Measuring perceived pre-purchase risk for a new industrial product

Risk is an important element in industrial adoption decisions. This paper proposes a method to investigate how different group of individuals influencing the adoption of a new industrial product differ in their assessment of the risks. Two dimensions of risk are distinguished: (1) the likelihood that adoption of the new product will have undesirable consequences, and (2) the perceived intensity of these consequences both at the organizational and at the individual level. Purchase consequences are measured in terms of product economics and product reliability. Multivariate analysis of variance is used to assess how decision participants differ in their assessment of risk components. An attempt is made to assess the relative importance of these various components in the formation of individual preferences. The implications of the analysis for the development of better industrial marketing strategies are discussed.     

Reviews

YUGOSLAVIA IN TURMOIL.

Simmie, J. and Dekleva, J. 1991: Yugoslavia in Turmoil: after self-management?, London: Pinter Publishers, £35.00 cloth.

THE DEFENCE OF WELFARE.

Whitfield, D. 1992: The Welfare State. London: Pluto, £45.00 cloth, £19.95 paper.

GLOBAL FINANCE.

Budd, L. and Whimster, S. (eds) 1992: Global Finance and Urban Living, London: Routledge, £40.00 hardback, £13.99 paperback.

LABOUR MARKET RESEARCH.

Moore, B. and Townroe, P. 1990: Urban Labour markets - Reviews of Urban Research, Department of the Environment: HMSO, £11.25.     

The dynamics of long-term business-to-business exchange relationships

A framework for business-to-business interaction is proposed that integrates approaches to bargaining from social psychology and economics to provide a conceptual paradigm emphasizing long-term exchange relationships rather than individual transactions. The authors propose a classification of negotiation behavior along two continuous dimensions and examine the mechanics of the dyadic negotiation process that translate negotiation behavior into long-term relationships. They suggest that exchange relationships are formed by achieving mutually beneficial outcomes from a series of exchange transactions and that there is a bi-directional link between negotiation behavior and exchange relationships mediated by negotiation outcomes. The framework also explores the determinants of negotiation behavior in dyadic negotiations between businesses in terms of organizational, individual, and “other party” influences. Propositions are developed, using both role theory and economic bargaining theory, to support the overall framework. Finally, the classification of negotiation behavior is revisited to examine the evolution of exchange relationships over time. She received her Ph.D. from Georgia State University. Her research interests include attitude and choice models, services marketing, customer satisfaction, and business-to-business relationships. She has published articles in theJournal of Consumer Research, Journal of Business Research, Psychology and Marketing, Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior, and theJournal of Health Care Management, as well as various conference proceedings. He received his Ph.D. from the University of Pittsburgh. His research interests include organizational buying behavior, negotiation strategies, small group dynamics, and cross-cultural differences in buyer-seller interactions. His research has been published in theJournal of Marketing, Journal of Consumer Research, Journal of International Business Studies, andIndustrial Marketing Management, as well as numerous conference proceedings. She also holds an M.B.A. from the Uni- versity of Tennessee. Her research interests include consumer value determination, consumer satisfaction, and business-to-business relationships.