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

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  • 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).

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  • 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
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    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. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    9. 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.
    10. 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.

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