Marketing and Non-Market Based Value Creation: Gifts and “Guanxi”

Authors

Ron Berger Jerusalem Academic Center - Lander Institute, Jerusalem, Israel
Ram Herstein Jerusalem Academic Center - Lander Institute, Jerusalem, Israel

DOI:

Abstract

This conceptual paper analyses the general role of long term, non-market based value creation as being fundamental to business ethics and also to marketing concepts in societies in the 21st century. A framework is provided that combines the monetary nature of value in market-based exchange and the more social and emotional nature of long-term relationships. Particular attention is given to gift giving and to business interactions based on personal relationships, as exemplified in the Chinese concept of, “guanxi”. It is argued that they constitute important forms of value creation in a broad range of societies.

Author Biographies

Ron Berger, Jerusalem Academic Center - Lander Institute, Jerusalem, Israel

Ron Berger is the Head of Marketing at Jerusalem Academic Center - Lander Institute, Jerusalem, Israel. His research area is international marketing, cultural industries, and knowledge management. He has published in The Journal of Business Ethics, Service Journal of Business and Industrial Marketing, International Journal of Technology Management and others.

Ram Herstein, Jerusalem Academic Center - Lander Institute, Jerusalem, Israel

Ram Herstein is Head of MBA program and Associate Professor of Marketing, Jerusalem Academic Center - The Lander Institute. His research area is branding and corporate identity and his papers have been published in leading marketing and business academic journals such as European Journal of Marketing, Managing Service Quality, Journal of Consumer Marketing and others.