An exploratory study of the Internet as an industrial communication tool: Examining buyers' perceptions

A thorough understanding of the impact of the Internet on industrial purchase decisions is of critical importance for industrial marketers seeking to incorporate the Internet in their overall communication strategy. Accordingly, this study examines (1) the degree to which purchasing professionals perceive the Internet as useful, (2) how purchasing professionals are using the Internet for communication activities, (3) how the Internet compares to other promotional tools in influencing buyers' purchase decisions, and (4) whether differences among buyers can be identified relative to the perceived influence of suppliers' websites. The results provide some practical implications for industrial marketers regarding the use of the Internet relative to other promotional tools.     

The industrial proposal as a promotional tool

The industrial marketer's promotional tool, the formal proposal, has been little more than an informative but relatively dull statement of supplier qualifications and technical specifications. This article outlines the phases of conventional bidding or proposal preparation, employs exploratory research findings to help identify current weaknesses, and introduces the emerging storyboarding process as a stimulus to the increased vitality of the industrial promotional atmosphere.     

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.     

Information,Promotion, and the Adoption of Innovative Consumer Durables*

The diffusion of innovative new products is critically dependent on the transmission of relevant information to potential adopters. Existing research indicates that the relative effectiveness of different communication tools depends on the type of information being communicated. Written and verbal communication tools can be effective when consumers make adoption decisions based on search attributes. However, when adoption depends on experience attributes, marketers must find ways to effectively expose consumers to these attributes. In this paper the authors explore the effectiveness of promotional incentives in motivating consumers to engage in behaviors that should increase their understanding of an innovation's experience attributes. To the authors' knowledge, the research described here is the first published study of the relative effectiveness of different promotional vehicles in stimulating adoption of a consumer durable. The empirical analysis is based on data collected in a real‐world experiment involving 614 households. Just over half of these households received a free DVD movie disc as an incentive to participate in the study. The authors assigned the participating households to four treatment groups of 100 households each and a control group of 214 households. The households in the treatment groups received one of four promotional offers that featured some form of a $50 monetary incentive. These promotional offers differed in the degree to which they encouraged behavior that exposed consumers to the experience attributes of a DVD player. After one month the authors surveyed these households again to determine how many purchased a DVD player in the preceding month. An analysis of this experimental data reveals that all four monetary promotions significantly enhanced the probability of adoption. In particular, the average adoption rate among the households receiving one of the monetary incentives was 41%. In contrast, none of the households in the control group reported purchasing a DVD player. Promotions that paid consumers for specific behaviors that precede purchase were no less effective than a coupon that reduces the purchase price by an equivalent amount. In addition, promotions that directly exposed consumers to experience attributes were more effective than promotions that simply provided consumers with the opportunity to learn about experience attributes. Finally, the gift of a free complementary product (a DVD movie) enhanced the effectiveness of three of the four monetary promotions. The authors close with a discussion of managerial implications and directions for future search.     

A Review of: BUSINESS COST-BENEFIT ANALYSIS

This paper reports the findings of a survey of 427 large hospitals nationwide. The survey provided information regarding the techniques employed as primary and secondary tools of capital budgeting, the percentage of capital projects formally evaluated, the methods used in capital budgeting, the qualitative factors which influence the capital budgeting decisions and the extent of their impact in determining the acceptance decision, and the nature and frequency of involvement of the medical staff in major capital investment decisions.     

The impact of selling aids on new prospects

Once a firm has called a list of good prospects, it is necessary to turn those prospects into first-time customers. Through an empirical investigation in the business forms industry, lunches, plant tours, advertising specialties, and printed promotional material were evaluated as selling aids. Plant tours and lunches were found to be especially effective in turning prospects into customers.     

A sales mix model for effective industrial selling

The purpose of this article is to focus on one aspect of the marketing mix for industrial firms. Specifically, the control of promotion centers on the promotional mix, which includes personal selling, advertising, and sales promotion. The personal sales mix model (Figure 1) highlights those factors that are controllable by the industrial sales representative. Also, the uncontrollables involved in industrial selling are discussed. An understanding of the personal sales mix model should aid industrial marketers in satisfying buyer's needs through effective selling.     

Notes & Comments: University industrial units: some marketing aspects

All University Industrial Units were visited and information collected on aspects of their activities. The relative importance of promotional devices was ascertained and ⁺he role of the director examined. Some University Industrial Units still have difficulty in obtaining appropriate contracts.     

