Patterns of inter-organizational purchasing: Evolution of consortia-based purchasing amongst GP fundholders

In the last few years there have been considerable changes in the National Health Service in the United Kingdom. Arguably the most significant of these has been the introduction of competition into health care with the split of the health service into purchasers and providers of care. Central to this development has been the introduction of General Practice fundholding, whereby practices purchase health care for their patients directly from competing suppliers. Those practices that have become fundholders have faced considerable challenges in developing their purchasing function given the complexities of contracting within the context of the NHS internal market. Although one of the original aims of GP fundholding was to facilitate locally responsive purchasing, such have been the complexities of contracting that many fundholding practices have attempted to reduce the managerial demands of purchasing through membership of purchasing consortia. Based on an in-depth study of GP fundholders across Scotland, this paper explores the development of consortia-based purchasing in terms of the managerial implications for the participant practices of purchasing through such inter-organizational networks.     

Purchasing health care services: Information sources and decisional criteria

The introduction of a market mechanism into the National Health service in the UK was underpinned by the belief that decentralised purchasing would both improve the quality of health care provision and restrain spiralling costs, through purchasers exercising their ability to choose between alternative providers. Focusing on budget holding General Practitioners, that is those practices responsible for purchasing hospital services for their practice populations, this paper explores the evolving purchasing behaviour of these professional intermediaries. Drawing on empirical evidence gathered as part of a broader study of the purchasing behaviour of GP Fundholders in Scotland, specifically it examines the key information sources and decisional criteria utilised by these professional intermediaries in selecting health care providers for their practice population. Utilising relational models of market behaviour, it addresses both the contextually specific issue of whether the market mechanism within the NHS is achieving the twin objectives of improving health care provision and restraining cost pressures, and the broader conceptual issue of the purchasing behaviour of professional intermediaries within a service sector environment.     

The role of cultural values in green purchasing intention: Empirical evidence from Chinese consumers

Environmental problems, especially in the case of water and air pollution, are the harmful result of the overconsumption of fossil fuels as well as various forms of industrial sewage water discharge. Recently, growing environmentally friendly purchasing behaviour of consumers has become regarded as an effective method for alleviating such environmental problems. Due to concerns regarding the natural environment, consumers have increasingly begun to exhibit favourable attitudes towards environmentally friendly products, and as a result, are more likely to purchase “green” products. However, green purchasing behaviour of consumers varies across different nations and cultures. This study aims to reveal how Chinese cultural values (specifically, the Doctrine of the Mean) influence green purchasing intention of Chinese consumers. As the lifestyles of consumers will be deeply affected by their cultural values, this study examines the mediating effects of the four dimensions of Chinese lifestyle have on consumers. At the same time, environmental knowledge is considered as a moderating variable in order to investigate the relationship between the Doctrine of the Mean and green purchasing intention. The study’s data were collected from Chinese consumers. Empirical results reveal that such Chinese cultural values are positively associated with green purchasing intention, and that three dimensions of consumer lifestyle (namely leadership, cost consciousness and development consciousness), are all found to play mediating roles in the relationship between the Doctrine of the Mean and green purchasing intention in Chinese consumers. The moderating effects of environmental knowledge are exhibited in the influence of leadership as well as development consciousness on green purchasing intention. The study’s findings have theoretical implications for understanding green purchasing intention as well as behaviour of Chinese consumers further. The study’s findings also present practical implications for how to promote green purchasing intention in Chinese consumers better.     

Innovation sourcing excellence: Three purchasing capabilities for success

Innovation sourcing has become more critical across many industries. As global value chains have become more fragmented, change and opportunity comes from all sides. As a result, companies need to excel at capturing innovation opportunities with existing and potential supply chain members. This article describes a simple framework with three essential innovation sourcing capabilities needed to excel in purchasing: (1) Purchasing needs to explore unmet needs and anticipate future competitive advantages by working closely with other functions and clients; (2) it needs to explore external opportunities beyond first-tier suppliers; and (3) it needs to involve suppliers in innovation projects that consistently deliver results over time. Our framework has been developed based on a combined qualitative and quantitative research methodology that takes into account practices and results at the purchasing and company levels. The framework will help C-level managers and purchasing teams benchmark their progress in innovation sourcing and understand what steps need to be taken to achieve excellence.     

