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Industrial Marketing Managem
Guanxi vs. relationship marketing: Exploring underlying differences
Cheng Lu Wang *
Department of Marketing and International Business, University of New Haven, West Haven, CT 06516, United States
Received 5 April 2004; received in revised form 6 April 2005; accepted 3 August 2005
Available online 5 October 2005
Abstract
The present paper attempts to explore the underlying mechanism between Western relationship marketing and Chinese guanxi by examining
the construct equivalence of the two concepts. First, it distinguishes guanxi from relationship marketing in terms of the personal and particularistic
nature of the relation. Second, it differentiates trust from xinyong, its counterpart in Chinese, based on a comparison of their roles in relationship
building and maintenance. Third, it discusses the unique meaning of renqing, which is proposed as an underlying mechanism that guides behavior
norms in guanxi and a mediator between trust or xinyong and long-term orientation. Finally, it concludes by discussing the managerial
implications for international marketers who wish to succeed in the Chinese business market and the importance of adapting Western relationship
marketing principles to guanxi marketing.
D 2005 Elsevier Inc. All rights reserved.
Keywords: Guanxi; Relationship marketing; Trust; Renqing; China
1. Introduction
Since the 1990s, relationship marketing has attracted much
attention from academics and practitioners, especially in the
business-to-business marketing (Dwyer, Schurr & Oh, 1987;
Ganesan, 1994; Morgan & Hunt, 1994; Sharma & Pillai, 2003;
Sheth & Shah, 2003). In contrast to transactional marketing,
relationship marketing focuses more on establishing, developing
and maintaining successful relational exchanges and good
customer relationship (Berry & Parasuraman, 1991). In rela-
tional exchange, the choice behavior is constrained through the
trust and commitment that develop between the two parties
(Morgan & Hunt, 1994). Parallel to this shift in the marketing
paradigm, there is a growing research interest in guanxi, which
has been considered the Chinese version of relationship
marketing or business networking (Ambler, 1994; Davies,
Leung, Luk, & Wong, 1995; Lovett, Simmons, & Kali, 1999).
Although some relationship marketing principles are regarded as
a key determinant for a successful business in China, the
uniqueness of Chinese culture makes the direct transfer of
Western relationship marketing principles into China or other
0019-8501/$ - see front matter D 2005 Elsevier Inc. All rights reserved.
doi:10.1016/j.indmarman.2005.08.002
* Tel.: +1 203 932 7209.
E-mail address: cwang@newhaven.edu.
Asian societies questionable. It has long been suggested that
‘‘there is . . . a need for more fundamental research in
international marketing in order to adapt establishment market-
ing concepts to the realities of the international marketplace . . .This is essentially a question of external validity and research
should be encouraged to determine which marketing principles
can be universally applied and which are basically ethnocentric’’
(Cunningham & Green, 1984, p. 9). To examine the construct
equivalence of key concepts when making cross-cultural
comparisons of guanxi with relationship marketing, some
related Chinese terms are defined here:
Guanxi It is composed of two Chinese characters, guan (gate)
and xi (connection). One must pass the gate to get
connected to networks. As such, guanxi generally
refers to relationships or social connections based on
mutual interests and benefits (Yang, 1994). It is a
special type of relationship that bonds the exchange
partners through reciprocal obligations to obtain
resources through a continual cooperation and
exchange of favors (Chen, 1995; Davies, 1995).
Xinyong While the term can be directly translated as ‘‘credit’’
(the word ‘‘credit card’’ in Chinese is xinyong ka), its
meaning is closer to the Western version ‘‘trust.’’
Trust, in Chinese business relations, is more based on
ent 36 (2007) 81 – 86
C.L. Wang / Industrial Marketing Management 36 (2007) 81–8682
one’s credit of ability of return favors than relied on
one’s integrity and competency, as in the Western
relationship context.
Renqing This is a unique term in Chinese cultures, often
referring to one’s emotional responses when con-
fronting various situations of daily life, a resource
that one can present to another person as a gift in the
social exchange process, and a set of social norms
that one should follow to get along well with other
people (Hwang, 1987).
Ganqing It refers to feelings and emotional attachment among
members of networks. It is often an indicator of
closeness of guanxi. The most intimate ganqing is the
qingqing, which is a blood-based emotional attach-
ment that only existed among direct family members.
In a business relationship where no qingqing exists,
one often does ganqing touzi, which means doing
investment with affection to build a good guanxi.
