Organizational buying decision approaches in manufacturing industry: developing measures and typology

Abstract

Purpose

This paper aims to explore buying decision factors and approaches of companies operating in manufacturing industry in Croatia.

Design/methodology/approach

The data collected by company survey were analysed using exploratory and confirmatory factor analyses, cluster analysis and cross-tabulation analysis.

Findings

Results show that manufacturers are influenced by six distinctive factors when making purchasing decisions. These are supplier’s flexibility, supplier’s reliability, interdepartmental communication, top management support, routine purchases and buyer’s price sensitivity. Manufacturers can be classified in four different groups according to their buying decision-making patterns.

Practical implications

This paper provides a set of factors and approaches which might help selling companies and sales representatives understand the purchasing practices of buying company better, and develop adaptive selling approaches accordingly.

Originality/value

Based on a literature review and field research, an instrument of organizational buying behaviour was developed and tested in the Croatian manufacturing industry. The factors of organizational buying behaviour patterns were identified, and the typology of buying decision approaches applicable for manufacturing industry was developed.

Citation

Sinčić Ćorić, D., Anić, I.-D., Piri Rajh, S., Rajh, E. and Kurnoga, N. (2017), "Organizational buying decision approaches in manufacturing industry: developing measures and typology", Journal of Business & Industrial Marketing, Vol. 32 No. 2, pp. 227-237. https://doi.org/10.1108/JBIM-10-2014-0214