Key Aspects of Organizational Buying: Conceptualization and Measurement

Bunn, Michele D.

doi:10.1177/0092070394222005

Cited by 38 publications

(52 citation statements)

References 48 publications

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“…However, this latter risk dimension is not considered relevant to the present study, as buying process outcomes do not cause direct physical risks to buying centre personnel. Bunn (1994) and Woodside and Sherrell (1980) have found that procedural control underlies all organizational buying behaviour, a finding justified on account of organizational buying being mostly conducted according to predefined procedures. Munnukka and Järvi (2008) show that business organizations apply procedural control mechanisms more intensively in higher risk buying situations.…”

Section: Perceived Risks In Organizational Purchasingmentioning

confidence: 99%

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The influence of purchase-related risk perceptions on relationship commitment

Munnukka

Järvi

2015

International Journal of Retail &Amp; Distribution Management

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Structured Abstract:Purpose Perceived risk is an intrinsic element of all organizational decision-making and business relationships. It is closely interconnected with relationship commitment and strongly affects the buying decisions. Therefore, the organizations that best understand the risks perceived by their customers and hold the means that allow the customers to accommodate these risks, possess a significant competitive edge. Design Type footer information here Type header information hereThis research surveys 165 companies on purchase-related risk perceptions and tests the effects of three risk dimensions on relations commitment, and the effectiveness of procedural control on managing these risks. Moderation effect of buying situation is also tested. Structural equation modelling is used to test the conceptual model on data from Finnish companies. FindingsThe participants in organizational buying experience three types of risks, product performance, personal psychological, and personal financial risks. Higher product performance and personal financial risks are found to decrease the customer's commitment to the supplier, whilst higher psychological risks have a positive effect on relationship commitment. Procedural control is confirmed as an effective application in managing risks in organizational buying process. Buying situation significantly affects the model. OriginalityThe present study shows that purchase-related risk perception is a multidimensional construct which consist of both organizational and individual level aspects. We also provide new insights into the effectiveness of procedural control on mitigating organizational risk perceptions in different buying situations.Keywords: organizational buying, relationship commitment, perceived risk, procedural control Article Classification: Research paper For internal production use only Running Heads:The influence of purchase-related risk perceptions on relationship commitment PurposePerceived risk is an intrinsic element of all organizational decision-making and business relationships. It is closely interconnected with relationship commitment and strongly affects the buying decisions. Therefore, the organizations that best understand the risks perceived by their customers and hold the means that allow the customers to accommodate these risks, possess a significant competitive edge. DesignThis research surveys 165 companies on purchase-related risk perceptions and tests the effects of three risk dimensions on relations commitment, and the effectiveness of procedural control on managing these risks. Moderation effect of buying situation is also tested. Structural equation modelling is used to test the conceptual model on data from companies that had recently been in significant new buy or modified re-buy situations. FindingsThe participants in organizational buying experience three types of risks, product performance, personal psychological, and personal financial risks. Higher product performance and personal financial risks are found to decrease the ...

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Section: Perceived Risks In Organizational Purchasingmentioning

confidence: 99%

“…In this study, procedural control is defined according to Bunn (1994) who states that it is the extent to which a buying organization relies on policies, procedures, or informal rules of thumb in buying decision-making.…”

Section: Procedural Control Mechanisms In Organizational Purchasingmentioning

confidence: 99%

The influence of purchase-related risk perceptions on relationship commitment

Munnukka

Järvi

2015

International Journal of Retail &Amp; Distribution Management

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“…However, under low time pressure, buyers more extensively search for information and use quantitative and structured techniques to analyze the purchase (Bunn, 1994;Gronhaug, 1975). Findings from social psychology also show that groups more carefully attend to the available information when time pressure is low (Karau & Kelly, 1992).…”

Section: Time Pressurementioning

confidence: 99%

Brand awareness in business markets: When is it related to firm performance?

Homburg

Klarmann

Schmitt

2010

International Journal of Research in Marketing

277

187

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In Business-to-Business (B2B) environments, many firms focus their branding activities on the dissemination of their brand name and logo without developing a more comprehensive brand identity. Thus, the creation of brand awareness is an important goal in many B2B branding strategies. However, it is still unclear if the great investment necessary to build a high level of brand awareness really pays off in business markets. Therefore, drawing on information economics theory, this paper investigates under which conditions brand awareness is associated with market performance in a B2B context. Results from a cross-industry study of more than 300 B2B firms show that brand awareness significantly drives market performance. This link is moderated by market characteristics (product homogeneity and technological turbulence) and typical characteristics of organizational buyers (buying center heterogeneity and time pressure in the buying process).

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“…Building on this foundation, literature on industrial buying behavior in the 1990's increasingly turned its attention to the decisionmaking process of buying centers (e.g. Brown, 1995;Bunn, 1994;Schmittlein & Peterson, 1994). Even though numerous decision models were developed at an early stage, these could not realistically be used to predict individual buying center decision in practice as the models were either too abstract or were accompanied by an unsolvable data collection problem.…”

Section: The Data Collection Problemmentioning

confidence: 99%