Effect of time on a marketing strategy

A firm that had enjoyed considerable success in the marketplace during the early stages of the product life cycle found itself losing market share. The firm and its competitors had not changed their marketing strategies since the introduction of the product. This article describes the results of research examining possible causes for the market reversal. It Was discovered that the nature of the organizational buyer and his buyer behavior changed in a predictable manner since product introduction progressed. These changes made the competitors' marketing strategy more effective and probably caused the market reversal. The implications for this firm and for firms marketing innovative products in general are discussed.     

How valid is the buy-grid model?

The purpose of this paper was to test the effects of product type and purchase experience on industrial buyer behavior. The research was conducted in the commercial construction industry. The findings indicate that product type is a meaningful variable which is related to industrial buyer behavior; however, the purchase experience variable or buyclass variable is not significantly related to buyer behavior as measured in this study.     

Impact of organizational and buyer characteristics on the buying center

A mail survey of 200 organizational buyers was conducted to determine if the number of individuals in the buying center or the amount of perceived self-influence varied by organizational and buyer characteristics or by the type of purchase decision. The results of the study indicate that the type and size of the firm, as well as the buyer's educational level, affect both the number of individuals in the buying center and the amount of perceived self-influence of the organizational buyer. The results further indicate that the size of the buying center increases and the amount of perceived self-influence decreases as the purchase decision becomes more complex.     

The purchase of components: Functional areas of influence

The Webster and Wind model of organizational buyer behavior enjoys considerable popularity. However, not all of its constructs and relationships among constructs have been validated by empirical research. The purpose of this study was to provide empirical evidence concerning the relationships between three of the model's critical constructs: buying center membership, purchase situation, and purchase phase. The relationships studied were variations in the perceived relative influence of different functional areas (e.g., production, marketing, purchasing, etc.) across three purchase situations and four purchase phases. The results of the study clearly indicate that the functional areas are generally perceived to have varying amounts of influence across both the purchase situation and purchase phase. These results have specific implications for developing effective industrial marketing strategies.     

Vendor selection and the buying process

This paper reports the results of a study dealing with the vendor selection process in organizational buying. Purchasing managers in two different types of organizations assessed the importance of vendor attributes and buyer information sources in connection with two different buying tasks. Theoretical and managerial implications are discussed in connection with: (1) the relative importance of vendor attributes and buyer information sources; and (2) the influence that different buying tasks and different buying organizations have on the importance of vendor attributes and information sources.     

An experimental approach to segmenting buyers of marketing research

Successful industrial market segmentation may often depend on the marketer's ability to identify key characteristics influencing purchase preferences. Environmental, organizational, and personal factors are all potential determinants of buyer response patterns. Recent attention to microsegmentation processes has focused interest on personal level factors and how these are modified by organizational and situational variables. Utilizing a simulated buying experiment, this study explores a simplified approach to microsegmentation that emphasizes information readily available to industrial vendor representatives.     

Marketing to firms in developing asian countries

The Newly Industrialized and Developing Asian countries represent a substantial and growing market for capital goods and for industrial components. Industrial buyer behavior among firms in these countries is different from that exhibited by firms in the advanced, industrialized countries. Therefore, different marketing strategies are required to penetrate NIC and LDC markets. This article discusses industrial buyer behavior in the NICs and LDCs and makes recommendations for marketing strategies.     

Changes in industrial buying: Implications for industrial marketers

Some of the most dramatic changes in organizational buyer behavior have occurred and continue to occur in the industrial purchasing function. Purchasing is becoming less and less a lower-level staff function and more and more a top-level management position. This article examines some of the major changes in the purchasing function and the reasons for those changes. The article concludes by considering some of the major implications of these changes for the industrial marketer.     

Organizational size and buying influences

This article evaluates organization size as a segmenting variable and as an influence on industrial buyer behavior. The results demonstrate that organization size is an important factor in predicting certain aspects of industrial buyer behavior.     

The effective use of marketing research consultants

Relatively little has been written about effectively managing the buyer-seller relationship for marketing research services. To provide insights into effectively managing this relationship, a survey of both buyers and sellers of marketing research services was conducted. Major findings were that proper problem definition, a familiarity with research methods by the research buyer, and continuous communication between buyer and seller were critical determinants of a successful consultant relationship. For best results the market research buyer-seller relationship should be treated as a mutually beneficial one, not one of conflict or acrimony.     

Boundary spanner relational behavior and inter-organizational control in supply chain relationships

Boundary spanner relational behavior is considered critical in the successful management of buyer–supplier relationships and may help avoiding high costs of more formal inter-organizational controls. Yet, the influence of partners' boundary spanners on effective supply chain collaboration has had much less inquiry than the influence of broader inter-organizational controls. We use survey data of 200 buyer–supplier relationships to examine how these individual and organizational control mechanisms influence the performance effects of interfirm collaborations that vary in scope of activities undertaken. Findings show that collaboration scope as well as boundary spanner relational behavior and inter-organizational controls are positively associated with performance. The effect of collaboration scope on firm performance, however, also depends on both mechanisms but in opposite directions: while its influence on performance is enhanced by inter-organizational controls, relational behavior of partners' boundary spanners has a negative moderating effect, indicating that such behavior contributes more to the effective management of collaborations of narrow scope than those of broader scope.     

True vendor loyalty or simply repeat purchase behavior?

Local customers—usually defined as those who tend to concentrate their purchases within one or a limited number of brands or stores—have long been of major interest to marketing practitioners and academicians. In organizational purchasing literature, however, little attention has been focused on this important dimension of buyer behavior. The purpose of this article is to underscore the importance of the loyal customer, to distinguish between simple repeat purchasing and true loyalty, and to examine the reasons for such consistent purchase behavior.     