An exploration of the influence of food labels on South African consumers' purchasing behaviour

New labelling legislation in South Africa is expected to help consumers sustain a healthy lifestyle through the food choices they make. This study was undertaken to explore a sample of South African consumers' reasons for reading labels and the influence of food labels on their purchasing behaviour. The study was conducted using focus group discussions held with label reading consumers in Potchefstroom in the North West Province of South Africa. Findings suggested that these participants read food labels to assess the nutritional value, personal benefits, health attributes and product quality. Various purchasing influences were also identified, suggesting that consumers are in some cases motivated by food labels to purchase a product, or may be unresponsive to the label or indifferent by being aware of the information but not reluctant to buy a product that does not indicate essential information. Several indirect consideration factors such as situational factors (e.g. family), extrinsic (e.g. price) and intrinsic (e.g. taste) may contribute to the purchasing behaviour of some consumers. These findings are useful to propose a perceptual model of the way in which food labels influence purchasing behaviour of a sample of South African consumers and explain the role of food labels in the purchasing decision of label‐reading consumers. This information is especially significant for new packaging and labelling initiatives as it highlights the reasons why label‐reading South African consumers read label information.     

Automatic dishwashers: efficient machines or less efficient consumer habits?

Increasing costs for energy and water influence consumer decision making when purchasing white goods, such as dishwashers. Since the implementation of the European Energy Label, considerable improvements in water and energy consumption of dishwashers has been achieved, and for consumers, efficiency has become one of the main buzzwords when buying any major new household appliance. However, ownership of an efficient dishwasher in itself does not guarantee savings in energy and water during the course of the dishwashing process. Conservation of resources also requires changes in consumer behaviour. This paper provides empirical data on consumers' dishwashing habits in everyday life in four European countries, deals with the influence of their behaviour on the efficiency of the dishwashing process and highlights savings potentials in the usage of dishwashers. It reports on the results of a survey involving a total of 1209 online interviews conducted in winter 2006/2007. The survey data have been analysed to reveal the importance of various product attributes for consumers and show that low water and energy consumption values are the most important consideration for the respondents in terms of their purchasing decision. But this is compromised, at least in part, by less efficient dishwasher use, e.g. in pre‐rinsing dishes before placing them into the dishwasher and in the programme choice. In addition, differences in manual dishwashing practices between households with and without a dishwasher, as well as between countries, will be shown. Finally, conclusions are drawn for greater sustainability in the dishwashing process.     

Influences on member commitment to group purchasing organizations

Group purchasing organization (GPOs) have become an important part of some sectors of our economy, such as health care. To be successful at obtaining favorable purchase terms, a GPO must be able to foster and maintain the commitment of its members. Four positive influences on member commitment are hypothesized: (1) satisfaction with the GPO; (2) the perceived commitment of other GPO members; (3) the degree of information exchange between member and GPO; and (4) trust in the GPO. The suitability of alternatives to membership in the GPO was predicted to negatively influence member commitment. These hypotheses were tested with data from a mail survey returned by 249 (49.8%) retail pharmacies. A multiple regression analysis identified significant positive associations between member commitment and commitment of other members, information exchange, and trust. Also, the suitability of alternatives showed a significant negative relationship with commitment. Implications of the findings for managers and researcher are discussed.     

A different perspective on consumer engagement: exploring the experience of using health apps to support healthier food purchasing

ABSTRACT

Healthy food purchasing behaviour may be facilitated through the use of health apps if used for the necessary time period. However, little is known on the factors that influence the user experience and facilitate or impede their continued use. The purpose of the present research is to explore the lived experience of using a health app to support healthier food purchasing behaviour. Findings identify the presence of behaviour change motivation and anticipated effort levels as drivers of app engagement. It appeared that behavioural, cognitive and emotional dimensions of engagement may influence one another, driven by contextual influences, to simultaneously contribute to the intrinsic experience of engagement. The research makes practical and theoretical contributions to the consumer engagement literature and highlights the need to focus on understanding and capturing the specific engagement context to better understand engagement.     

