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An Inductive Model of Industrial Supplier Choice Processes
Abstract
Decision systems analysis, participant observation, and document analysis were used to collect data on the activities, decisions, and interactions of persons involved in 18 plant purchasing agreements (PPAs) in six industrial firms. PPAs are statements of intention to buy (and sell) a quantity of a specified production or nonproduction material within a given time period, usually a year or more. A descriptive, composite model of activities, decisions, and interactions is presented. Differences and similarities across the 18 PPAs investigated in the study are reviewed. Implications for theory development and for marketing management are offered.
... Second, we advance the field's understanding of RFPs, which are the primary sales tools and chief signaling devices in selling to barricaded buyers. Although prior research has documented the importance of RFPs in the buying process (Johnson, Friend, and Malshe 2016;Leigh and Rethans 1984) and examined how buyers use RFPs for both evaluation (Crow, Olshavsky, and Summers 1980;Vyas and Woodside 1984) and learning tools (Nutt 1993), the literature remains limited in a couple of ways. For instance, research on how suppliers can shape buyer RFPs ex ante remains largely unaddressed. ...
... Furthermore, the implicit view in prior research is that RFPs are evaluated in an objective fashion ex post (e.g., lowest price, fastest delivery; Vyas and Woodside 1984). Our research suggests that subjective factors (e.g., positive tone, explicit responding) are also important signals in determining suppliers' competitiveness. ...
... Second, we contribute to scarce research on RFPs (e.g., Johnson, Friend, and Malshe 2016). Although extant research has tended to focus on objective factors, such as price and delivery terms that affect proposal selection (Crow, Olshavsky, and Summers 1980;Vyas and Woodside 1984), our research emphasizes the importance of more subjective content (e.g., novel and supplemental solutions) and delivery (e.g., reference matching, positively toned, explicit and tailored responding) signals. Making positive impressions through these signals is particularly important in barricaded buyer settings because (1) competitors are less capable of responding to novel and supplemental solutions (if provided in the post-RFP phase), and (2) buyers rely more heavily on their subjective perceptions of suppliers based on their RFP responses. ...
In business-to-government and business-to-business transactions, suppliers often have limited access to buyers during the buying process. The authors term these buyers "barricaded buyers." Despite the prevalence of barricaded buyers in practice, research has remained largely silent on the topic. Therefore, the authors combine insights from eight organizational purchasing case studies and individual interviews with signaling theory to advance a conceptual framework that highlights ways a supplier can increase its competitiveness (and, correspondingly, its selection likelihood) when selling to barricaded buyers. The framework reflects three distinct ways in which signaling occurs or influences the barricaded buying process: the seller signals to buyers (e.g., through novel solutions, explicit responding), the seller signals to competing sellers (e.g., through peacocking), and the buyer signals to sellers whose meaning is jammed (e.g., through supplier-specific capabilities and language). The framework invokes barricade restric-tiveness as an important contingency variable that lends nuance to when the signaling activities are most likely to affect suppliers' competitiveness.
... Karar kuralları, çevresel, örgütsel, işletmenin satın alma sorumlusu ve tedarikçinin satış sorumlusunun bireysel özelliklerinden etkilenir; örgütsel satın alma sürecinin aşamaları arasında değişime uğrama eğilimi bulunur. Karar kuralları, bazı işletmelerde tedarikçi seçimi için formüller içerebilen resmi kurallar ve prosedürler olabilirken, bazı işletmelerde alıcıların deneyimlerine ve temel kurallara dayanan gayri resmi kurallar olabilir (Johnston ve Lewin, 1996;Vyas ve Woodside, 1984). Karar kuralları, organizasyonun özellikleri ve satıcı özelliklerinden etkilenirken; satın almanın özellikleri ile karşılıklı etkileşim içindedir. ...
... Bununla birlikte tedarikçi seçiminde kullanılan kriterlerin öncelik sırasının kalite, teslimat, fiyat ve esneklik olduğu üzerinde bir uzlaşı bulunmaktadır (Verma ve Pulman, 1998;Vonderembse ve Tracey, 1999). Ampirik çalışmaların bir kısmında ana seçim kriteri olan fiyattan fiyat dışı faktörlere doğru değişim olduğunu belirlenmiş (Petroni ve Braglia, 2000), çalışmaların diğer kısmında ise fiyatın seçimi sonuçlandırmada en büyük belirleyici olduğu bulgusuna varılmıştır (Famiyeh ve Kwarteng, 2018;Vyas ve Woodside, 1984). Dickson (1966) tarafından tanımlanan kriterlerin çoğu günümüzde tedarikçi seçiminde kullanılmakta olsa da temel kriterler olarak kalite, teslimat, maliyet, sistemler, süreçler, esneklik ve servis kabul görmektedir (Thanaraksakul ve Phruksaphanrat, 2009). ...