The origins of power in buyer–seller relationships

Who, or what, holds power in business-to-business buyer–seller relationships is a debate at the heart of power theory. Power in buyer–seller relationships is variously seen as the property of organizations, individuals or relationships yet to be theoretically valid and useful to management, integration of these schools of thought needs to be operationalized. This paper opens up future research avenues through identifying how buyers and sellers understand the origins of power and the nature of self perceived and countervailing power. The paper presents results from 10 focus groups of both buyers and sellers revealing the underlying origins of experienced power. The results support the proposition that power in buyer–seller relationships is a pluralistic concept and that extant theories focused on organizational, individual or relational elements of power are independently too narrow in their reflections of the power construct; rather, they are all part of the same broad construct.     

Buyer attentiveness in buyer-supplier relationships

How do a manufacturing firm's (supplier) relationship marketing activities lead to more profitable business-to-business (B2B) customers? This research proposes that a supplier's relationship activities develop a buyer's attentiveness toward the supplier, which, in turn, leads to profitable buyer purchasing behaviors. Findings from 119 buyer organizations support this contention, and, additionally, buyer attentiveness was found to have a stronger positive influence on favorable buyer behavior than does either buyer dependence or relationship length. This study contributes to our understanding of long-term buyer-supplier relationships in B2B markets.     

Customer response to dissatisfaction: A synthesis of literature and conceptual framework

Business-to-business customers who are dissatisfied with services or products may respond by voicing complaints, by exiting the transaction relationships, by spreading negative word-of-mouth (WOM) about their experiences, and/or by continuing the transactional relationships as they are. The authors synthesize extant customer (dis)satisfaction response behaviors in the organizational buyer behavior literature, and discuss within-firm and third-party recipients of voicing and negative WOM. A model of customer response behavior is disclosed featuring possible influences of exit, voice, loyalty, and negative WOM: number of alternative suppliers, past complaint response behavior, number of years in relationship, and type of purchase. Propositions are provided on the effects of influence variables on response behavior relationships.     

Managing risk in contract pricing with multiple incentives

A significant amount of industrial marketing occurs in response to efforts initiated and managed by the buyer through a contracting process. Often the contract involves research, engineering, development, and test/evaluation of products with considerable risks. This article discusses techniques used to evaluate sources of risk in contracting and methods to distribute and manage these risks between the buyer and seller, focusing principally on multiple incentive, multiple-formula pricing mechanisms.     

Buyer opportunism in business-to-business exchange

A phenomenon of significance in buyer–supplier relationships is opportunism. In lieu of the known negative effects of opportunistic behavior on buyer–supplier relationships, the circumstances in which a sourcing professional engages in acts of opportunism are unclear. Combining theories from multiple disciplines, a comprehensive model tested buyer–supplier relationship-specific factors, environmental factors, an individual-difference factor, and situational factors likely to affect a buyer's decision to use opportunistic tactics. Results reveal how these different theories combine to provide a more comprehensive explanation of buyer behavior than existed in prior literature. Using structural equation modeling of a sample of 328 procurement transactions, factors found to affect buyer opportunism included buyer power, corporate ethical values, honesty/integrity, leader opportunism, willful ignorance, and subjective expected utility. This study also provides empirical support for distinguishing between two types of opportunism — strong and weak. The research concludes with implications for theory and practice, limitations, and areas for future research.     

Pricing practices in two industries

Although a critical part of marketing decision making, very little has been written about industrial pricing policy and strategy. This article has three objectives: First, to report the pricing practices of the chemical and construction industries; Second, to compare their pricing policies; and third, to develop a simple pricing framework for industrial marketers. The results of this study are interesting and somewhat unexpected. The buyer and his behavior only play a small part in pricing policy. A pricing framework or model is presented in a logical and systematic way.     

Securing business-to-business relationships: The impact of switching costs

While the relationship marketing literature acknowledges the importance of switching costs for increasing customer retention, little is known about its relevance in industrial markets. In particular, it is unclear whether switching costs, and associated dimensions, impact on behavioral outcomes of buyer–seller relationships in business-to-business (B2B) markets. In order to contribute to theory development in this important area, our research first explores the dimensions of switching costs for the B2B domain and also tests the relative impact of these dimensions on business customers' actual purchase behavior. Results suggest that switching costs in B2B settings are a multi-faceted construct, including (i) procedural, (ii) financial, and (iii) relational switching costs. Moreover, we find relational switching costs to be most important for securing B2B buyer–seller relationships since they impact a customer's (a) share-of-wallet, (b) cross-buying behavior, and (c) actual switching behavior. While procedural switching costs only influence share-of-wallet, financial switching costs solely impact customer's cross-buying behavior. These findings contribute to a better understanding on how to secure B2B buyer–seller relationships.     

Power,buyer trustworthiness and supplier performance: Evidence from the Armenian dairy sector

The paper presents a Multiple Indicators and MultIple Causes (MIMIC) model for explaining the relationships between buyer-seller power, buyer trustworthiness and supplier satisfaction / performance. The model draws on an organizational supply chain perspective of power and is verified using data relating to dairy farmers’ relationships with their main buyer in Armenia. The analysis indicates that buyers are more trustworthy where there is greater competition for supplies. Buyer trustworthiness is also positively correlated with both the size of a supplier, as well as a supplier being a member of a marketing cooperative. Buyer trustworthiness has a positive impact on suppliers’ satisfaction (regarding their relationship with their main buyer) and enhances the quality and quantity of suppliers’ output.