Model Of Buying Behavior Research Articles

Incorporating Reference Price Effects into a Theory of Consumer Choice

Although there has been a good deal of research on incorporating the effects of reference price formation into empirical models of consumer buying behavior, little formal theoretical work had been undertaken to date. This paper incorporates reference price effects into the traditional economic theory of consumer choice, and examines the effects of reference price formation on the results of the traditional theory, its marketing implications, and the implications for empirical models which examine the effects of reference price formation on actual consumer behavior. Several implications of the theoretical model are empirically tested using weekly retail egg sales data from Southern California. This analysis indicates that reference price formation does have significant effects on consumer behavior. Furthermore, these effects are asymmetric with consumers two and a half times more responsive to egg price increases that are in excess of the reference price than they are to comparable egg price decreases.

Determining buying center size

This research utilized microcontigency analysis to study buying center size. The constructs of purchase situations and purchase phases were drawn from the early organizational buyer behavior models and were validated as being significantly related to buying center size. The results have implications for industrial marketing research and strategy.

The Influence of Uncertainty on Ratings of Information Importance by Retail Apparel Buyers

The study examined retail apparel buyers' use of information sources when uncertain about specific product characteristics. Sheth's (1973) industrial buyer behavior model was used as the conceptual framework Questionnaires were mailed to 442 retail apparel buyers located in the West South Central region of the United States. A total of 212 usable questionnaires were returned, yielding a 49.5 % response rate. Buyers rated the importance of six information sources (upper management, buying office, another buyer/peer, sales representative, trade publications, competition) when uncertain about five product characteristics (quality, anticipated margin, expected sales, consumer demand, aesthetics). Analysis of variance and Tukey's post hoc comparisons were used for data analysis. When uncertain about the product characteristics-anticipated margin, expected sales, and consumer demand-buyers rated upper management as significantly more important than the other sources. Another buyer /peer was significantly more important to buyers when uncertain about quality and aesthetics. Results support Sheth's (1973) proposition that buyers will conduct the information search process differently based on their expectations.

Incorporating choice dynamics in models of consumer behavior

This paper presents a framework for organizing and discussing factors influencing consumer choice dynamics, how these factors may be incorporated into models of buyer behavior and problems that may arise in estimating such models. The paper identifies research issues and delineates possible approaches.

Retail buyers' decision-making process: an investigation of contributing variables

A retail store's profitability is contingent, to some degree, on the performance of the retail buyer. The present research examines selected constructs from a model (Sheth 1981) that serve as heuristic devices used by retail buyers of fashion goods that may influence the decision-making process of the buyer. The decision reached affects the performance of the retail buyer which is judged by gross margin return on inventory investment. Based on the results from questionnaires distributed to department store buyers, the major influences on gross margin return on inventory investment are type of merchandise the buyer selected, type of buying decision, job experience and training received by the buyer. These findings are not only useful in the development of a retail buyer behavior model, but also in executive training programs.

A multi-stage model of choice incorporating reference prices

Most empirical choice models specify simple structures with marketing mix and household descriptors as independent variables and some measure of brand choice as the dependent variable. However, these models are not consistent with buyer behavior models that posit some type of multi-stage choice process with consumers moving through various stages such as perceptions and preferences. In this paper, a multi-stage model incorporating preference measures and reference prices is specified and estimated using consumer scanner panel data featuring household-level advertising exposure measures. Preference is estimated using scaling procedures recently shown to be effective with choice data. The results show empirical support for the model as preferences and reference prices impact household choice shares.

MEASURING THE EFFECT OF MARKETING INFORMATION ON BUYING INTENTIONS

The ABC measure was developed to replace the less flexible and less comprehensive traditional measure of marketing effectiveness—market share. The ABC measure is based upon concepts and theory that were used in developing a buyer behavior model that has been successfully applied to a range of products. This article demonstrates the design and application of the ABC measure by analyzing the experience of four financial institutions, each of which markets a managed cash account. Finally, using the results of the managed cash accounts study, it discusses the application of this measure in meeting the management needs.

