Organizational buying effectiveness in supply chain environment: A conceptual framework

The idea of effectiveness measurement in supply chain context stresses the importance of value development process for the forthcoming member of the chain. The main purpose of this paper is to develop a conceptual model of organizational buying effectiveness in the supply chain context, emphasizing the importance of marketing orientation in the purchasing process. Literature has revealed that there are many focal interaction points between relationship marketing, supply chain management, and organizational buying. The effectiveness framework was developed regarding the value perception, organizational buying involvement, and decentralization of decision making     

Consumer strategic decision making and choice process: prefabricated house purchase

This study examines the consumer choice process in case of strategic purchases, such as house buying. In view of the existing literature exploring consumer decision making and choice for strategically important products, the purpose of this research is twofold: (a) to develop a conceptual model of strategic decision making; and (b) to empirically explore this model with regard to prefabricated house purchases. The results of our qualitative research suggest that in addition to the idiosyncratic characteristics of the customer, his or her personal situation, environmental factors, the role of feelings, experience, subconscious factors, needs, and goals should to be taken into account to better understand strategic consumer decision making and their choice process when buying a house.     

International Buying Center Analysis – The Status Quo of Research

In industrial markets purchasing decisions are made by buying centers. Sellers thus have to analyze buying centers in order to generate effective strategies and measures. If we consider progressive economic globalization in this context, it becomes clear that a success promising analysis of buying centers cannot take place from a purely national perspective. On the contrary, the current ongoing globalization process emphasizes the importance of international investigation perspectives and the need to obtain international findings regarding market powers, processes and decision-making elements. There are numerous differences between buying centers in different countries. However, the international buying center analysis is only at an early stage of development. Most studies only analyze one aspect of the complex multipersonal decision process and mostly only for few countries. Thus we identify a lack of comprehensiveness in international buying center research and reveal some interesting starting points for further research.     

How buyers frame problems: Revisited

This article investigates the following propositions: a useful approach for building an organizational‐buying–behavior taxonomy might begin with classifying how buyers frame purchasing problems followed by how such frames affect subsequent perceptions and actions in the decision process. Unlike previous taxonomies of buying situations, direct questioning of organizational buyers is used to learn: (1) whether or not they identify different categories of buying problems; (2) if they do, what dimensions they use when framing buying problems; and (3) how do such frames influence their choices of value‐added service alternatives offered by suppliers. To test the propositions empirically, supplier choices are modeled with the use of buying‐decision exercises. A key result of this study is that the buyers’ framing of problems affects their preferences for vendor designs of value‐added customer services. Most likely, the framing of buying problems by organizational buyers is layered and more complex than related taxonomies found in the marketing literature. © 2001 John Wiley & Sons, Inc.     

A Neurological Study of Compulsive Buying Behaviour

The following article describes a study of the neural correlates of compulsive buying. Twenty-six non-compulsive (“normal”) and 23 compulsive buyers were measured using functional magnetic resonance imaging while performing purchasing decisions. The compulsive buyers were selected based on strict criteria, such that they were all undergoing psychotherapeutic treatment due to their buying behaviour. The results show evidence of significant differences between non-compulsive and compulsive buyers regarding brain activity in regions known to be involved in decision making. The findings give a deeper insight into the nature of compulsive buying and are relevant to consumer policy.     

An Empirical Investigation of the Formation and Implications of the Organizational Buyer's Strategic and Tactical Roles

Although research in organizational buying behavior has alluded to the importance of the purchasing agent's enacted role in the development and execution of an organization's procurement related activities, there exists little corresponding empirical evidence. This paper examined the buyer's self-perceived role, factors that affect its formation, and the impact that a buyer's role definition has on various aspects of buying behavior. Cluster analysis is employed to differentiate among purchasing agents based on their perceived participation in various stages of the purchasing decision process. Different patterns of behavior emerge from the five empirically derived clusters. These differences are presented and the managerial implications are discussed.     

An extended interpersonal influence model of organizational buyer behavior

Traditional views of buyer-seller dyads in organizational buyer behavior (OBB) research often focus on the dyad as a unit. This article considers the purchasing member of the dyad in the dual role of information source and decision influencer embedded in the buying center. The sales representative then is seen to approach the buying center through this liaison, who in many respects performs selling functions within the purchasing organization. A model operationalizing this approach and specific implications for further research are presented.     

