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Abstract

In management literature, a psychological contract generally refers to an employee’s beliefs about the reciprocal obligations that exist between him or her and an organization. Legal contracts, on the other hand, are agreements that create obligations between the parties that are enforceable by law. Psychological contracts are different from legal contracts in that they are characterized by the belief that both parties have entered into a set of mutual obligations. While marketing scholars and practitioners have largely overlooked the notion of psychological contracts, this article argues that a firm’s customers might view the promises they believe a firm has made to them as psychological contracts. Psychological contracts are as relevant to marketing asthey are to management. This article expandsthe notion of psychological contracts to marketing relationships and outlines internal and external strategies firms can employ to manage psychological contracts more effectively.

5. Mutuality

The gold standard Just as mutuality is a crucial consideration, or what Rousseau (2004) calls the ‘gold standard’ for employers seeking to manage their employment relationships effectively, marketers should strive for mutuality in their dealings with consumers and their psychological contracts. Mutuality is as much a gold standard in marketing as it is in management, because in order for consumers and firms to have satisfactory ongoing relationships, they must have a mutual understanding of the obligations that characterize those relationships. The firm should not only deliver what it promises, but also, more importantly, strive to deliver what the consumer thinks it promised. We have taken ideas regarding psychological contracts that have been in the exclusive domain of management and argued that they are equally applicable to marketing. Many of the concepts in management literature have parallels in marketing under such principles as reciprocity and consistency and commitment as well as in the significant advances that have been made in the field of service quality. We have shown thatthe strategies that firms have implemented in order to overcome the problems caused by psychological contracts with employees are also relevant to how firms can manage their relationships with customers. Marketers taking heed of these might more often hear customers saying ‘‘You delivered what you promised’’ rather than ‘‘But you promised.