The application of a composite model of organizational buying decisions to the study of transportation purchasing

A large amount of research in recent years has been devoted to roles and interactions among the members of the organizational buying centers of firms in the industrial market. A literature review showed that there is no comprehensive model which ties this research into a framework for determining who the members are apt to be. Unless membership in the buying center can be readily determined, knowledge about the roles and interactions among the members has little pragmatic value.

During the extensive literature research for this project, a Composite Model with key variables for determining the management level and functional areas of major importance in the buying process. The Composite Model combines the thoroughly tested components of the Buygrid model with the purchase need, dollar value of the purchase and time commitment implicit in the purchase. The environmental effects on the decisions allowed by the firm and how they impact these decisions are closely integrated into the model.

Freight transportation was selected as a "product" for testing the model. Every firm in the industrial market has the potential of at least eight transportation buying centers. For both inbound and outbound freight, F.O.B. point, mode, carrier approval and carrier selection decisions must be made. The effects of channel position and power, tradition in the industry or other external factors may reduce the number the firm actually makes. Transportation served as an excellent product to determine which decisions the firm does make and how the buying center principal members can be determined.

The model was used as a basis for forming tests for the composition of the transportation buying centers. Detailed field interviews were conducted with eighteen manufacturing firms in the Spring of 1986. The data were analyzed to determine whether different buying centers did exist in the same firm and whether they used different decision criteria consistent with the framework of The Composite Model.

The results showed that The Composite Model can serve as a useful analytic tool for all disciplines involved in purchasing, distributing or marketing a product or service.