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

What is it about?

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.

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