website advertising. The information age has caused a tremendous transformation in the customer's.
behavior and market demand. In this marketing environment, the relationship marketing took an.
extreme form in such a way that it was even institutionalized in their structure in some cases.
In Japan, in the vigorous pursuit of establishing relationship marketing, large manufacturers.
have established their own distribution channel, so that the wholesalers and retails are virtually.
operating by the control of these large firms. These large firms control the distribution channels by.
imposing their own price through intensive promotion and providing financial benefits to the.
wholesalers and retailers. The manufacturers were anxious to expand retail coverage to sell their.
products through their own new retail outlets throughout the country. These retail outlets are known.
as "keiretsu," or affiliated stores.
This practice of tight control of distribution channel by manufacturers has been subject of.
controversy over the years among the world communities. In particular, U.S. business community.
demanded that the strict control of the distribution channel by manufacturers be relaxed so that.
American firms can penetrate into the Japanese market. Article 23 of the General Agreement on.
Tariffs and Trade (GATT) dictates that a member country would have the same access and benefits.
in the competitive marketplace as the host country has. That is to say, open market free trade.
competition is promoted through the Agreement. This could be a strong basis for protesting against.
Japanese economic institutions and keiretsu practices [Johansson, l986].
This paper examines the history, structure, and impact of keiretsu system practiced by.
Japanese business firms in their marketplace. This study is of great importance to both academicians.
as well as business community, because it could provide secrets of Japanese marketing success as well.