ONGOING SEARCH AMONG INDUSTRIAL BUYERS Lingnan University MBA 655: Business to Business Marketing ONGOING SEARCH AMONG INDUSTRIAL BUYERS Stefania Borghini, Francesca Golfetto, Diego Rinallo Journal of Business Research 59 (2006) 1151-1159 Article presented by: Detloff Rump 29 November 2008
Key questions: How do organizational buyers behave at trade shows? What may be the implications for those organizations presenting at trade shows?
Introduction Most existing literature focuses on communication to buyers with short term purchase intention (pre-purchase or purchase proper) There is not much literature on ongoing (longer perspective, purchase -independent) search behavior by organizational buyers
Introduction (cont’d) Literature on trade shows (TS) involves aspects on purchase-unrelated search behavior How do exhibitors measure success/return on investment? Attendees from target audiences (members of buying centers)? Immediate/subsequent purchases? Is focus on “close” circles missing the opportunities to reach out to on-going search (browsing) buyers?
Understanding ongoing search(existing literature) Information after purchase to reduce cognitive tension Information about product range to get ideas Influencers enhance credibility by gathering information Information about evolutions of industries or technology Relationships
Methodology Ethnographic concept: as cognitive aspects result in physical behaviour, this behavior can be observed and interpreted Interviews, photos, videos, field notes (qualitative) Data from trade show organizers (quantitative) 11 trade shows: textile apparel and wood-furniture 80 researcher days, 180 interviews, 20 hrs video, several hundred photos Caveat: cultural differences
Findings (1): TS Audience Atypical visitors sometimes >50%: e.g. exhibitors’ suppliers and competitors, members of related industries (average 37% for retail oriented TS, 18% for industrial user oriented TS) Typical visitors also often not interested in immediate buying (average 62%) [buying centers=learning centers] Typical visitors have diverse intentions: knowledge, courtesy, inspiration, community, reassurance, skills update
Findings (2): Outcomes Unexpected knowledge Inspiration Reassurance Products, suppliers, trends “irrelevant” details Market leaders Inspiration Often unrelated to or exceeding exhibitor’s message Reassurance Confirmation of existing suppliers Peer comparison Relationships Not sales reps only Peers
Findings (3): Experiential nature Touch, smell… Prototypes, samples: revoke experience Interact/socialize in a “neutral” environment Suppliers Peers
Findings (4) Ritual dimension Neo-tribal need of periodical meetings TS regular (innovation cycle) Leading innovations (trend areas) Micro rituals at stands Communitas Liminality
Findings (summary) Audience: on-going search broad (going beyond immediate areas of interest) and generalized (sharing views) Outcomes: beyond what exhibitors intend to achieve Experience: holistic Ritual dimension: neo-tribal behavior
Theoretical framework LIMINAL SPACE Experience providers Ongoing search Exhibors’ -Products -Human resources -Other customers Broader effects Unexpected knowledge -Inspiration -Reassurance -Establishing/maintaining realtionships -Sense of community -Collective sense making TS organzers’ -Atmosphere -Trend areas - Selection of eXhibitors RITUALIZED BEHAVIOR
Trade shows… Are important for industries and markets Are activities revolving around experiences (outcomes are influenced by experiences) Are temporary networks of companies accommodating micro-experiences Create space for ongoing search Have ritual dimensions Are events with macro-level effects
Managerial implications Good TS are created by 3 parties (organizers, exhibitors and visitors): select well! Market leaders play a pivotal role and should be present Welcoming “curious” visitors can be commercially viable (brand, reputation) Allow for longer time horizons for return on investment
Questions or comments?