Digital, Decentralized Supply Chain and Its Implication for B2B Marketing

This chapter discusses the possible effects of decentralized, digital supply chains on B2B marketing. Traditional buying and selling functions will change once large organizations decide to procure from digital platforms. Using the case study of medikabazaar.com, an Indian start-up, the chapter shows that while medical supply purchase will become decentralized, digital platforms will create a new centralization of suppliers and have a significant impact on industrial buying particularly for high value medical equipment purchase in small towns or small hospitals. Organizational buying process will be impacted and companies that choose to supply products directly to hospitals will have to change their marketing strategy suitably.

Digital Loyalty Programmes

Digital loyalty programmes are an increasingly common tool for business-to-business marketers hoping to increase repeat sales through deeper customer engagement. In consumer markets, such programmes do little to influence behavioural loyalty and disproportionately attract the firm's existing heavy buyers. Industrial buying, however, relies on direct sales channels and features negotiation and reciprocity. Loyalty effects may therefore differ in B2B, and although no clear picture yet exists, such knowledge is important as B2C digital loyalty programmes grow in popularity. Here, the authors describe programme membership's evolving characteristics over in a B2B scheme that was launched in the US metal-cutting tools manufacturer customer base. Findings are consistent with the idea that the scheme recruited the heaviest buyers earliest and had an insignificant effect on total revenue. The authors discuss managerial implications, particularly about (1) managing the rollout of similar schemes and (2) refocussing on the programme objectives to maintain sales from the lightest rather than the heaviest buyers.

Industrial-buying research 1965-2015: review and analysis

PurposeThe purpose of this paper is to investigate the underlying knowledge structure and evolution of industrial-buying research published between 1965 and 2015.Design/methodology/approachBibliometric analysis is performed on 357 relevant papers (using principal component analysis and natural language processing, using VantagePoint® tools, used to generate bubble maps, auto-correlation maps and Aduna cluster maps), demonstrating how various factors involved in industrial buying have evolved, their degree of correlation with each other and the interrelationships of multiple factors concerning their co-occurrences.FindingsThe systematic mapping of industrial-buying research would illustrate the development of the significant factors in industrial-buying research. This paper provides both a global perspective on the leading countries and journals in the field and a robust roadmap for further investigation in this field.Research limitations/implicationsThis paper is limited to the data considered for analysis and may, therefore, overlook or underestimate some work that has not been captured while filtering databases related to industrial buying.Practical implicationsThis paper facilitates near-future projection and trend analysis in industrial-buying research.Originality/valueThe methodology used is unique to the field of business-to-business marketing.

The effect of COO on retail buyers’ propensity to trial new products

Purpose The purpose of this paper is to theorize country-of-origin (COO) to be important to retail buyers in making purchase decisions. However, this question has not been addressed in the literature and leaves a critical gap in determining how COO ultimately affects consumer purchase options. Design/methodology/approach Retail buyer behavior is empirically tested with both premium and value brands from Italy. A sample retail buyers was taken from a LexisNexis database and provided 205 completed surveys. Construct scales were taken from existing literature and tested using composite reliability. SEM was used to analyze the data. Findings Results showed that retail buyers are affected by COO; that low involvement purchases are not differentially affected compared to high involvement; product typicality enhances likelihood of purchase and this typicality is more important for high involvement goods. Practical implications Retail buyers are affected by COO and will make product choices for their stores accordingly. Companies should be aware of this and take it into consideration to strengthen their acceptance by retail buyers. Trade organizations within countries may consider advertising approaches to distinguish themselves and stimulate positive COO among retail buyers. Originality/value This is the first time that retail buyer behavior has been studied with regard to COO effects using consumer models. Results showed that use of these models is more appropriate than only using industrial buying models. Retail buyers are found to indeed be affected by COO, which in turn influence buying choices for consumers and offerings from retailers.

Industrial buyer-seller interactions: negotiating in the Arabian Gulf

Purpose – The purpose of this study is to explore the key cultural factors that shape the Arab style of buyer-seller negotiations in the industrial goods sector; formulate propositions predicting behaviors of empowered buyers, avoidant buyers and deciders in an expensive industrial purchase situation; and develop a model of communication structure in an industrial buyer firm in the Arabian Gulf. In addition, the study advances propositions concerned with the bargaining style of Arab industrial buyers and the relationships between industrial sales effectiveness and negotiation tactics. Design/methodology/approach – The study draws on literature in the domains of industrial buying behavior, influence tactics in industrial buyer-seller negotiations and communication in industrial buyer-seller bargaining interactions. Findings – The more expensive an industrial purchase is the more empowered buyers will tend to anticipate the wishes of and seek the endorsement of powerful stakeholders, the more avoidant buyers will tend not to take responsibility for the purchase and the more decision makers will tend to rely on unwritten and formal rules and consult with influencers, subordinates and peers. Aggressive bargaining is unlikely to be used by Arab industrial buyers, who prefer a problem-solving approach. Sales effectiveness will be higher when industrial vendors incorporate tactics of ingratiation and inspirational appeal to influence Arab industrial buyers. Originality/value – The study offers a systematic examination of industrial purchasing characteristics through the lens of Arab culture. It synthesizes several literature streams, develops eight original research propositions and proposes a new conceptual model of the communication structure in an industrial buyer firm in the Arabian Gulf.