Understanding Agency-Client Relationships Better Through Clients’ Perceptions of Value and Value Antecedents

Abstract

Understanding advertising agency-client relationships is important for marketers because of its strong theoretical and practical implications. There are several relevant theories for this field: professional services theory (Beverland, Farrelly, and Woodhatch, 2007; von Nordenflycht, 2010; West, 1997), agency theory (Bergen, Dutta and Walker Jr, 1992; Waller, 2004) and relationship theory (Berry, 1995; Lindgreen and Wynstra, 2005; Ravald and Grönroos, 1996; Storbacka, Strandvik, and Grönroos, 1994). As client’s participation is inevitable for knowledge-intensive ad agency services, agency-client relationships have practical implications and shape the outcome of advertising and/or communication mix that is in the core of cooperation.