Measuring perceived pre-purchase risk for a new industrial product

Risk is an important element in industrial adoption decisions. This paper proposes a method to investigate how different group of individuals influencing the adoption of a new industrial product differ in their assessment of the risks. Two dimensions of risk are distinguished: (1) the likelihood that adoption of the new product will have undesirable consequences, and (2) the perceived intensity of these consequences both at the organizational and at the individual level. Purchase consequences are measured in terms of product economics and product reliability. Multivariate analysis of variance is used to assess how decision participants differ in their assessment of risk components. An attempt is made to assess the relative importance of these various components in the formation of individual preferences. The implications of the analysis for the development of better industrial marketing strategies are discussed.     

A critical review of industrial market segmentation

This article reviews approximately 30 articles over the past 20 years that have addressed the topic of industrial market segmentation. The pursuit of a normative model to guide practitioners in segmenting industrial markets has made some progress with three identifiable models. There are a host of problems with the work done in the area both conceptual and methodological.     

Interaction based market segmentation

Purpose of this article is to evaluate the significance of market segmentation in situations of selling complex industrial products. The notion of “interaction based segmentation” is developed in this study.     

Evaluating market segmentation approaches

This article is concerned with managing and monitoring industrial market segmentation. The economics of market segmentation are overviewed, and an attempt is made to relate the segmentation tool to costs incurred. It is recommended that managers employ more economical methods of segmentation before using more costly parts of the marketing mix. A monitoring scheme is presented with two components that helps managers assess how well their segmentation strategy converts customers to the firm, meets market needs, and represents an efficient allocation of resources.     

Some factors in industrial market segmentation

Buyer-seller relationships are complex, especially in industrial marketing. A model for segmenting industrial markets is proposed and implications for organization buying behavior are summarized.     

Vendor segmentation: An additional level of market segmentation

This article describes a new conceptual approach, called “vendor segmentation,” which will be useful to industrial marketers in making their vendor evaluation and selection procedures more customer oriented, and hence more profitable, than conventional procedures. A practical approach for doing vendor segmentation analysis is outlined as a stepwise procedure, and the potential benefits and limitations of using this approach are discussed.     

Industrial product diffusion by market segment

This article focuses on the need to forecast diffusion patterns by market segment. The usual single market forecasts may be quite inappropriate if the market is segmented. Evidence is offered, based on the marketing of a new medical technology, that the diffusion pattern does vary by segment. The marketing of new technologies can potentially be improved by planning and forecasting on a segment by segment basis.     

Small business purchasing of capital equipment

This article concerns the results of a study employing consumer brand-choice methodology to explain the evaluation and buying decisions for light excavators by individual entrepreneurs. First, the purchasing of industrial products by small businesses is briefly discussed conceptually. Second, the buying decisions of Finnish contractors for light excavators were investigated with a multiattribute choice model. The results indicate that buying decisions are based on product attributes that differ from one excavator model to another. The usefulness of the selection model is evaluated, and a framework model describing factors affecting an individual entrepreneur's excavator buying process is suggested together with certain implications for marketers.     

Industrial buyer complaining behavior

Many areas of household consumer behavior research were extended to study organizational buyer behavior in the recent years. However, one exception is the buyer dissatisfaction and complaining behavior area. This article discusses the various conceptual aspects of organizational buyer complaining behavior. A model of buyer complaining behavior is proposed and some theoretical portulates are formulated for additional research.     

Impact of purchasing systems contracts on distributors and procedures

Under systems contracting the buyer is supplied with all of his MRO items from a single source. This article discusses some important marketing strategy implications of systems contracting for both the manufacturer and industrial distributor of MRO items.     

Industrial marketing education: Practitioner's views

A study of industrial marketing practitioner perspectives on industrial marketing education was conducted. Attitudes toward the educational process, definition of skills, continuing education, practitioner assistance in education and topic importance were queried. In general it was found that practitioners are favorably disposed toward industrial marketing education, are willing to assist in the educational process and have distinct perceptions on the nature of the educational process and how it should be carried out.     

Industrial sales management in the 1980s

This article offers suggestions for sales management in the 1980s. Experts believe that energy and other resources will decline, government regulation will increase, and increased attention will be given to social responsibility. Several recommendations for dealing with these anticipated pressures are presented.     

Industrial sales emphasis across the life cycle

Life-cycle stages require changes in both operations and management styles. Different personnel sales skills, qualities, and motivation are optimum for the various phases of industrial product life cycles. Early phases require creativity and informality. Growth phases require emphasis on operational planning, staging, training, optimism, problem solving, and stamina. Mature phases demand emphasis on efficiency, administration, judgement, and conservatism. Cutback phases place a premium on “hard-nosed” decisiveness, objectivity, judgement, and courage.     

OEM buying process for new components: Purchasing and marketing implications

This article identifies the buying process for a new component. In-depth case studies were conducted at a wide range of potential customers. The buying process was mapped or flow charted in each organization. A general model of component buying was developed.     

Using humor in the industrial selling process

Humor is an oft used promotional tool in advertising, and the question naturally arises as to whether humor can also be designed to accomplish specific goals in the industrial selling process. In this article, principles of humor are applied to the buyer/seller process, with particular reference to the steps of the sale. The judicious use of humor by the industrial salesperson can enhance the sales presentation and favorably influence the overall buyer/seller relationship, provided the salesperson has adequate knowledge of the capabilities and limitations of humor.     

Industrial buying behavior in Brazil

Many firms in less developed countries (LDCs) make little use of available information when they are considering investing in new production technology. A very small number of alternative suppliers are generally considered and supplier evaluation is often perfunctory. A number of questions concerning the information on alternative suppliers are raised and answers were sought in a field study carried out in Brazil. The factors that influence the degree of search by managers for information on alternatives included the relative cost of the equipment, the familiarity of the buyer with the technology, the cost of acquiring the information, the available resources of the company, and the buyer's expectations concerning quality and price, Implications for industrial marketing in LDCs are discussed and suggestions are made concerning the assistance that LDC governments can provide to firms that import production technology from the industrialized countries.     

A descriptive model of the trade-show budgeting decision process

Spending decisions for industrial trade shows are studied here. A discriminant analysis procedure identifies those factors that separate products that use trade shows from those that do not. The product category, fraction of sales made to order, industry sales level, importance of the product to the customer, and purchase frequency were found to be most instrumental. Another model evaluates the level of spending for products that use trade shows. The sales of the product and stage in the life cycle are shown to be most important in the budget-setting process. The potential use of these results for industrial communications and promotional planning and evaluation decisions is discussed.     

Industrial product adoption in a technology push industry

Studies of the industrial adoption of innovatious have frequently concluded that managerial attitudes are a crucial determinant of adoption behavior. However, these studies have usually offered hypotheses rather than rigorous tests. Equally important, these studies have not specified the characteristics of those managers whose attitudes exert a particularly strong influence on the firm's adoption policy.     

Industrial publicity: One of the best promotional tools

One of the most frequently forgotten and misunderstood promotional tools in industrial marketing is publicity. Yet most surveys rank editorial material in trade journals as one of the most important sources of information used by industrial customers in making buying decisions and evaluating products. This article discusses how industrial marketers can use publicity as an effective promotional tool, with emphasis on its major advantages, namely, high credibility and low cost per contact.