Segmenting high technology adopters

This article highlights a link between the innovative behavior of high technology firms and their buying. An empirical indepth study of 16 firms manufacturing electrical and electronic measuring instruments shows how components are bought by different types of firms. The findings suggest a useful basis for segmenting high technology industrial markets.     

Emerging models of organizational buying processes

The purpose of this article is to assess past and current trends in the literature on buying decisions by organizations and to look constructively toward future problems and developments. Until recently, organizational buying behavior has been largely ignored. There are, however, a number of promising developments, and we might be at the threshold of moving from alchemy to the beginning stages of scientific understanding.The article starts with a brief discussion of the “methodological” and “substantive” choices that can be made in studying organizational processes that underlie buying behavior. An appreciation of these choices is necessary for the examination of the past and current literature. The major trends in the study of organizational buying behavior are then identified and evaluated. Building upon these trends, we sketch the basic dimensions of the organizational buying processes and highlight some of the major problem areas to be faced in future research and model development. Throughout the article we assume some familiarity with the professional and academic literature in industrial buying.     

Centralized and decentralized buying influences

This article empirically measures the effects of organizational separation on industrial buying in the commercial construction industry. It was reasoned that the relationship between organizations and their buying centers should depend on the separations between organizational buying units. Two types of organizational separation were measured— geographic separation and communication separation. Industrial sellers must relate selling effort to buying behavior and procedures. This study reports on how buying influence varies between firms that operate at various levels of organizational separation. The managerial implications of matching the pattern of buying influence with appropriate selling effort is presented.     

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.     

Coalitions in organizational buying

It has been argued that many, if not most, organizational buying decisions are made not by individuals, but by coalitions. At the same time, coalition formation has been all but ignored in theoretical and empirical research on the buying process. This article discusses the nature of coalitions and their likelihood in industrial buying. Managerial implications of the presence of coalitions are drawn for both the industrial buying and selling organization.     

Conflicts of interest and agent heterogeneity in buyer brokerage

This article investigates the incentives of agents working with buyers (buying agents) under the fixed percentage commission system and the implications on housing market outcomes. Our model shows that the absence of a binding contract creates a risk of losing clients for buying agents, which helps mitigate the conflict of interest between buying agents and their clients. Both the buying agent's prediction accuracy regarding their client's reservation prices and the level of tolerance given by the buyer to the buying agent affect the binding force. Results from simulations and empirical analyses using house transactions in Canada support our model predictions.     

Understanding users' performance evaluation of IT solutions

Traditionally, buying center research in business marketing has long focused on the role of various buying center members, including users, in influencing purchasing decisions. Recent studies have also established the important role users play in successfully implementing information technology (IT) initiatives of buying organizations and its influence on future relationships with sellers. Consequently, in order to ensure future business, marketers need users to evaluate their solutions favorably. This study attempts to understand the factors influencing user evaluation of performance of sellers' IT solutions. Based on an inter-disciplinary approach, a model of antecedent factors to explain user evaluation of suppliers IT solutions is proposed and tested. Results gleaned from a survey of 361 users of Internet-based technology in an automotive supply chain indicate that user attitudes toward technology, satisfaction with the new technology, users' overall understanding of supply chain management principles, and job-related consequences influence user evaluation of IT solutions.     

New replacement part buying

This article reports on buying industrial equipment in the paper manufacturing industry. An analysis of written call reports by sales representatives at 26 paper mills, and interviews with sales representatives indicated that several generalizations on industrial buying behavior for this industry are possible. Buying behavior for the equipment part describes five decision stages and five overlapping buying centers.     

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.     

Salesperson influence tactics and the buying agent purchase decision: Mediating role of buying agent trust of the salesperson and moderating role of buying agent regulatory orientation focus

Little is known about antecedents of salesperson influence tactic usage or how and which influence tactics impact buying agent purchase decisions. To aid such understanding, we draw from the relationship selling literature, and both regulatory fit and focus theories, to propose a novel theoretical framework and test hypotheses. The study's findings, derived by applying the critical incidence methodology to a heterogeneous dataset of buying agents (n > 200) representing small and medium enterprises and acting as key informants on salespeople, show that: (i) salesperson influence tactics heterogeneously explain the buying agent's trust of the salesperson, (ii) trust of the salesperson serves as a mechanism through which influence tactics impact the buying agent's purchase decision, (iii) buying agent's regulatory orientation moderates the relationship between salesperson influence tactics and buying agent's trust of the salesperson, and (iv) salesperson regulatory orientation predicts a salesperson's use of particular influence tactics. The article concludes with a discussion of the practical and theoretical implications of the research.     