Interfirm strategic integration in retailer buying groups: antecedents and consequences on the retailer's economic satisfaction

Abstract

Independent small retailers have shown a growing trend toward joining buying groups as a means to compete against large distribution chains. The retailer's strategic integration of the relationship with the buying group (RSI), i.e., the retailer's recognition of this relationship as a strategic asset, is the focal theoretical construct of this study. With a sample of retailers of home appliances that are integrated in a buying group, the empirical test of two alternative models about the antecedents and consequences of RSI has confirmed that the concept plays an important and significant mediational role in explaining the effects of environment and relational characteristics on the retailer's satisfaction with the buying group. The author discusses the theoretical implications of the results obtained and explores consequences for decision makers.     

The use of event related potentials brain methods in the study of Conscious and unconscious consumer decision making processes

The question of whether consumer purchasing decisions are conscious choices or unconscious has long been studied in marketing. The ability to measure mental changes with high temporal resolution makes the EEG-based event-related potentials (ERP) method very useful in studying the distinction between consciousness and unconsciousness. Although experiences with brands significantly affect the awareness or unconsciousness of decisions to purchase, ERP studies have ignored experiences of consumers in relation to brand purchases. For this purpose, EEG recordings of participants were taken in the order they saw brand names: experienced brands, review-based brands, and unknown brands. Participants chose one of the three options for the brands they saw on the screen: buying, not buying, and no idea. 35 people participated in the study. The results indicate that early ERPs, which are unconscious mental reactions, related to purchase decisions for previously unknown brands. Late ERPs associated with conscious mental reactions are related to purchasing review-based brands or experienced brands. We conclude that purchasing decisions about unknown brands occur as a result of automatic, unconscious mental processes, whereas purchasing decisions about previously experienced brands and based on consumer reviews result from conscious mental processes. Our study is the first that demonstrates the relationship between ERP's and purchasing decisions, with an experimental design focused on consumer experience and consciousness.     

Henry Mintzberg: A profile

Henry Mintzberg is one of the leading scholars of organizational theory. In this review of his work, Charles Hampden Turner explains his concept of emergent strategy, which he contrasts to the grand designs characteristic of much strategic thinking. For Mintzberg, the adhocracy—a configuration which substitutes project groups and matrix structures for bureaucracy—is the only organizational structure genuinely responsive to changing industrial environments.     

Organizational buying behaviour for perishable-food packaging in grocery retail

This qualitative study investigates the structure of the buying centre, the buying process, and the factors that influence buying decisions for perishable-products packaging. This empirical investigation is based on the case study of a major Quebec food retailer. We show that the purchase of packaging changes significantly depending on whether the product is considered more or less strategic for the organization, which determines the required level of packaging customization. Buying centre structure becomes more complex as packaging customization increases. Given the multi-functionality and the interdisciplinarity of packaging, we propose a multi-criteria analysis grid to improve buying decision efficiency and to streamline communication between the various levels of the buying centre.     

Do promotion and prevention focus influence impulse buying: The role of mood regulation,shopping values,and impulse buying tendency

Earlier researchers have observed that an individual consumer's mood plays a significant role in increasing the impulsiveness, which leads to impulsive buying. The literature on shoppers' motivational traits has profoundly acknowledged the impact of these traits and mood regulation constructs on individual shopping values. The present study is a pioneer attempt proposing a comprehensive model, which incorporates three main antecedents (motivation, mood and value) of buying behaviour that influence the consumer purchasing decision. The paper empirically explores the liaison between the regulatory focus (promotion-focused and prevention-focused motivations), mood regulation (mood monitoring, mood clarity and mood repair), shopping values (hedonic and utilitarian), and impulsive buying behaviour. The outcomes suggest that two regulatory focus motives influence mood clarity. Mood repairing and mood monitoring impact hedonic shopping values, which has a substantial impact on consumers' impulsive buying tendency. The paper closes with theoretical and practical inferences, limitations, and discussion on the potential scope for future research.     

Strategic and Operational Determinants of Relationship Outcomes With New Venture Suppliers

While the vast majority of the supplier selection and development literature has focused on relationships between mature, established firms, significantly less attention has been paid to relationships between established firms and new, entrepreneurial ventures. This study addresses this important topic and, using an interdisciplinary lens, investigates the question of how established buying firms can work with new ventures to achieve desired relationship outcomes. Drawing on the literature from the disciplines of entrepreneurship and supply chain management, we propose a theoretical model that links buying firms' strategic orientation in supplier selection (innovation and cost in strategic supplier selection) and operational approach in supplier development (direct and indirect development of new venture suppliers) with new venture‐specific relationship outcomes (purchasing volume and realized innovations). The model's predictions are tested on cross‐sectional survey data from 136 buying firms. Our results contribute to the emerging research stream at the supply chain management–entrepreneurship interface and enhance the understanding of relationships between established firms and new ventures.     

