1School of Business, Bogor Agricultural University, Bogor, Indonesia
2Department of Management, Bogor Agricultural University, Bogor, Indonesia
3Prasetiya Mulya Business School of Management, Jakarta, Indonesia
4PPM School of Management, Jakarta, Indonesia
Research in marketing channel proves that managing relationship between partners, both individuals, and organizations, that manage distribution functions are very important. Successful principals require proper management of distribution channel to provide the best business performance. The management of marketing channel has been widely discussed as an important element in the supply chain and retail trading. Research on distribution channels generally takes economic concepts that explain distribution channels as a flow of goods and services. Interaction between principal and agent is the benefits optimization or minimization of costs, and neglect of non-economic factors. The development of research on channel management leads to non-economic factors which are describe the relationship between channel partners as a new era in principal and retailers relationships. The concept of relationship value is a social exchange theory aims to build long-term and sustainable relationships between partners.
New concept of marketing relationship model in channel management, drivers that affect relationship value to improving retailer performance. The four factors include personal value, financial value, knowledge value, and strategic value. High performance of relationship value will lead to more efficient and effective retailer transactions, then it is expected that the relationship will continue in the future so as to improve profitability.
Value, Principal, Distribution channel, Retailer Performance