Western relationship marketing and guanxi do share some
basic characteristics such as mutual understanding, cooperative
behavior and long-term orientation. However, they have quite
different underlying mechanisms. For instance, guiding prin-
ciples of a relational exchange in most Western cultures are
driven by legality and rules, whereas guiding principles of
relational behaviors in guanxi are driven more by morality and
social norms (Arias, 1998). Trust, which plays a key role in
relationship marketing, does not have the construct equivalence
with xinyong in the Chinese culture and has limited impact on
the development and maintenance of guanxi. Instead, what
guides relational exchange behaviors in guanxi are reciprocal
obligation and mutual assurance, which are based on renqing, a
unique concept rooted in traditional Chinese culture. In
particular, guanxi is cultivated and maintained through the
exchange of renqing to attain mutual benefits.
The present paper attempts to explore such an underlying
mechanism by examining the construct equivalence between
relationship marketing and guanxi. First, it distinguishes
guanxi from relationship marketing in terms of the personal
and particularistic nature of the relation. Second, it differenti-
ates trust from xinyong, its counterpart in Chinese, based on a
comparison of their roles in relationship building and
maintenance. Third, it discusses the unique meaning of
renqing, which is proposed as an underlying mechanism that
guides behavior norms in guanxi and a mediator between trust
or xinyong and long-term orientation. Finally, it concludes by
discussing the managerial implications for international mar-
keters who wish to succeed in the Chinese business market and
the importance of adapting Western relationship marketing
principles to guanxi marketing.
2. Guanxi as a personal and particularistic relationship
Guanxi is a special type of relationship, but relationship
does not necessary mean guanxi. Hwang (1987) compared
three sorts of relationship. The first relationship is the
expressive tie, which occurs mostly among members of such
primary groups as family or extended family, and therefore, is
very personalized, stable and affect-driven. Because qinqing
(affection between members tied in blood relations) is
exchanged and resources are distributed on a need-basis,
reciprocity is not necessary, and guanxi is not important
(Davies, 1995). The second relationship is the instrumental tie,
which represents a temporary and impersonal relationship (e.g.
transactional relationships between the seller and the buyer)
with other people outside one’s family or extended family. In
the instrumental tie, the relationship is utilitarian-oriented, and
guanxi is also unimportant because the resource allocation is
based on contributions and individuals are treated alike on a
more objective basis (Davies, 1995). The third relationship is a
mixed tie, which has components of both the expressive tie and
the instrumental tie, but is sharply distinct from both of them.
Guanxi is a mixed tie relationship in which resources are
distributed in a beneficial way to individuals sharing the same
personal network. While the relationship is not as close to each
other as in blood relations, there exists ganqing or emotional
attachment between exchanging parties within the guanxi
network. Despite the fact that Western relationship marketing
is long-term oriented and emphasizes cooperative behaviors
between exchanging parties, it possesses more characteristics
of an instrumental tie that lacks ganqing. In general, guanxi
marketing differs from relationship marketing in the nature of
relationships: impersonal vs. personal and universalistic vs.
particularistic.
2.1. Impersonal vs. personal relationship
Relationship marketing is typically impersonal and mostly
at the organization level (Morgan & Hunt, 1994). Exchanging
parties in Western societies tend to have economic and
impersonal involvement in networking, and relational network-
ing is mainly associated with commercial goals. Guanxi
marketing, however, goes beyond the commercial meaning as
members in the guanxi network exchange both favor and
ganqing (affection) and, at times, its affective value is more
important than its monetary value in social interactions. Guanxi
works at a personal level on the basis of friendship and
ganqing is a measure of the level of emotional commitment
and the closeness of the parties involved. It is not uncommon
for a person to take his/her personal guanxi networks with him/
her when leaving the organization. From the business
perspective, people who have ganqing care about each other
and treat each other more like friends than just business
partners. Ganqing plays a key role in maintaining and
enhancing a guanxi relationship and makes the impersonal
business relationship more personal.
A business-to-business relationship that cannot be readily
imitated by competitors often involves ganqing touze (affect
investment) in the personal relationship, such as sharing inner
feelings or showing personal concerns. To achieve this,
exchanging parties need to acquire an in-depth knowledge of
their partners and to know what appeals to their needs (Yau,
Lee, Chow, Sin & Tse, 2000). Chinese people believe they can
only rely on those they have ganqing to protect them in times
C.L. Wang / Industrial Marketing Management 36 (2007) 81–86 83
of difficulties and to help them reach their goals in better time
(Jacobs, 1982).
