S10 - Session O1 - Buyer-seller relationships in fresh produce retailing in France

Authors: Peter J. Batt *, Eleonore Coyral

As consumers become more concerned about better quality food, reducing their environmental impact, shorter distribution systems and more healthy eating, traditional marketing channels are being replaced by coordinated linkages between farmers, processors, retailers and institutional users. The literature suggests that the key variables influencing these long-term buyer-seller relationships are satisfaction, trust and commitment, the making of relationship specific investments, power and dependence. As most producers transact with multiple customers, this study sought to explore: (i) what producers ideally look for in their relationship with downstream customers; (ii) the extent to which their most preferred customer met those expectations; and (iii) to compare the extent to which their second most preferred customer met those expectations. The results show that the proportion of sales that are made to customers as well as the number of years working with them did not influence the producer's preference for their first customer over a second. Producers value several things from their customers: high prices and the absence of price pressure, regular and consistent orders, regular communication, adaptability, empathy, and a good reputation. In addition, some appreciate having a contract in place. On the other hand, producers complain about too many requirements, low prices, the regularity of delivery required by some customers, poor communication and that negotiations are complicated and difficult. Overall, relational satisfaction, trust and commitment have a positive impact on the producer's preference for their first customer over their second.