An Inductive Model of Industrial Supplier Choice Processes

Decision systems analysis, participant observation, and document analysis were used to collect data on the activities, decisions, and interactions of persons involved in 18 plant purchasing agreements (PPAs) in six industrial firms. PPAs are statements of intention to buy (and sell) a quantity of a specified production or nonproduction material within a given time period, usually a year or more. A descriptive, composite model of activities, decisions, and interactions is presented. Differences and similarities across the 18 PPAs investigated in the study are reviewed. Implications for theory development and for marketing management are offered.

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