An examination of buying centres in Irish biotechnology companies and its marketing implications

Abstract

Purpose -This research is a qualitative study which aims to investigate the intricacies of organisational buying behaviour in the context of the Irish biotechnology industry. Particularly the research seeks to focus on the phenomenon of buying centres as the core decision-making unit in an organisation and examines the functionality of such a process. The main aims of the research study is to examine key influencers, as well as to examine the decision process itself so as to fully comprehend modern organisational buyer behaviour and to discuss these issues from a practical viewpoint beneficial to both the marketing and purchasing functions. Design/methodology/approach -The research process was conducted through qualitative methods, which formed a combination of focus group and key respondent interviewing. A triangular approach of data was also used to obtain quality information and to achieve a platform upon which to base accurate conclusions. A small number of organisations from industry participated in this study, which was deemed sufficient as the purpose of the study was gaining insight as opposed to proving or disproving previous theories. Findings -It was discovered that users were key influencers in the decision process as were quality control personnel. In addition the business functions were found to be the decision makers in a highly dynamic buying centre process, which is constantly changing in terms of numbers, participation, and structure. Based on the finding of the research newer models of organisation buying behaviour were developed in addition to appropriate marketing strategies being put forward in order to better represent the realities of modern business-to-business marketing. This is where the real benefits of this research will be seen as marketing organisations become more efficient, buying organisations develop best practice procedures, and academics can build on this research base to further enhance marketing knowledge. Originality/value -The paper examines buying centres in Irish biotechnology companies and offers recommendations for future research.

Assessing the impact of e-procurement on the structure of the buying centre

“…The number of buying centre participants evident in buying centre activity was not found to be static or standardised in numbers. Although the size of the buying centre was seen to be fluid, we concur with Howard and Doyle (2006) in that the degree of change detected throughout the process was not as drastic as may have been anticipated. As did Smith and Taylor (1985) we found that purchasing decisions taken at the buying centre are influenced by at least three people.…”

“…This may be put down to various reasons: (1) the high investment and strategic importance of the product acquired; (2) most of the firms considered in this study were medium sized organisations and as Daulatram (1989) points out, the smaller the firm the higher the involvement of top management in the purchasing decision process and (3) another reason may well be linked to individual managers' attitudes towards perceived risk as opposed to other functional factors. The decision making manager is held liable for the final decision outcome whether he/she makes that decision or not, thus creating an element of risk which managers feel they can control, if not minimise, by making the final decision themselves (Howard & Doyle, 2006). The number of buying centre participants evident in buying centre activity was not found to be static or standardised in numbers.…”

“…The complexity of buying behaviour requires proactive marketing (Ghingold & Wilson, 1988;Howard & Doyle, 2006). The earlier the marketer is able to approximate buying centre composition and the status of the buying process, the easier it will be to reach participants, influencers and decision-makers before product specifications or other drivers of vendor choice are firmly established.…”

‘Good’ case research in industrial marketing: Insights from research practice

“…Other unusual data sources to be used were court transcripts (e.g. Vaaland, 2006), photographs (Hausman, 2005), a field experiment (Higgins 1999), and focus groups to complement interviews (Howard & Doyle, 2006). One study specifically positioned itself as action research (Palmer & Miller, 2004).…”

Le comportement d'achat organisationnel des emballages des produits périssables dans le secteur du commerce de détail

“…Le centre d'achat est une unité composée d'un groupe de personnes qui prennent collectivement des décisions d'achat particulières dans l'organisation (Osmonbekov et al, 2002). La compréhension de la structure du centre d'achat procure des informations pertinentes sur les acteurs clés qui participent dans le processus d'achat, leur influence relative sur la décision d'achat ainsi que les principaux critères considérés dans leur processus décisionnel (Howard et Doyle, 2006). Les structures des centres d'achat changent avec le temps et diffèrent d'une organisation à une autre.…”