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Factors affecting the decision to purchase from third world manufacturers: The British experience

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  • Leonidou, Leonidas C.

Abstract

The article focuses on the decision of importers based in developed countries to purchase their goods from developing countries. The factors which influence this decision were classified into price-related, non-price related and mixed. Twenty-one British importers buying from Cypriot suppliers provided the research sample. The results of the study showed that the import decision was influenced by an amalgamation of both price and non-price considerations, where the latter had greater priority compared to the former. "Good value for money", a mixed stimulus, was unaminously declared to be the primary input in this decision. Certain implications for developing country-based suppliers stemmed from the research findings: the need to shift the base of their export strategy from cost-price factors to non-price considerations, to improve their image in the "service" area, to enhance their ability to execute large orders and to take more active participation in marketing their products abroad.

Suggested Citation

  • Leonidou, Leonidas C., 1988. "Factors affecting the decision to purchase from third world manufacturers: The British experience," European Management Journal, Elsevier, vol. 6(3), pages 262-268, September.
  • Handle: RePEc:eee:eurman:v:6:y:1988:i:3:p:262-268
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    Cited by:

    1. Katsikeas, Constantine S. & Al-Khalifa, Ali & Crick, Dave, 1997. "Manufacturers' understanding of their overseas distributors: the relevance of export involvement," International Business Review, Elsevier, vol. 6(2), pages 147-163, April.
    2. Bilge Aykol & Dayananda Palihawadana & Leonidas C. Leonidou, 2013. "Research on the Import Activities of Firms 1960–2010," Management International Review, Springer, vol. 53(2), pages 215-250, April.
    3. Leonidou, Leonidas C. & Palihawadana, Dayananda & Chari, Simos & Leonidou, Constantinos N., 2011. "Drivers and outcomes of importer adaptation in international buyer-seller relationships," Journal of World Business, Elsevier, vol. 46(4), pages 527-543, October.

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