2.2. Universalistic vs. particularistic relationship
Relationship marketing has a universalistic nature in that the
network is relatively open to any exchange partners as long as
one plays by the rule of game. This is because most Western
societies are considered high-trust cultures in which people can
trust each other even though they do not have blood relations
(Fukuyama, 1995). In such a case, written contracts are
necessary to bind the exchanging partners to follow the rules,
even among long-term relationship partners. Chinese society is
a low-trust culture (Atuahene-Gima & Li, 2002; Fukuyama,
1995), in which trust is extended only to the immediate or the
extended family members, and there is a lack of trust outside of
the family. As a particularistic relationship, guanxi network is
an exclusive circle of members because it embraces some
characteristics of expressive ties, which are based on blood
relations.
Guanxi is highly network-specific and does not generalize
to members of other social networks. Many observers have
noted that in comparison to Westerners, Chinese have a
stronger tendency to divide people into different levels of
categories and treat them accordingly in terms of ingroup–
outgroup boundary (Triandis, 1989). To develop guanxi is to
form the basis for a gradual transition from an outsider to an
insider so that a long-term close relationship can be built.
Entering such networks ensures trust building, decision-
making, and competitive advantages for network members
(Haley, Tan, & Haley 1998).
3. The different roles of trust in relationship marketing and
guanxi
Trust, along with commitment, is regarded as a fundamental
building block of a relationship model (Garbarino & Johnson,
1999), as it encourages marketers to work at preserving
relationship investments and to resist attractive short-term
alternatives for the expected long-term benefits by staying with
the existing partners (Dwyer et al., 1987; Ganesan, 1994;
Morgan & Hunt, 1994). Trust is a key factor in determining
long-term orientation because it fosters the focus on future
condition, which reduces the likelihood that the other party will
act opportunistically (Geyskens & Steemkamp, 1996).
In the relationship marketing literature, researchers gener-
ally consider trust as the confidence in the reliability and
integrity of exchange partners (Morgan & Hunt, 1994). As
such, the trust construct is believed to have two essential
elements; the partner’s credibility and benevolence (Ganesan,
1994; Kumar, Scheer, & Steenkamp, 1995). Credibility refers
to the belief that the exchanging partner will perform the job
effectively and reliably. When trust is based on such expertise
and reliability, it is expected that the exchanging party’s words
and/or writings can be relied on (Ganesan, 1994). Benevolence
refers to the belief that the exchanging partner will act in the
best interests of the other party and this is based on the
partner’s personal integrity and intentions (Anderson & Weitz,
1989; Dwyer et al., 1987).
Credibility and benevolence do not have the construct
equivalence in Chinese cultures. A related word for credibility
in Chinese is xinyong, which refers to a person’s credit rating in
business dealings. A trustworthy person is often referred to as
having xinyong, which means one’s ability to fulfill his/her
promise and obligation. However, xinyong, which often relies
on one’s oral commitment, in a certain way differs from the
Western concept of credibility, which largely relies on written
statement such as in a ‘‘system trust’’ (Luhmann, 1979). For a
system trust, a written agreement or legal contract is necessary
to reduce the reliance on people, and the trust is placed on the
system rather than the individuals. Impersonal enforcement of
regulations provides institutional protection as people need
only to assume that others are following the rules (cf., Kiong &
Kee, 1998). In contrast, since Chinese network system emerges
from personal agreement, not contracts (Haley, Tan, & Haley,
1998), xinyong is often built upon a person’s past history and
reputation to keep his/her promise or to fulfill his/her
obligation rather than being enforced through a legal contract.
As members in a guanxi network are connected to exchanging
information, one’s reputation of keeping a promise will be
established merely through word-of-mouth communications.
That is one of the reasons why an oral agreement is often
honored in business transaction within guanxi networks and
xinyong is only good for those who know each other well.
Disregarding one’s promise or obligation in a guanxi-based
relationship will lead to the ‘‘loss of face,’’ which will
eventually hurt one’s social functions and interactions within
the whole network.
Benevolence, as a belief in partners’ honesty and good
intention based on human nature, has less relevance to trust in
Chinese cultures. In terms of traditional Chinese values, ren
(benevolence), yi (righteousness), li (propriety), zhi (wisdom)
and xin (fidelity) are the five constant virtues. Interestingly, it is
not benevolence or ren, but xin, which also denotes faithful-
ness and obligation of paying debts of gratitude, that is most
close to the meaning of trust (cf., Yeung & Tung, 1996).
