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.