IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v67y2014i8p1581-1588.html
   My bibliography  Save this article

Internal and external price search in industrial buying: The moderating role of customer satisfaction

Author

Listed:
  • Homburg, Christian
  • Allmann, Jan
  • Klarmann, Martin

Abstract

Despite price's great relevance in organizational buying decisions, prior research primarily studies price search in business-to-consumer environments. This research conceptualizes both internal and external price search in a business-to-business setting and focuses on how price importance affects these two types as well as how customer satisfaction moderates the relationships. Results show that purchasing managers' satisfaction associates positively with the effect of price importance on internal price search. Also, their satisfaction negatively associates with the effect of price importance on external price search. Price search reduces the price premium paid by customers (especially external price search).

Suggested Citation

  • Homburg, Christian & Allmann, Jan & Klarmann, Martin, 2014. "Internal and external price search in industrial buying: The moderating role of customer satisfaction," Journal of Business Research, Elsevier, vol. 67(8), pages 1581-1588.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:8:p:1581-1588
    DOI: 10.1016/j.jbusres.2013.10.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296313003494
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2013.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arnold, Michael A & Lippman, Steven A, 1998. "Posted Prices versus Bargaining in Markets with Asymmetric Information," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 450-457, July.
    2. Gene M. Grossman & Elhanan Helpman, 2005. "Outsourcing in a Global Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 135-159.
    3. Stock, Ruth, 2005. "Can Customer Satisfaction Decrease Price Sensitivity in Business-to-Business Markets?," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35541, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Johnston, Wesley J. & Lewin, Jeffrey E., 1996. "Organizational buying behavior: Toward an integrative framework," Journal of Business Research, Elsevier, vol. 35(1), pages 1-15, January.
    5. Zablah, Alex R. & Brown, Brian P. & Donthu, Naveen, 2010. "The relative importance of brands in modified rebuy purchase situations," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 248-260.
    6. N/A, 2009. "On the Recession," Local Economy, London South Bank University, vol. 24(3), pages 253-253, May.
    7. Stock, Ruth, 2005. "Can Customer Satisfaction Decrease Price Sensitivity in Business-to-Business Markets?," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60480, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Kujala, Jouni T. & Johnson, Michael D., 1993. "Price knowledge and search behavior for habitual, low involvement food purchases," Journal of Economic Psychology, Elsevier, vol. 14(2), pages 249-265, June.
    9. Srivastava, Joydeep & Lurie, Nicholas, 2001. "A Consumer Perspective on Price-Matching Refund Policies: Effect on Price Perceptions and Search Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(2), pages 296-307, September.
    10. Johnson, Michael D & Anderson, Eugene W & Fornell, Claes, 1995. "Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(4), pages 695-707, March.
    11. Birger Wernerfelt, 1994. "Selling Formats for Search Goods," Marketing Science, INFORMS, vol. 13(3), pages 298-309.
    12. Diehl, Kristin & Kornish, Laura J & Lynch, John G, Jr, 2003. "Smart Agents: When Lower Search Costs for Quality Information Increase Price Sensitivity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(1), pages 56-71, June.
    13. Wolfgang Ulaga & Andreas Eggert, 2006. "Value-Based Differentiation in Business Relationships: Gaining and Sustaining Key Supplier Status," Post-Print hal-00482456, HAL.
    14. Wang, Ruqu, 1995. "Bargaining versus posted-price selling," European Economic Review, Elsevier, vol. 39(9), pages 1747-1764, December.
    15. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    16. Nitin Mehta & Surendra Rajiv & Kannan Srinivasan, 2003. "Price Uncertainty and Consumer Search: A Structural Model of Consideration Set Formation," Marketing Science, INFORMS, vol. 22(1), pages 58-84, June.
    17. Homburg, Christian & Stock, Ruth, 2004. "The Link Between Sales People’s Job Satisfaction and Customer Satisfaction in a Business-to-Business Context: A Dyadic Analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35550, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    18. Wuyts, Stefan & Verhoef, Peter C. & Prins, Remco, 2009. "Partner selection in B2B information service markets," International Journal of Research in Marketing, Elsevier, vol. 26(1), pages 41-51.
    19. Homburg, Christian & Stock, Ruth, 2004. "The Link between Sales People’s Job Satisfaction and Customer Satisfaction in a Business-to-Business Context: A Dyadic Analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60486, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    20. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    21. John Henke & Sengun Yeniyurt & Chun Zhang, 2009. "Supplier price concessions: A longitudinal empirical study," Marketing Letters, Springer, vol. 20(1), pages 61-74, March.
    22. Preyas S. Desai & Devavrat Purohit, 2004. "“Let Me Talk to My Manager”: Haggling in a Competitive Environment," Marketing Science, INFORMS, vol. 23(2), pages 219-233, August.
    23. Wilken, Robert & Cornelißen, Markus & Backhaus, Klaus & Schmitz, Christian, 2010. "Steering sales reps through cost information: An investigation into the black box of cognitive references and negotiation behavior," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 69-82.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Torsten Bornemann & Martin Klarmann & Martin Moosbrugger, 2020. "Verhaltenswissenschaftliche Forschung zum organisationalen Einkaufsverhalten: Überblick über die Marketingliteratur [Behavioral B2B Buying Research—An Overview of the Marketing Literature]," Schmalenbach Journal of Business Research, Springer, vol. 72(4), pages 447-478, December.