Consumer buying behavior and optimal advertising strategy: The quadratic profit function case

Nicosia's consumer buyer behavior model for a finite advertising campaign duration and a quadratic profit function, which represents the advertising effectiveness measure, is considered. The optimal dynamic advertising strategy is the solution to a quadratic, two-boundary point, optimal control problem with two control constraints. The closed form solutions of optimal advertising paths are obtained and estimation of the parameters is treated. A numerical example illustrates the methodology and provides a comparison with a constant advertising path. The feasibility of applying constrained dynamic optimization to obtain the optimal advertising path in a more realistic environment is demonstrated.

Retail Buyers of Apparel and Appliances: A Comparison

The purpose of this study was to examine relationships among selected variables from a model of industrial buying behavior in the study of retail buying and to compare apparel and appliance buyers. One hundred-twenty apparel buyers and 126 appliance buyers responded to a mailed questionnaire. A factor analysis generated factors for Product Fashionability, Vendor, Negotiations, Supply, and Brand Name. Further analyses revealed that both groups of buyers relied on personal selling as an information source and were loyal to past vendors. Apparel purchases were characterized as "new task," appliance purchases as "routine." Apparel buyers emphasized quality, good delivery, styling, steady source of supply, and fair prices in making purchases; appliance buyers emphasized quality, steady source of supply, fair prices, good delivery, and brand. The results of this study seem to indicate that apparel buyers need awareness of and skill in purchase negotiations. Retail buyers need to read additional sources of information and should be encouraged to make greater use of trade publications. Educators who provide training and employers in the retail industry should recognize the differences in buying tasks depending on the line of merchandise. Finally, variables from a model of industrial buying behavior were found to be useful for further study of retail buying behavior.

A Reward/Measurement Model of Organizational Buying Behavior

A new model of the organizational buying process is presented. The ontological framework of the model is based on the assumption that organizational buying behavior is essentially a form of work behavior. The model is informed by expectancy theory and emphasizes the role of reward and measurement systems in motivating purchasing process participants. It is suggested that this approach can serve as the foundation of a research program that may eventually lead to a unified theory of the organizational dyad.

A Reward/Measurement Model of Organizational Buying Behavior

A Reward/Measurement Model of Organizational Buying Behavior

The purchase of components: Functional areas of influence

The Webster and Wind model of organizational buyer behavior enjoys considerable popularity. However, not all of its constructs and relationships among constructs have been validated by empirical research. The purpose of this study was to provide empirical evidence concerning the relationships between three of the model's critical constructs: buying center membership, purchase situation, and purchase phase. The relationships studied were variations in the perceived relative influence of different functional areas (e.g., production, marketing, purchasing, etc.) across three purchase situations and four purchase phases. The results of the study clearly indicate that the functional areas are generally perceived to have varying amounts of influence across both the purchase situation and purchase phase. These results have specific implications for developing effective industrial marketing strategies.

An Assesment of Industrial Shipper's Perceptions in the Modal Selection of Air Cargo Transportation

The process which industrial shippers use regarding freight modal choice is better understood when analyzed within the marketing models of organizational buyer behavior. These models take their origin from the behavioral aspects of consumer buyer behavior and attitude-attribute theory which allow researchers to meuure consumer perceptions, predict preferences and then infer choice. Perceptions about freight modal alternatives and the relative importance of cost, service, shipment characteristics, and distribution pattern attributes were ascertained via a self-administered mail survey conducted in 1982. Using comparisons between mean response scores and multidemensional scaling techniques, respondent perceptions were measured and analyzed. The air cargo mode vas isolated for specific study. The results indicate that air cargo is perceived as a unique transportation alternative providing a means for shippers to meet their customer's special requirements at a premium freight rate. Industrial class shippers, in general, seek low cost dependable transportation methods for the shipment of low value per unit weight bulk commodities, and do not value short transit time as relatively important. However, when the customer dictates and the shipment allows, the air cargo mode is the ideal method of transportation.