Decomposing response error in food consumption measurement: Implications for survey design from a randomized survey experiment in Tanzania

There is wide variation in how consumption is measured in household surveys, both across countries and over time. This variation may confound welfare comparisons in part because these alternative survey designs produce consumption estimates differentially influenced by contrasting types of survey response error. While previous studies have documented the extent of net error in alternative survey designs, little is known about the relative influence of the different response errors that underpin a survey estimate. This study leverages a recent randomized food consumption survey experiment in Tanzania to shed light on the relative influence of these various error types. The observed deviation of measured household consumption from a benchmark is decomposed into item-specific consumption incidence and consumption value so as to investigate effects related to (a) the omission of any consumption and then (b) the error in value reporting conditional on positive consumption. Results show that various survey designs exhibit widely differing error decompositions and hence a simple summary comparison of the total recorded consumption across surveys will obscure specific error patterns and inhibit lessons for improved consumption survey design. In light of these findings, the relative performance of common survey designs are discussed and design lessons are drawn in order to enhance the accuracy of item-specific consumption reporting and, consequently, measures of total household food consumption.     

Workers' Preferences in Concession Bargaining

Prior to recent contract negotiations, members of a very large United Steelworkers of America local union were asked to fill out a contract questionnaire regarding their preferences for various benefits and their willingness to strike to avoid making concessions. This paper reports the survey results and compares the members' pre-contractual preferences with the actual negotiated settlement.     

Sales management control and job performance

A national firm's salespeoples' perceptions of their management control system were related to their performance and satisfaction. Salespeople who perceived job goal clarity, control over their work, and job rewards as being based upon performance were found to be relatively higher performers and better satisfied with their job.     

Disclosing sales force pay increase

The motivation of sales people is partly achieved by matching pay or compensation to performance. This study addresses itself to the effects of publicizing or keeping the pay raises confidential.     

Buying an industrial service warehouse space

This paper reports the results of a study of the industrial buyer of warehouse space. The role of the purchasing agent and the other members in the buy group are identified and evaluated.     

Value analysis of a sales force

Has the work ethic of hard work and perseverance declined in younger salespeople? A difference in work values between younger and older salespeople could indicate the presence of a generation gap in this study of a national industrial firm.     

Impact of humor on survey responses

This study reports the results of an investigation of the use of humor to stimulate response rates in a mail survey of sales executives in 1000 firms. Results indicate that humor has little effect on response rate, response speed, or response bias and completeness.     

Marketing executives' perceptions of equitable salary increases

Employees' perceptions of fair and equitable salary increases is the subject of this article. Factors hypothesized to be the major determinants of the “perceived amount of pay that should be received” in Lawler's model of pay satisfaction are employed as predictor variables in a multiple regression equation context to explain the observed variation in executives' perceptions of fair and equitable salary increases. A national sample of industrial marketing executives were surveyed. A significant relationship was observed between employees perceptions of fair and equitable salary increases and a number of perceived personal job input and job demands related variables, current salary and wage history, and perceived non-monetary outcomes which are theorized in Lawler's model to be among the major determinants of the perceived amount of pay that should be received.     

Sales force evaluation with expectancy theory

The salespeople and their sales managers of two national firms were surveyed to examine the relationships between the salespeople's effort, performance, satisfaction, and propensity to leave their job. The 399 salespeople participating in the study were evaluated by their sales managers. Research results provide insights into the problems associated with correctly measuring performance and testing expectancy theory when salespeople are not evaluated on objective performance measures.     

A new method for routing salespersons

A new heuristic solution methodology for solving large-scale “traveling salesman” problems is presented. Significant features of the new procedure includes a rapid identification of node location and positive stopping.     

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.     

The lasting qualities of PERT: Preferences and perceptions of R&D project managers

This survey was conducted on the perceived popularity of PERT and PERT-type management systems; whether PERT'S applications were static, increasing, or decreasing, and whether its use was by choice or imposition. The extent of applications of PERT for managing various types of research and development (R&D) was examined with the view to ascertaining its individual popularity when applied to (a) basic research, (b) applied research, or (c) development projects. In addition, an inquiry was made into the estimated expense of PERT systems to plan and control projects as a percentage of the budget. The results of the survey are presented and discussed relative to various sizes of R&D organizations.