A critical review of recent organizational buying research

The purposes of this article are to examine the major contributions toward understanding industrial buying behavior and to suggest possible areas for future research. Many of the more recent studies have attempted to apply research findings in communications theory, consumer behavior, quantitative methods, and managerial decision theory in defining the decision process which constitutes industrial buying behavior. These research efforts have not been thoroughly evaluated.     

Buying process in the U.S. Department of Defense

The purpose of this article is (1) to compare the key differences between the buying behavior of the defense organization with commercial buying behavior, (2) to address key policy and strategy concerns of the U.S. Department of Defense (DOD) within the 1980s that also have strategic importance to the marketing operations of civilian contractors, (3) to address areas of proposed and completed policy change, strategy implementation, and emerging trends within the DOD buying process, and (4) to briefly identify significant research efforts and opportunities being sponsored by government agencies with important overtones and implications for marketing/purchasing practitioners and academics.     

Purchase process for capital equipment and services

This article develops some interactive dimensions of the industrial buying center. Buying group processes and outcomes were examined for purchases of capital equipment and industrial services in 31 firms. Qualitative as well as quantitative data were analyzed to test the soundness of an interactive communication perspective on buying, and the managerial implications to be drawn from such an analysis. Equipment and services purchase measures were found to differ reliably across several indices suggested by our theoretical orientation.     

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.     

Buying decisions in four Indian organizations

This article addresses the organizational buying structures and systems in India. The intent was to identify the emerging trends and changes that have taken place over a period of time in buying designs. The impact of these trends and changes on organizational marketers is considered.The four firms studied are large Indian firms, which will allow the readers of other countries to compare the situations between a developing country like Indian and their own. Case method of data collection has been used to capture both the details and perspective.The Indian buying scene has changed a great deal in the last decade. It has become more professional, systematic, and demanding. Failure to recognize this may lead to business failures.     

Reducing new product risk through understanding buyer behavior

The marketing of new industrial products can have a heavy impact on the effectiveness of customer service. The new product buying decision is always accompanied by perceived risk on the part of the buyer. Therefore, it is important for the industrial marketer of a new product to be able to empathize with this perceived risk, in order to help the buyer minimize it before the fact. This article explores industrial buying and new product adoption decision processes, and the role of perceived risk in these processes.     

An evaluation of the BUYGRID Analytic Framework

The purpose of this study was to perform a statistical evaluation of the BUYGRID Analytic Framework (BAF) to determine whether it is a general model of industrial buying behavior. The BAF is often used as a basic reference for other research studies, even though it has never been validated.This article also provides a new approach to understanding industrial buying behavior by identifying the influence of the informal system on the formal decision process and defines a decision-process model for the informal system.     

What factors influence buying center brand sensitivity?

Building on information processing theory (IPT), this empirical study investigates the factors that drive a buying center's level of sensitivity to brand information. The authors propose that buying center brand sensitivity is related in a curvilinear fashion with purchase importance and purchase complexity, and that these relationships are moderated by several environmental, firm, and product factors. Data provided by 273 organizational buying center members confirm the presence of an inverse U-shaped relationship between purchase importance and brand sensitivity, strengthened in conditions of high brand presence and high end-customer demand. Purchase complexity and brand sensitivity appear to relate in a U-shaped fashion but only in light of the moderating effects of product tangibility. The relationship between purchase complexity and brand sensitivity appears stronger when buying firms are small and have prior contractual ties with their selling partners. These results offer guidance to managers concerning when business-to-business (B2B) brand investments are likely to offer their greatest return.     

What drives post-adoption usage? Investigating the negative and positive antecedents of disruptive technology continuous adoption intentions

This article focuses on the pre-adoption antecedents of disruptive technology continuous adoption intentions at the firm level. Understanding how to make a quality adoption decision, as measured by the firm's satisfaction and intention to continue using the technology after the initial adoption phase, is of critical importance for a buying manager. Given this challenge, a model for disruptive technology continuous adoption intention is proposed that considers the following: pre-adoption interorganizational trust, mimetic competitor pressures, normative supplier pressures, efficiency motives, searching efforts, and post-adoption satisfaction. This model was tested using survey results from 211 recent purchasing managers of a cloud computing service, an emerging disruptive technology. Interestingly, normative pressures from supplying firms prior to adoption led to lower user satisfaction and, consequently, lower intentions to continue adopting and using the technology. Moreover, these pressures were driven by pre-adoption levels of interorganizational trust and mimetic pressures from competitors. Potential adopting managers of a disruptive technology should instead be driven by efficiency-oriented motives and actually aim to increase their searching efforts in order to better understand the disruptive technology prior to adoption. These findings add to prior literature demonstrating the complex interplay of external pressures and internal motives on technology adoption strategies.