Segmenting a business market for a professional service

This article uses benefit segmentation to analyze the structure of an industrial market for professional services— the market for CPA services among business firms. Data were collected from a random sample of U.S. business firms, stratified to include a broad cross section of the market for CPA services. Benefit segments were described by linking CPA selection criteria importance ratings with client firm characteristics such as business firm size. Examples of ways in which information about market structure can be used in marketing professional services are presented. The results provide evidence about the applicability of prior industrial marketing research and multilevel industrial market segmentation models to a professional services market.     

Bases of power in organizational buying decisions

Managers developing industrial marketing strategy need information about the internal relationships among the key participants in an organizational buying center. This is particularly important in identifying the expected informal or nontask determinants in an organization's decision to buy. In this study, selected bases of power that tend to shape interpersonal influence processes in organizational buying centers are assessed for three key buying center participants in a new task purchase situation. The findings reveal the relative importance of selected bases of power, and differences in these relative importances by organizational position. The implications of these findings for the development of industrial marketing strategy are discussed.     

Organizations buying in new task and rebuy situations

Findings from a study of British industrial marketing managers support seven hypotheses on the relationship between buying classes and buying phases. Differences in the composition and size of buying centers in straight rebuy, modified rebuy, and new-task buying situations are examined. The managerial and theoretical implications of the study are discussed and compared with earlier work on organizational buying processes. The findings are related to the need for direct observation studies of buying decisions and behavior.     

Organizational buying in selected Yugoslav firms

Findings from a study of 14 Yugoslav industrial marketing managers support two hypotheses on the behavior of buying centers: (1) membership in the buying center changes through the buying process, and (2) top management playing a ratifying role of choices to maintain long-term, stable relationships between suppliers and customers may substantially affect exchange behavior.     

When the purchasing agent is a committee: Implications for industrial marketing

This article describes a research project that investigated the relationship between the purchasing decision process occurring within a firm and intrinsic factors relating to the product. The study determined the effects of product complexity on the procurement process and identified those dimensions of complexity to which participating departments are sensitive. The results of the study provide information of great value to the theoretical development of buying centers as well as to those involved in targeting industrial marketing efforts.     

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.     

Direct mail response factors for an industrial service

This article addresses the lack of quantitative research on industrial services marketing communications by providing a quantitative study of a direct mail promotion for an industrial service. Prenotification, the structure of the letter, the ethnic background of the signatory, personalization, and prequalifying the respondent were tested as factors influencing the response rate in the direct mail promotion. The results are useful as baseline information for current practitioners and to provide insights for the future development of theories of marketing communications for industrial services.     

Lateral influences and vertical authority in organizational buying

Eight hypotheses are developed to guide research on the prediction of two structural dimensions of organizational buying behavior. The structural dimensions examined are: (1) the extent of lateral influence on buying decisions; and (2) the distribution of vertical authority for buying decisions. Predictor variables include organizational size, environmental diversity, environmental uncertainty, and the scope, complexity, and newness of the purchases themselves. Some implications of the hypotheses for industrial marketing management are also developed.     

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.     

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.     

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.     

An applied theory for marketing industrial services

When the area of industrial marketing is discussed in the literature on marketing and marketing management, only the marketing of goods to industrial buyers are considered. However, a vast amount of services are also marketed in the industrial sector. There is some, although very limited, literature on professional or consultancy services, but the area is usually not thought of as a part of industrial marketing [1–3]. Recently, a few papers have been published where these services are treated as an integral part of industrial marketing [4, 5]. The purpose of this article is to suggest some frameworks concerning the marketing of industrial services.     

Realigning industrial marketing channels

Dramatic changes are occurring in industrial patterns of distribution. This article provides a structure for analyzing realignments in industrial marketing channels. Specifically, the analysis centers on the channel efficiency and effectiveness dimensions that were generated by a shift from industrial distributors to a public warehouse.     

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.     

Better use of the industrial marketing concept

Customer orientation is vital in order for industrial marketers to enjoy greater profitability in the industrial marketplace, which is at present characterized by rapidly changing environmental factors. These shifts include increased computerization of the purchasing departments, greater social and legal challenges to various buying organizations, deteriorating economic conditions and the changing role of the industrial purchasing manager. This paper suggests a way by which industrial marketers may adopt the marketing concept. The first part of the paper presents evidence of industrial marketers' failure to adopt the marketing concept and highlights the consequences of this practice. In addition, emphasis is given to the manner in which industrial marketers may adapt to the changing conditions—while capitalizing upon new opportunities that become available—by adoption of the marketing concept. The second part explores the use of market segmentation as a means for adopting the marketing concept. After reviewing the approaches that are now being utilized to segment industrial markets, a more pragmatic approach is presented.     

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.     

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.     

Personal inducement of industrial buyers

There has been extremely little previous research done on the use of personal inducements as a form of sales promotion in industrial marketing. An exploratory study was conducted in this area and the results are reported in this article. Buyers' attitudes about inducements and vendors' use of inducements were measured. Profiles of relatively more receptive buyers were derived from the study data. Implications for managing the buying and selling functions and for further research are discussed.     

The transition from product to service in business markets: An agenda for academic inquiry

In recent years, industrial manufacturers around the world have deployed growing efforts in developing services in addition to their traditional product business in order to secure long-term growth and to remain competitive in the marketplace. Against this background, the present article introduces the reader to this special issue. It first recalls key aspects of the emerging service-dominant logic of marketing and examines how it relates to the business marketing field. It then illustrates the challenges faced by top executives of industrial companies in the transition from a product-centric to a service-centric business perspective through an interview with the managing director of ThyssenKrupp Service AG. After discussing how the articles included in this special issue advance the extant literature on industrial services marketing, the article finally develops a number of directions for future research on services in business markets.     

Problem formulation in industrial marketing research

Marketing research is achieving increasingly greater recognition in the industrial marketing field as one of the major tools to assist management in decision-making processes. Its position in consumer goods marketing has long been well established, and its use has been widespread. At the present time industrial marketing research is becoming more accepted as a normal part of marketing management whose efforts are directed to the industrial markets for goods and services.