What's inside matters: The impact of ingredient branding on consumers' purchasing behaviours in services

Ingredient branding has been widely used as a marketing strategy to create added value and enhance market competitiveness in a variety of durable and non-durable product categories. Despite its prevalence in practice, current research into ingredient branding offers little guidance for the services sector and is, in any event, limited to studies that analyse intentions rather than actual behaviours. This paper contributes to the literature by using scenario-based and field experiments to examine the impact of ingredient branding on consumers' purchasing behaviours in a service context. The scenario-based experiments highlight the mediating role of quality perception on willingness to pay, which increases by up to 9 % for a food item that is ingredient branded. The results of the field experiment show that the actual sales of an item increase by 40 % when it is ingredient branded. Consequently, this paper provides both theoretical and managerial insights into the favourable impact of ingredient branding on consumers’ purchasing behaviour. This paper concludes by proposing an agenda for future research.     

Strategic changes in purchasing: Two main tracks

Purchasing is going through an extensive process of change, and facing several challenges. In this study two important strategic tracks are identified and the underlying causes analysed. The first track entails an increased degree of purchasing, following from make-or-buy decisions: so-called outsourcing. The second tract entails decentralization of and coordination within the purchasing function. In three case studies, these two tracks have been found to be dominant aspects of change. They can be implemented simultaneously, but their driving forces are different. The companies examined have been chosen to make comparisons between a company within the automobile industry and two prominent companies within other engineering industries. Comparisons show that automobile manufacturers have unique prerequisites for going very far along the outsourcing track, owing to a combination of mass production and an end-product that contains many modules or subsystems. In terms of decentralization of and coordination within the purchasing function, the companies have more similar conditions and changes are more alike.     

Quantitative and qualitative insights into consumers’ sustainable purchasing behaviour: a segmentation approach based on motives and heuristic cues

The present study draws on the concepts of motives and heuristics to thoroughly understand consumers’ sustainable consumption behaviour in the context of personal care products. The mixed-methods approach combines real purchasing data with in-depth qualitative data to generate insights with a high external validity. In the first section of the study, quantitative analysis is applied to actual purchasing behaviour (n = 10,772,477) to identify market trends. Three main groupings, along with specific heuristic cues, are established. In the second step, a qualitative study (n = 21) provides deeper insights into consumers’ motives and decision-making processes. By synthesising the quantitative and qualitative research findings, a segmentation approach is developed. Relevant motives and values, and corresponding specific heuristic cues are identified for each consumer segment. Analysis suggests that consumers are motivated by self-interest and environmental motives, and that they use simple heuristic cues to make quick and satisfying purchasing decisions. Both retailers and manufacturers can leverage these insights to seize the opportunities of the developing market for sustainable personal care products.     

Investigating the gap between citizens' sustainability attitudes and food purchasing behaviour: empirical evidence from Brazilian pork consumers

Consumers worldwide are increasingly concerned with sustainable production and consumption. Recently, a comprehensive study ranked 17 countries in regard to their environmentally friendly behaviour among consumers. Brazil was one of the top countries in the list. Yet, several studies highlight significant differences between consumers' intentions to consume ethically, and their actual purchase behaviour: the so‐called ‘Attitude‐Behaviour Gap’. In developing countries, few studies have been conducted on this issue. The objective of this study is therefore to investigate the gap between citizens' sustainability‐related attitudes and food purchasing behaviour using empirical data from Brazil. To this end, Brazilian citizens' attitudes towards pig production systems were mapped through conjoint analysis and their coexistence with relevant pork product‐related purchasing behaviour of consumers was investigated through cluster analysis. The conjoint experiment was carried out with empirical data collected from 475 respondents surveyed in the South and Center‐West regions of Brazil. The results of the conjoint analysis were used for a subsequent cluster analysis in order to identify clusters of Brazilian citizens with diversified attitudes towards pig production systems, using socio‐demographics, attitudes towards sustainability‐related themes that are expected to influence the way they evaluate pig production systems, and consumption frequency of various pork products as clusters' background information. Three clusters were identified as ‘indifferent’, ‘environmental conscious’ and ‘sustainability‐oriented’ citizens. Although attitudes towards environment and nature had indeed an influence on citizens' specific attitudes towards pig farming at the cluster level, the relationship between ‘citizenship’ and consumption behaviour was found to be weak. This finding is similar to previous research conducted with European consumers: what people (in their role of citizens) think about pig production systems does not appear to significantly influence their pork consumption choices. Improvements in the integrated management of this chain would better meet consumers' sustainability‐related expectations towards pig production systems.     