Product Liability Legislation, Consumer Behaviour and Marketing Strategy

Analyses the possible effects of product liability legislation on marketing activity. Studies the effects on consumer behaviour of such legislation by means of a buying behaviour model. Uses these effects to further analyses the same effects on various components of the manufacturers' marketing mix and strategy. Concludes that, generally, although the declared purpose of product liability legislation is to protect consumers from specific purchasing hazards, it actually rather causes harm and infringes their economic welfare. Reveals, also, that, on the producer's side, market structure will be more unstable.

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.

Nonlinear Relations in a Complex Model of Buyer Behavior

Econometric techniques are used to test in a nonlinear fashion a model built around the learning subsystem of the Howard-Sheth theory of buyer behavior. Findings of nonlinearities (including interactions) are shown to improve the R 2, s , to be generally consistent with the theory, and to provide researchers with hypotheses to be tested in other purchase situations.

An evaluation of the BUYGRID Analytic Framework

The purpose of this study was to perform a statistical evaluation of the BUYGRID Analytic Framework (BAF) to determine whether it is a general model of industrial buying behavior. The BAF is often used as a basic reference for other research studies, even though it has never been validated. This article also provides a new approach to understanding industrial buying behavior by identifying the influence of the informal system on the formal decision process and defines a decision-process model for the informal system.

Identifying the Deal Prone Segment

A model of consumer buying behavior is used to identify household characteristics that should affect deal proneness. The model treats household purchasing and inventory decisions like those of a firm. In other words, the household's purchasing decisions are assumed to be based on such factors as transaction costs, holding costs, and stockout costs in addition to product price. Household characteristics then are related to these cost parameters to identify households that are likely to be deal prone. The predictions are tested empirically by use of panel data for five frequently purchased products. The empirical results indicate that deal prone households can be identified and that the key variables affecting deal proneness are household resource variables such as home ownership and automobile ownership.

The Industrial Buyer and the Postchoice Evaluation Process

Models of industrial buyer behavior generally assume that postchoice evaluation of purchased materials serves as an input to the decisionmaker's attitude set, and hence has some effect on subsequent decisonmaking. Is there such an effect? This article presents the findings of an exploratory experiment, with purchasing agents and engineers as subjects, which examined the nature and impact of postchoice evaluation by others in the organization on the decisionmaker's attitude set. The findings suggest that the impact of evaluation after choice may be more complex than previously supposed.

Important vendor factors in industrial and hospital organizations: A comparison

INTRODUCTION It is often pointed out that purchasing processes and their dynamics have similar generic characterDuring the last few years organizational buying istics in diverse organizational settings of both cornbehavior has emerged as a major field of study, mercial and non-commercial sectors of the market Marketing academicians have formulated compreplace. Efficient organizational marketing depends hensive organizational buying behavior models on a clear understanding of organizational buying [1, 2] with the objectives of consolidating knowbehavior under diverse organizational settings. ledge, improving marketing practice and promoting Although the organizational buying process is research in new directions. In some of these writconceived as generic in nature, most research atings, the generic nature of organizational buying tention in this field is often devoted to organizabehavior and its implications for practice and retional buying in commercial sectors and more partisearch has been well recognized, cularly the industrial sector. Limited research atDespite the fact that most of the research on tention was devoted in the past to the various asindustrial buying behavior has been confined to pects of organizational buying in the non-commerthe purchase of tangible products in the commercial sector with perhaps the possible exception of cial sector, the fact remains that all formal organigovernment buying. One seldom finds research zations, such as business firms, governmental agendealing with comparisons of organizational buying cies, hospitals, educational institutions, and reliprocesses between commercial and non-commercial gious and political organizations must purchase sectors of the market place. Such comparative studgoods and services to be used in the conduct of ies would be significant from several points of view. their affairs [3]. First, during the post war years, the U.S. economy