A1 Journal article (refereed), original research

Value added reseller or value at risk: The dark side of relationships with VARs


LUT Authors / Editors

Publication Details
Authors: Gupta Suraksha, Väätänen Juha, Khaneja Suyash
Publication year: 2016
Language: English
Related Journal or Series Information: Industrial Marketing Management
Volume number: 55
Issue number: May 2016
Start page: 110
End page: 118
JUFO-Level of this publication: 3
Open Access: Not an Open Access publication

Abstract
This paper examines the dark side of using reseller networks to provide after-sales services. A proposal made by previous research studies on the use of brand-reseller relationships for management of value to be delivered remotely through reseller networks was reviewed. Technical inability, with a focus on the sales of resellers of information technology (IT) and information technology-enabled services/products (ITES), was highlighted as one of the major challenges faced by brands. Unsuccessful delivery and failure of VARs to provide after-sales services puts brand performance at risk and, as a consequence, negatively influences perceptions of other resellers concerning the brand. Thus a VAR's inability to support customers can discourage resellers from offering the brand to their customers. This dark side of network interdependence negatively affects the shared brand-reseller goal of value co-creation. Applying data collected from 334 resellers of technology brands in India, this research focuses on the current periphery of international branding literature by focusing on the dark side of manufacturer brand-reseller relationships. From the relationship management perspective, we contribute to the recognition of value-at-risk as the dark side of the brand-reseller relationship. Based on empirical findings, we propose a business model that will enable manufacturer brands to control the brand value perceived by their resellers, by monitoring the actions of their VARs.

Last updated on 2018-19-10 at 08:49