Measuring Purchasing Groups Performance in the Health Care sector

For many decades, governments in Western countries have attempted to control health costs. One of the strategies used is through purchasing groups, since consolidated needs generate additional savings. Although various aspects of purchasing groups have been studied, performance measurement has been neglected; due to the lack of proper measures, tensions between the purchasing group and its members can't be addressed with more objective information. However, appropriate performance indicators are considered a prerequisite to successful collaboration. Using the in‐depth case of a Canadian purchasing group in the health care sector, this article suggests a set of performance indicators to measure results considering dimensions of the purchasing process and the interactions between the purchasing group and its members (who are also its customers). © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

The changing role of purchasing: reconsidering three strategic issues

The competitive pressures that act upon firms have led to major changes in the way in which purchasing is perceived - from a money-saving activity to a resource-planning function. In this paper the authors discuss some of the changes that purchasing has undergone and identify key concerns for the future, as purchasing moves towwards a new strategic role.     

Who are really purchasing environmentally friendly detergents?

This paper investigates the purchasing behaviour of environmentally friendly detergents in Belgium on the basis of a binomial logit model. The results of this analysis shed some light on the extent to which household characteristics influence demand for environmentally friendly detergents. The estimated determinants of revealed preferences are compared with the results from previous stated preference research. Although the positive influence of population density on the chance of purchasing environmentally friendly products could not be confirmed, the estimation results corroborate the importance of household size, age and socio-economic class (yuppie factor).     

The impacts of instructional video advertising on customer purchasing intentions on the Internet

As the application of the Internet has grown rapidly, electronic commerce is expected to become increasingly prosperous. In addition, since the launching of the Internet, more media in advertising have appeared. Online customer experiences and Web 2.0 are believed to be two of the driving forces behind the growth in online sales. A more advanced advertising medium is thus needed to stimulate customers’ purchasing intentions. One creative medium of advertising on the Internet is instructional video advertising. It provides instructions on how to operate the products being sold and/or on how the products function. Hence, the customers may in this way view the advertising, and finally the intention to purchase may be triggered. In order to explore how Internet instructional video advertising may affect customers’ purchasing intentions, we propose a new model that adopts the theory of reasoned action, the technology acceptance model, and others. We perform the survey to analyze how instructional video advertising may impact customers’ purchasing intentions.     

Fear appeals and coping appeals for health product promotion: Impulsive purchasing or psychological distancing?

The prevalence of online health communities (OHCs) motivates health product companies to manipulate persuasion-based marketing strategies, including fear appeals and coping appeals, to promote health products. However, whether such a practice is effective remains unclear. Respondents may either impulsively purchase the recommended health products or simply distance themselves psychologically from the information. Building on protection motivation theory (PMT), this study uncovers the mechanisms behind these two coping responses to persuasive messages, namely, the impulsive purchasing and psychological distancing of OHC users. Correspondingly, we evaluated 366 valid questionnaires, and the results reveal that (1) when encountering fear appeals, perceived health threat can evoke cyberchondria, leading to psychological distancing; and (2) when encountering coping appeals, perceived response efficacy leads to product affection, fostering impulsive purchasing. This study provides new insights into the effects of persuasive messages for health product promotion in social commerce. Marketers should design appropriate persuasive messages to foster impulsive purchasing by generating individuals’ product affection and avoiding cyberchondria.     

Consumer behaviour of children in primary school age

Most research on consumer behaviour is concerned with adult behaviour, because the purchasing power of a household lies predominantly with the adults. However, children do undertake the management of a certain amount of money at early ages, and the importance of children, obviously an integral part of the family, in overall family consumption has been increasing gradually. In order to help children become ‘conscious’ consumers, it would be most useful to treat them separately for the purpose of defining consumer behaviour. In this research, using a population of 300 pupils, in the age groups of 8–9 years and 11–12 years, from six primary schools of different socio-economic levels, the consumption behaviour, behavioural forms of purchase and factors influencing such purchase forms of purchase forms of children have been studied.     

Threshold effects,technology purchasing,and firm outcomes: An absorptive capacity perspective

External technology purchasing is frequently adopted as a strategy to facilitate technology innovation and to enhance firm performance. However, research shows that there is considerable heterogeneity across firms with respect to innovation output and firm performance after technology purchasing. This study uses an absorptive capacity perspective in proposing the existence of an R&D employees threshold and a technology purchasing scale threshold. Using a sample of 1460 high-tech companies in China, we find support for both thresholds. We also find that the two variables are complementary with each other, jointly promoting innovation when both thresholds are crossed.