    2. Ashley S. Otto & David M. Szymanski & Rajan Varadarajan, 2020. "Customer satisfaction and firm performance: insights from over a quarter century of empirical research," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 543-564, May.
    3. Ferguson, Jodie L. & Brown, Brian P. & Johnston, Wesley J., 2017. "Partitioned pricing, price fairness perceptions, and the moderating effects of brand relationships in SME business markets," Journal of Business Research, Elsevier, vol. 72(C), pages 80-92.
    4. Pade, Robin & Feurer, Sven, 2022. "The mitigating role of nostalgia for consumer price unfairness perceptions in response to disadvantageous personalized pricing," Journal of Business Research, Elsevier, vol. 145(C), pages 277-287.
    5. Alice Audrezet & Béatrice Parguel, 2017. "Designing measurement tools to improve fluency and certainty: The case of online customer satisfaction evaluation," Post-Print hal-01821838, HAL.
    6. Hinterhuber, Andreas, 2017. "Value quantification capabilities in industrial markets," Journal of Business Research, Elsevier, vol. 76(C), pages 163-178.
    7. Nita Umashankar & Yashoda Bhagwat & V. Kumar, 2017. "Do loyal customers really pay more for services?," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 807-826, November.
    8. Habjan Andreja, 2023. "How a Perceived Utilisation of IT-enabled Information shapes Customer Satisfaction in B2B arkets," Business Systems Research, Sciendo, vol. 14(2), pages 81-101, December.
    9. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    10. Gordon Liu & Wai Wai Ko & Chris Chapleo, 2018. "How and When Socially Entrepreneurial Nonprofit Organizations Benefit From Adopting Social Alliance Management Routines to Manage Social Alliances?," Journal of Business Ethics, Springer, vol. 151(2), pages 497-516, August.
    11. Prince, Melvin & Kwak, Lynn & Priporas, Constantinos Vasilios, 2019. "The Diogenes Effect in retail buyer information processing," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 164-172.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Worm, Stefan & Srivastava, Rajendra K., 2014. "Impact of component supplier branding on profitability," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 409-424.
    2. Zeng, Xiaohua & Dasgupta, Srabana & Weinberg, Charles B., 2016. "The competitive implications of a “no-haggle” pricing strategy when others negotiate: Findings from a natural experiment," International Journal of Research in Marketing, Elsevier, vol. 33(4), pages 907-923.
    3. Zeng, Xiaohua & Dasgupta, Srabana & Weinberg, Charles B., 2014. "The effects of a “no-haggle” channel on marketing strategies," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 434-443.
    4. Liang Guo, 2022. "Strategic Communication Before Price Haggling: A Tale of Two Orientations," Marketing Science, INFORMS, vol. 41(5), pages 922-940, September.
    5. Selcuk, Cemil & Gokpinar, Bilal, 2017. "Fixed vs. Flexible Pricing in a Competitive Market," Cardiff Economics Working Papers E2017/9, Cardiff University, Cardiff Business School, Economics Section.
    6. Sandro Shelegia & Joshua Sherman, 2018. "Bargaining at Retail Stores: Evidence from Vienna," Economics Working Papers 1606, Department of Economics and Business, Universitat Pompeu Fabra.
    7. Jason Allen & Robert Clark & Jean-François Houde, 2019. "Search Frictions and Market Power in Negotiated-Price Markets," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1550-1598.
    8. Cardella, Eric & Seiler, Michael J., 2016. "The effect of listing price strategy on real estate negotiations: An experimental study," Journal of Economic Psychology, Elsevier, vol. 52(C), pages 71-90.
    9. Zhang, Xubing & Jiang, Bo, 2014. "Increasing Price Transparency: Implications of Consumer Price Posting for Consumers' Haggling Behavior and a Seller's Pricing Strategies," Journal of Interactive Marketing, Elsevier, vol. 28(1), pages 68-85.
    10. Selcuk, Cemil, 2023. "Why Fixed-Price Policy Prevails: The Effect of Trade Frictions and Competition," Cardiff Economics Working Papers E2023/18, Cardiff University, Cardiff Business School, Economics Section.
    11. Liang Guo, 2023. "Gathering Information Before Negotiation," Management Science, INFORMS, vol. 69(1), pages 200-219, January.
    12. Dmitri Kuksov, 2004. "Buyer Search Costs and Endogenous Product Design," Marketing Science, INFORMS, vol. 23(4), pages 490-499, May.
    13. Kuo, Chia-Wei & Huang, Kwei-Long, 2012. "Dynamic pricing of limited inventories for multi-generation products," European Journal of Operational Research, Elsevier, vol. 217(2), pages 394-403.
    14. Mark Ojeme, 2017. "Assessing the Impact of Relationship Length in the SMEs and Bank Association," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 9(5), pages 17-27, October.
    15. Lemieux, James & Peterson, Robert A., 2011. "Purchase deadline as a moderator of the effects of price uncertainty on search duration," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 33-44, February.
    16. Cemil Selcuk & Bilal Gokpinar, 2018. "Fixed vs. Flexible Pricing in a Competitive Market," Management Science, INFORMS, vol. 64(12), pages 5584-5598, December.
    17. Gill, David & Thanassoulis, John, 2009. "The impact of bargaining on markets with price takers: Too many bargainers spoil the broth," European Economic Review, Elsevier, vol. 53(6), pages 658-674, August.
    18. Sik Sumaedi & Tri Rakhmawati, 2017. "The effect of system design type on ISO 9001 implementation outcome: a proposed conceptual framework and future research agenda," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 219-229, January.
    19. Qi Feng & Yuanchen Li & J. George Shanthikumar, 2020. "Competitive Revenue Management with Sequential Bargaining," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1307-1324, May.
    20. Preyas S. Desai & Devavrat Purohit, 2004. "“Let Me Talk to My Manager”: Haggling in a Competitive Environment," Marketing Science, INFORMS, vol. 23(2), pages 219-233, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:67:y:2014:i:8:p:1581-1588. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.