Taxonomy of Buying Decision Approaches

Bunn, Michele D.

doi:10.2307/1252056

Cited by 188 publications

(166 citation statements)

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“…The companies represented in the study also varied in size: 67.9 % had 50 personnel or fewer; 19.4%, 51-500 personnel; and 12.7%, over 500 personnel. Bunn (1993) proposes a classification of six buying situation categories: casual, routine low priority, simple modified re-buy, complex modified re-buy, judgemental new task, and strategic new task. Mitchell (1998) finds that the classification of buying situations by newness, 13 importance, and complexity characteristics to be an accurate measure of the perceived risks found in the context of organizational buying.…”

Section: Data Collectionmentioning

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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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: Data Collectionmentioning

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, considerable differences between organizational buyers and consumers prevent an easy application of findings from this research stream to a B2B context. In particular, compared to consumers, organizational buyers are characterized as being exposed to different risks with a personal and an organizational dimension (Mitchell, 1995), as processing information more intensively (Johnston & Lewin, 1996) and as putting greater emphasis on establishing long-term supplier relationships (Webster & Keller, 2004), leading to more rational buying decisions (Bunn, 1993;Wilson, 2000).…”

Section: Introductionmentioning

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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“…A transaction can be split into a number of transaction phases. Indeed, when analysing purchasing processes, neither the marketing literature (Bunn 1993;Kotler & Keller 2015) nor the IS literature (Choudhury & Karahanna 2008;Pavlou & Fygenson 2006) considers a transaction to be a monolithic block, but rather a series of transaction phases. This "purchase funnel" captures the customer's decision-making process Theorizing E-Commerce Business Models towards the purchasing act, whereby the number of phases depends on the level of granularity (Wiesel et al 2011).…”

Section: The Concept Of Transaction Phasesmentioning

confidence: 99%

Theorizing E-Commerce Business Models: On the Impact of Partially and Fully Supported Transaction Phases on Customer Satisfaction and Loyalty

Madlberger

Matook

2017

AJIS

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Although considerable research has been conducted on the definition and classification of ecommerce business models, little research has integrated the support and impact of distinct transaction phases within e-commerce business models. Indeed, any channel design decisions depend on the arrangement of the three transaction phases, viz. information phase, agreement phase and fulfilment phase. Whereas in literature, a complete support of transaction phases is implicitly assumed, in practice, e-commerce firms exist that consciously do not support all three transaction phases through the online channel. In cases for which only certain phases are supported in one channel, the customer is required to switch to another channel to complete the transaction. To gain an initial understanding of the relevance of transaction phases, we examine the influence of transaction phase support in one channel on satisfaction and reuse intention of an e-commerce website under consideration of users' prior experiences. We conduct a laboratory experiment involving two e-commerce business models that differ only in the number of supported transaction phases via the online channel. Empirical data was analysed using a Bayesian network approach. Our analysis indicates the types of users who value partial support compared to those users who prefer full support of transaction phases. The results will assist firms in meeting future challenges regarding user engagement and attraction to their online stores.

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Taxonomy of Buying Decision Approaches

Cited by 188 publications

References 0 publications

The influence of purchase-related risk perceptions on relationship commitment

The influence of purchase-related risk perceptions on relationship commitment

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

Theorizing E-Commerce Business Models: On the Impact of Partially and Fully Supported Transaction Phases on Customer Satisfaction and Loyalty

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