"Examining The Effect of Production Flexibility on The Industrial Buying Process and Suggesting A Supplementary Model"
The purpose of the research is to determine whether there is a relationship between production flexibility, supplier selection, performance, long-term collaboration, and trust. Additionally, the study aims to investigate which aspect among product mix flexibility, volume flexibility, change flexibility, and expansion flexibility has a greater impact on the supplier selection process. The main objective of the research is to explore the influence of 'Production Flexibility' on the functioning of the 'Industrial Purchasing Process' and to contribute to the model of 'Industrial Buyer Behavior' developed by Sheth (1973) by incorporating 'Production Flexibility' into the model.
... Decision rules include precedence and prior positive experience for repurchases and modified purchases, and balancing the risk of having too few suppliers or too many and a greater workload. While early buying models tried to account for the steps in a linear fashion, no consensus was achieved due to the decisional complexity (Vyas & Woodside, 1984). Buying behavior is not only affected by the purchase complexity, but by the firm's organization and general operation (Lewin & Donthu, 2005), buy-class (Zablah, Brown, & Donthu, 2010), and new digital tools that can modify buyer-seller communication (Gustafson et al., 2021;Osmonbekov & Johnston, 2018). ...
The buying center (BC) has captivated the attention of researchers for >50 years, becoming a central element of organizational buying behavior. While it seems easy to identify the BC participants in any given situation, the marketing literature lacks an integrative framework for examining the nature of BC. The purpose of this study is threefold: (1) to develop a rigorous BC conceptual model; (2) to provide an assessment of the BC state-of-the-art; and (3) to identify key opportunities for future research. Based on a systematic literature review, the descriptive findings indicate a decreasing number of publications since the late 2000s and that top-tier marketing journals have been almost silent since the early 90s. The domain-based findings suggest a three-layer model driving a thorough understanding of the concept, the main stages associated with BC deployment (formation, dynamics, and outcomes), and the contextual factors influencing BC decision-making.
... Központi kérdésként kezeli a döntéshozatali folyamat egészét, vagy egyes elemeit. Újabb modelleket is kidol goztak, például az új termékek bevezetésének problé májával kapcsolatban (Choffray-Lilien 1978), vagy a beszállítók kiválasztását illetően (Vyras-Woodside 1984). ...
Rövid történeti áttekintést követően a cikk az üzleti kapcsolatok marketingjének vezetői alapkérdéseit tárgyalja, majd megkísérli összefoglalni a kapcsolati megközelítés jelentőségét.
... Aside from motivating interest in the JIT exchange initially, high uncertainty is expected to contribute to a desire to establish JIT exchanges, at least when mar- ket or relational exchanges are currently in use. Firms normally attempt to achieve greater stability-certainty when faced with an uncertain future (Vyas and Woodside 1984;Webster and Wind 1972). One way for a firm to ensure greater stability in a threatening-un- certain environment is to achieve higher levels of in- terfirm coordination (Pfeffer and Salancik 1978), as empirical results reported by Etgar (1977) suggest. ...
A new form of relational exchange, commonly referred to as the “just-in-time” (JIT) exchange relationship, has been adopted and implemented by many original equipment manufacturers (OEMs) and suppliers of component parts-materials during the past several years. Though the “exchange relationship” is at the core of the marketing discipline, JIT exchanges have received little attention in the marketing literature. The authors attempt to expand understanding of (1) how JIT exchanges compare with other forms of exchange between suppliers of component parts-materials and OEMs, (2) what conditions are most conducive to the initiation of JIT exchanges, and (3) what key factors are likely to influence the success or failure of initiated JIT exchanges.
Five isolates of Macrophomina phaseolina (Tassi) Goid. namely, AUMP-1, AUMP-2, AUMP-3, AUMP-4 and AUMP-5 were isolated and identified morphologically. Variability among these isolates of M. phaseolina was determined using growth parameters and sclerotial body formation criteria. Based on the virulence study on the susceptible host (VRI-1) it was identified that AUMP-1 was the most virulent with (53.60% of disease severity) and AUMP- 2 was the least. Optimum growth of the M. phaseolina was observed at 30 ºC temperature and observed maximum mycelial
growth (90.00 mm) under in vitro conditions. Cultural and morphological studies revealed that the mycelium of M. phaseolina initially appeared as dirty white then turned to fluffy white to black with minute dark black sclerotia on the PDA medium. The hyphal branches were at dense and feathery angles with constriction of hyphal branches at their point of origin with the closed septum. The microsclerotia were dark black in colour and varied in size from 70.27 to 99.00 µm. The highest radial growth and excellent sclerotial formation were obtained on PDA media (90.00 mm) and proved best for growth followed by Richard’s Agar media (83.63 mm) for growth of M. phaseolina.