Developing networks of mutual dependence and creating a
sense of obligation and indebtedness are keys in building up
guanxi (Yang, 1994). As such, some researchers argue that in a
guanxi network, assurance, rather than trust, appears to be
more critical in the relationship (Standifird & Marshall, 2000;
Yamagishi & Yamagishi, 1994). Assurance, according to
Yamagishi and Yamagishi (1994), is an expectation of partners’
benign behavior based on the incentive structure surrounding
the relationship rather than partners’ personal traits and
intention. Indeed, ‘‘the mere threat of network expulsion
provides increased assurance that one’s exchange partner will
not act opportunistically, thereby replacing the need for trust in
the exchange relationship’’ (Standifird & Marshall, 2000, p.
24). Consequently, in a guanxi network, a temporary better
offer from outsiders would not be sufficient enough for one to
leave the current guanxi network, which provides benefits
ranging from financial to informational, social and emotional
support.
C.L. Wang / Industrial Marketing Management 36 (2007) 81–8684
4. Renqing: the underlying mechanism of guanxi
To understand guanxi, it is imperative to understand the
unique meaning of renqing in Chinese culture. The term
renqing involves exchanges of favors following certain social
norms and behavioral rules. Renqing provides leverage in
interpersonal exchanges of favors and is much more highly
elaborated and more tightly bound up with ideas of reciprocity
than it is in many other cultures (Hwang, 1987; Yang, 1994). It
can be understood in terms of two basic rules — reciprocity
and empathy — depending upon the participant’s role as a
recipient or a benefactor in the guanxi.
4.1. Reciprocity
The rule of reciprocity focuses on a recipient’s behavior by
the social norm expressed as ‘‘if you have received a drop of
beneficence from other people, you should return to them a
fountain of beneficence’’ (Hwang, 1987). People who share a
guanxi relationship in business are committed to each other by
the social obligation of reciprocity in that if an exchanging
partner receives a favor, he or she owes renqing to the benefactor
and should be ready to pay back once circumstances permit
(Hwang, 1987). To maintain a healthy relationship, Chinese
people place a high value on the obligation of reciprocation.
However, there is a difference between Chinese and Western
perceptions regarding both reciprocity and the time when a
renqing should be repaid. Western societies emphasize short-
term, symmetrical reciprocation in a balanced exchange
relationship, whereas Chinese recognize that renqing can be
paid back in the long run with an expectation that the
relationship will last into the unforeseeable future (Yum,
1988). Chinese believe that renqing need not be returned
immediately, as it can be stored and returned at the right time,
when the other party needs it. Indeed, renqing can never be
calculated objectively (Hwang, 1987) Whereas a cash debt is
easily repaid, it is almost impossible to repay the debts of
renqing. A long-term relationship is thus expected to last
forever based on such a circle, if only involved parties follow
the reciprocal rule. On the other hand, the relationship would
be endangered if the rule is violated.
4.2. Empathy
The rule of empathy focuses on the benefactor’s behavior
that is guided by Confucianism principle of forgiveness,
propounded by the ‘‘do not do unto others that which you
would not wish done unto you’’ and by its converse: ‘‘Do unto
others as you wish done unto yourself’’ (Hwang, 1987).
Empathy is the ability to see a situation from another person’s
perspective. The greater the degree of empathy, the fewer is the
barriers to the development of relationship (Conway & Swift,
2000). As Hwang (1987) noted, a person who is versed in
renqing is well equipped with empathy. In particular, a person
is viewed to possess renqing if he or she has empathy towards
others’ emotions and feelings and is ready to help others who
are in need.
In a high-context culture, what is not said is often more
important than what is said. Chinese people are unlikely to
communicate their preferences and opinions openly, so as to
avoid offending or for fear of being rejected by others. It is
important for a business partner to anticipate the exchanging
party’s needs and to know their feelings without being asked or
told (Yau et al., 2000). This is regarded as an ‘‘anticipatory
communication’’ in the context of ‘‘receiver-centered,’’ in
contrast to the Western ‘‘sender-centered’’ communication style
(Yum, 1988). When a business partner in a guanxi relationship
runs into troubles, the other party is expected to show
understanding and offer help. The benefactor would expect a
return of renqing from the recipient in the future when he or
she is in need for help.
