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Journal of the Academy of Marketing Science
Published in: Journal of the Academy of Marketing Science 2/2023

07-05-2022 | Original Empirical Research

The opportunities and costs of highly involved organizational buyers

Authors: Colleen E. McClure, Justin M. Lawrence, Todd J. Arnold, Lisa K. Scheer

Published in: Journal of the Academy of Marketing Science | Issue 2/2023

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Abstract

This research investigates the impact of an organizational buyer’s product involvement on the customer firm’s and supplier’s financial outcomes. The results suggest that highly involved organizational buyers are willing to pay more, which benefits the supplier, but they are also perceived by the supplier as having greater expertise in negotiations, which benefits the customer. In Study 1, the authors examine the effects of buyer product involvement using a survey of organizational buyers matched with profit data from their supplier. The findings suggest that the prevailing mechanism that drives the effects of buyer product involvement is contingent upon different customer and supplier levers. Study 2 examines the theorized mechanisms via a second survey and an experiment. This research contributes to literatures on buying and negotiations by revealing the importance of considering the potential effects of a buyer’s product involvement. Suppliers can leverage a more highly involved buyer by developing strong connections with the focal product; customers should encourage their buyers to be highly involved and leverage their knowledge of the market but limit their influence within the customer firm.
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Appendix
Available only for authorised users
Footnotes
1
We use “customer firm” and “customer” interchangeably.
 
2
Although we focus on physical products, involvement also manifests with regard to services and non-tangible products (Siebert et al., 2020) in both B2C and B2B contexts.
 
3
In some contexts, salespeople have the discretion to unilaterally grant discounts within some predefined range (e.g., Joseph, 2001). However, even in those contexts, salespeople often must seek approval for a discount beyond the preapproved range of discretion.
 
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Metadata
Title
The opportunities and costs of highly involved organizational buyers
Authors
Colleen E. McClure
Justin M. Lawrence
Todd J. Arnold
Lisa K. Scheer
Publication date
07-05-2022
Publisher
Springer US
Published in
Journal of the Academy of Marketing Science / Issue 2/2023
Print ISSN: 0092-0703
Electronic ISSN: 1552-7824
DOI
https://doi.org/10.1007/s11747-022-00859-6

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