Observation of a strategic household purchase decision

The present paper focuses on strategic household purchase decisions; i.e., major, complex buying decisions with long-term bindings of economic resources. An in-depth study of house buying in two-career households demonstrated preferences (goals) to be ambiguous, and consequences to be modestly understood and partly uncovered after the purchase. Only a few alternatives were considered, and they were from different broad need-satisfying categories such as purchase of apartment or house, or renting. No direct comparisons of alternatives were observed to take place. The purchase decisions were based on few, very crude decision criteria working as guidelines for judging whether or not the alternatives considered were acceptable, while the final choice seemingly was made according to an affect-referral decision rule.     

An empirically based operational definition of strategic purchasing

To develop an empirically based operational definition of strategic purchasing, a definition was first developed from the current literature. The definition was tested by first developing a model based on the current literature in the strategic management and strategic purchasing literature. The model resulted in four hypotheses. To test the hypotheses, survey responses from 739 firms were analyzed. Each of the following factors were positively related to the level of strategic purchasing as defined from the literature: status of the purchasing function; purchasing knowledge and skills; purchasing's willingness to take risks, and; purchasing resources. Therefore, it was concluded that the definition was valid and could include the four underlying characteristics.     

Buying while expecting to sell: The economic psychology of online resale

Consumer online resale is becoming increasingly common for transactions of secondhand goods. However, when accompanied by a preconceived intention to resell a product after using it, the initial consumer purchasing decision for self-use is complicated by the estimated resale value of that good. We applied the principles of mental accounting to develop and evaluate a new concept that may influence consumer resale and purchase intention: external resale reference price (ERRP). The study examines how online consumer sellers' economic psychology of buying affected their expectation of future online resale outcome. The results indicate that (1) consumers' awareness of future online resale potential can influence their purchasing decisions; (2) ERRP, which is mediated by the estimated resale return, can increase purchase intention; and (3) the effects of ERRP on purchase intention are moderated by online resale likelihood, but are minimal when consumers are aware that resale possibility is extremely low.     

Problems and Risks in the Purchasing of Consultancy Services

This article integrates some of the literature relevant to the purchasing of industrial professional services with a view to highlighting the risks and dificulties involved. Many factors con- tribute to increasing the risk involved in the decision, including: the characteristics of services; the high financial risk; the conflict of interest; the length of purchase commitment; organisational risks, the inexperience of decision makers; the conspicuousness of the decision and extent of linked decisions. The decision making process can involve eight stages; problem identification, determining if the problem is to be handled internally or ex- ternally, identifying possible consultants, searching for information about consultants, evaluating consultants, selecting consultants, managing the project and reviewing the consultant's performance. The paper takes the buying process as it main framework and integrates the risks and problems encountered as well as discussing practical ways to overcome them.     

Agile Manufacturing Strategy and Business Ethics

Emergence of purchasing as a strategic function has not only broadened the scope of purchasing, it has also changed the responsibilities of the purchasing managers by empowering them to spend large sums of money in procuring goods and services. However, this has also presented them with an array of ethical dilemmas involving questionable purchasing practices. This study proposes a framework to examine ethicality of decision making when faced with such dilemmas and presents the results of a survey conducted to assess the ethical inclinations of purchasers operating in Singapore. The results give credence to the notion that ethicality of behavior is culture-specific and reconfirms the existence of ethical relativism.     

Differences and Similarities between Impulse Buying and Variety Seeking: A Personality‐based Perspective

Although personality is a key determinant of consumer purchasing decision making, the role of personality traits in impulse buying and variety seeking is not conclusive. This research uses a personality perspective to determine the unique associations among impulse buying tendency (IBT), variety seeking tendency (VST), and the Big Five personality traits within one integrated framework. Based on data from a nationally representative sample of 1644 Norwegian adults, the results show that while IBT and VST might be correlated, they differ significantly with respect to two major personality aspects: “neuroticism” and “openness to experience.” Specifically, the present study indicates that neuroticism predicted IBT positively and VST negatively, while openness was a strong predictor of VST and unrelated to IBT.     

Outranking methods in support of supplier selection

Initial purchasing decisions such as make-or-buy decisions and supplier selection are decisions of strategic importance to companies. The nature of these decisions usually is complex and unstructured. Management Science techniques might be helpful tools for this kind of decision making problems. So far, however, the application of outranking methods in purchasing decisions has not been suggested in purchasing or operations research literature. In this paper we show by means of a supplier selection example, that an outranking approach may be very well suited as a decision-making tool for initial purchasing decisions.