Stem and root rot disease caused by Macrophomina phaseolina is the serious soil-borne disease in sesame. The present study was conducted at College of Agriculture, Jodhpur during kharif season 2020-21 to evaluate the nine different fungicides under in vitro condition and five different fungicides under in vivo against M. phaseolina. Result of in vitro study indicated that the fungicide, carbendazim (50% WP) gave complete mycelial growth inhibition (100%) at 500 and 1000 ppm concentrations, respectively. Second best of pyraclostrobin 5% + metiram 55% WG,
carbendazim 12% + mancozeb 63%, then propiconazole 25% EC, thiophanate methyl (70% WP) and cymoxanil 8%+ mancozeb 64% also gave 100% inhibition of mycelial growth at 1000 ppm respectively. The lowest disease per cent was recorded in combination fungicide of tebuconazole 50% + trifloxystrobin 25% WG (8.91%) followed by 9.14% with cymoxanil 8% + mancozeb 64%, pyraclostrobin 5% + metiram 55% WG (11.02%) whereas, maximum disease incidence was recorded in control plot (55.32%) when tested under in vivo condition.
Bu araştırmanın amacı, Bunn (1994) tarafından geliştirilen örgütsel satın alma davranışı ölçeğinin Türkçe'ye uyarlanarak geçerliğinin ve güvenirliğinin ortaya konmasıdır. Ölçeğin Türkçe'ye çevrilmesinde ileri çeviri tekniği kulla-nılmıştır. Araştırmanın örneklemini imalat sektöründe faaliyet gösteren firma yöneticileri oluşturmaktadır. 358 firma yöneticisinden elde edilen ve-riler keşfedici faktör analizi ve doğrulayıcı faktör analizine tabi tutulmuştur. Analizler neticesinde ölçeğin dört faktörlü (yöntem kontrolü, geleceğe odak-lanma, bilgi araştırma, analiz tekniklerini kullanma) yapısının model uyum değerlerinin iyi düzeyde olduğu ve bu yapının doğrulandığı tespit edilmiştir. Ölçeğin iç tutarlılık katsayısı Cronbach alfa 0,89 olarak bulunmuştur. Bu bul-gular ışığında, uyarlanan örgütsel satın alma davranışı ölçeğinin geçerli ve güvenilir bir ölçüm aracı olduğu ortaya konmuştur. Abstract The purpose of this study is to demonstrate the validity and reliability of Bunn's (1994) organizational buying behavior scale by adapting it to Turkish. Advanced translation technique was used in the translation of the scale into Turkish. The sample of the study consists of firm managers from manufacturing sector. Data obtained from 358 firm managers were subjected to exploratory and confirmatory factor analysis. Results revealed that the model fit indices were satisfactory and four factor (procedural control, proac-tive focus, search for information, use of analysis techniques) construct was confirmed. The internal consistency coefficient Cronbach Alpha was calculated as 0,89. In that sense, it can be stated that the adapted organizational buying behavior scale is a valid and reliable measurement tool.
The sales profession is fraught with customer rejection and defections. Understanding why customers say “no” to a sales proposal is complex given that factors at the organizational-, individual-, and interactional-level are synthesized in the customer’s decision-making process. Academics and practitioners alike therefore stand to benefit from greater understanding of this phenomenon. The current study leverages text-based machine learning on postmortem interview transcripts from 113 business-to-business sales failures, spanning over 1,500 pages of text, to provide exploratory insights into the reasons for sales proposal rejections. Results reveal several thematic facets of sales proposal failures from the perspective of the customer, along with insights that variance in topic salience—i.e., buyer focus on a few topics or a spread of dimensions—is contingent on supplier incumbency status. Specifically, using topic modeling, findings show that buyers converge on a distributed (concentrated) range of sales proposal rejection topics for in- (out-) supplier proposals. Additionally, the authors show how the text-based machine learning approach can highlight key areas of concern for firms, enabling them to effectively enact changes that will improve future outcomes. Collectively, this research contributes to efforts to bridge the chasm between theoretical, managerial, and technical aspects of machine learning in sales.
This article reports a first step toward developing some quantifiable dimensions of the industrial buying task group, called the buying center. Group composition and interaction processes were examined for purchases of capital equipment and industrial services in 31 firms. Data were analyzed to test the soundness of a communications network perspective on the buying center and the managerial implications of such a perspective. Equipment and service purchase measures differed reliably across several indices suggested by our theoretical orientation. Organizational structure and purchase situation attributes correlated in generally expected directions with the dimensions of the buying group.
This research presents both a conceptual and a methodological framework for examining organizational buying behavior from a multiperson level of analysis. Focusing on those organizational members who participate in the procurement decision making process, this research investigates the buying group's adaptive structural configuration in response to varying levels of environmental uncertainty.
Protocol analysis was used to develop detailed simulation models of the decision processes individual industrial buyers use in requesting quotations and selecting a final supplier. The results suggest that industrial buyers frequently employ multistage decision models involving conjunctive processes.
This article reports a first step toward developing some quantifiable dimensions of the industrial buying task group, called the buying center. Group composition and interaction processes were examined for purchases of capital equipment and industrial services in 31 firms. Data were analyzed to test the soundness of a communications network perspective on the buying center and the managerial implications of such a perspective. Equipment and service purchase measures differed reliably across several indices suggested by our theoretical orientation. Organizational structure and purchase situation attributes correlated in generally expected directions with the dimensions of the buying group.