5. Concluding remarks: the relationship between trust and
renqing in guanxi
Guanxi and relationship marketing in the West have several
similarities — exchange partners have long-term perspectives,
focus on the relationship itself rather than on a single
transaction, make efforts to preserve the relationship, try to
resolve conflicts in harmonious ways, and engage in multi-
dimensional roles rather than simple buying and selling (Arias,
1998; Dwyer et al., 1987). Based on above discussions it can
be reasoned that the underlying mechanism of relationship
marketing is different from that of guanxi. Trust and relational
commitment are the building block in relationship marketing,
whereas renqing, including reciprocity and empathy, is the key
to maintain guanxi. Trustworthy parties are more likely to lead
to long-term orientation; however, such a relationship is
operated through, or mediated by, an unspoken code of
renqing. The renqing rules set behavioral norms guiding
exchange parties based on face-saving and mutual insurance
rather than the belief of exchange partners’ integrity and
honesty.
Whether one is trustworthy, or possesses xinyong, is
determined by whether one’s behavior follows the reciprocity.
While the reciprocity rule of renqing will enhance the xinyong,
the empathy rule of renqing will maintain the relationship
given that empathy in business relations fosters understanding,
consideration, tolerance and forgiveness. Members in guanxi
relationships are expected to exhibit empathy for each other so
as to maintain the relationship. As such, in the Chinese sense,
trust is also comparable to the notion of uprightness, which
‘‘involves the ability and willingness to perform all the
expected behaviors at the appropriate times and in the
appropriate fashions’’ (Haley, Tan, & Haley 1998, p. 53).
Members in guanxi networks expect that both sides will
behave in an appropriate way and share mutual benefits.
In Chinese cultures, exchanging parties will be committed to
the reciprocal relation because of the structural constraints of
the guanxi network. Chinese business people tend to accept
xinyong from members within an exclusive circle or guanxi
network. However, mere trust or xinyong is not sufficient to
influence the long-term orientation of exchange partners. The
constraints on xinyong, is neither written contract nor partners’
C.L. Wang / Industrial Marketing Management 36 (2007) 81–86 85
benevolence, as those found in Western societies. Instead, it is
based on face-saving and renqing. Face-saving complements
the inherent weakness of oral agreement, which is often used in
traditional Chinese business dealing. Rules of renqing, such as
reciprocity and empathy, provide incentive for relational
commitment in the long run. The recipient is said to owe
renqing to the benefactor and should be ready to pay back the
debt of gratitude once circumstances permit. A person is
viewed as untrustworthy or has no xinyong and may lose future
exchange opportunities with all members in the guanxi
network when he/she fails to follow the rule of reciprocity.
On the other hand, the anticipation of repayment is the main
motivation for Chinese people to offer renqing to one another
(Hwang 1987). Guanxi will allow exchange partners to invest
more into the relationship, and commitment of one party is
likely to be reciprocated.
6. Managerial implication
While relationship marketing has enjoyed great popularity
in recent years, management practices may not be universally
applied because culturally defined values will affect their
effectiveness in different cultural contexts (Hofstede, 1992).
Companies that apply home country practices based on
Western theories without adaptations would suffer a variety
of setbacks in China. Western firms investing in China may
benefit more from seeking long-term partnerships through the
gradual development of guanxi networks than from relying
strictly on the more familiar contract-based agreements
(Standifird & Marshall, 2000). Hence, it is crucial for the
foreign business people to learn how to interact successfully
with the Chinese partner.
First, in a low-trust society, Chinese prefer to conduct
business with those who are ‘‘in’’ the networks rather than
someone who is new or an outsider. Such a particularistic
nature of guanxi establishes barriers for multinational
companies entering Chinese industrial markets. The term
guanxi is, interestingly, made up of two Chinese characters:
‘‘gate’’ and ‘‘connect.’’ Thus, one must pass the gate before
one can establish the connection with business partners in the
network. Guanxi converts business partners, who are other-
wise strangers, to insiders within the network. Therefore, in
order to build an effective business relationship with the
Chinese counterparts, foreign marketers must not only
understand the rules of the game for doing business within
the Chinese business environment, but also enter the guanxi
network as an insider. Some researchers of Chinese business
orientation noted that elements of both relationship and
transaction marketing coexist in many firms (Styles &
Ambler, 2003). In fact, whether a Chinese firm practices
relational orientation or transaction orientation is more a
matter of the ‘‘membership’’ of guanxi networks than a firm’s
general business orientation. In other words, while China is
often portrayed as a ‘‘relational society’’ (Styles & Ambler,
2003), it is also a low-trust society in which relationship
orientation is only applied to insiders of guanxi network but
not to outsiders of networks such as a foreign firm.
