CEFTA states with an annual GDP of approximately $12,000 per capita.