Second, for Chinese, business is not just a business, it is also
a social interaction, in which renqing or favor is exchanged.
Exchanges which take place amongst members of the guanxi
networks are not sorely commercial, but also social, involving
the exchange of favors and the giving of face. International
marketers can increase perceived similarities by developing
close and personal relationships and by enhancing mutual
understanding of each other’s business culture and find the
right contact persons in a potential partner firm. While a gift or
favor is often exchanged, ganqing or emotional attachment is
often more important in the long run. Gifts and, sometimes,
bribery may only establish a short-term relationship that is
easily imitated by competitors. A long-term relation based on
ganqing commitment and friendship within the guanxi network
will have a sustainable competitive advantage over outsider
competitors.
Third, while Western companies often judge partners based
on corporate image and brand, Chinese business-to-business
relation is often based on contacts or bonds with specific
individuals, not among organizations (Davies et al., 1995). The
social relationship is prior to and prerequisite for the business
relationship. Thus, developing interpersonal relationships and
mutual understanding at the personal level is a prerequisite for
business success. It has been observed that it is a common
practice for Western companies to rotate managers through
Asian subsidiaries and offices. Incoming managers, however,
do not automatically inherit the goodwill and networks of their
predecessors (Haley, Haley, & Tan 2004). As such, it is
important to understand the impact of personnel change on the
continuous functioning of existing guanxi.
Fourth, while legal contracts or written rules are becoming
more common in business transactions in China, xinyong,
which is often based on one’s reputation to fulfill reciprocal
obligation, plays a critical role in guanxi. Guanxi members are
frequently tied together through an invisible and unwritten
code of reciprocity, and the underlying motive for reciprocal
behaviors is face-saving. Those who violate the reciprocity rule
is considered not knowing renqing and Chinese people prefer
to do business with those who know renqing. Failing to return
renqing will not only result in loss of face but also result in the
loss of future exchange opportunities with all members in the
guanxi network. An unwritten xinyong is often the first step
towards a written contract. In particular, the reciprocal nature of
norms based on renqing and the emphasis of face-saving
provide the exchanging partners with safeguard mechanisms
from opportunistic behaviors and allow them to mutually
depend on each other.
Finally, the rules of renqing also imply empathy, which
involves understanding, consideration, forgiveness and, most
importantly, ganqing. An understanding of the empathy rule as
they work in Chinese society will enable international marketers
to better interpret Chinese firms’ exchange behavior and their
willingness to stay in the relationship with an exchange partner.
With renqing, trust between exchange parties can be established
and long-term relationship is expected. Without renqing, trust
can be lost and relationship will be ended. Therefore, relation-
ship stability or long-term orientation of exchange parties will be
C.L. Wang / Industrial Marketing Management 36 (2007) 81–8686
dependent on the exchange of renqing between exchange
parties. In other words, renqing mediates the effect of trust or
xinyong on long-term orientation. Sometimes, when one follows
the empathy rule of renqing may even rescue the relationship
when trust is lost. This is demonstrated by an episode discussed
by Kiong and Kee (1998).
‘‘. . .four established merchants wanted to purchase a rubber
estate. One of the merchants, Ang, approached the other
three and suggested that instead of outbidding one another,
they should cooperate. Ang was appointed as representative
to put up a bid. If he was successful, they agreed, verbally,
that the land would be divided equally. However, when Ang
finally secured the estate, he betrayed his xinyong and kept
the estate for himself. One merchant was extremely angry
but the other two decided to overlook the incident, due to
their ganqing and long-term guanxi. . . Thus, Ang was not
‘‘finished’’ despite his violation of xinyong’’ (Kiong & Kee
1998, p. 86).
As such, Western marketers entering China need to take a
more empathetic perspective by showing that they are
considerate, patient, and willing to offer assistance whenever
a need is detected. In addition, being empathetic also means
giving a renqing without expecting an immediate payback. A
long-term relationship is more likely when there exists an
unpaid renqing, as the rule of reciprocity expected by
exchanging parties keeps the relationship evolving and lasting.
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Cheng Lu Wang, PhD, is Associate Professor at the Department of Marketing
and International Business, University of New Haven. His research areas
include international marketing and cross-cultural buyer behavior. His
publications have appeared in Journal of Consumer Psychology, Psychology
and Marketing, European Journal of Marketing, International Marketing
Review, and Management International Review, among others.
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