IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v35y2003i14p1531-1541.html
   My bibliography  Save this article

Visits to the client when competing for new consulting contracts: sourcing information or influencing the client?

Author

Listed:
  • Roger Svensson

Abstract

Consulting firms (CFs) sell services on a project basis to many clients and must therefore continuously tender for new contracts. One frequently used strategy by CFs is to visit the clients in connection to the tenders. The reasons to the visits are: (1) to influence the client in his decision-making (e.g., marketing, bribing); and/or (2) to source information about the project so that a better proposal can be submitted. Using a unique database on individual export proposals submitted to emerging markets, which of these two reasons is the most important is examined empirically The estimations show that influencing the client dominates as explanation to the visits. Although it is not possible to determine whether this influence takes the form of bribing or marketing, all conditions necessary for bribes to occur are fulfilled.

Suggested Citation

  • Roger Svensson, 2003. "Visits to the client when competing for new consulting contracts: sourcing information or influencing the client?," Applied Economics, Taylor & Francis Journals, vol. 35(14), pages 1531-1541.
  • Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1531-1541
    DOI: 10.1080/0003684032000125097
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125097
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/0003684032000125097?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
    2. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August.
    3. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    4. Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
    5. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    6. Roger Svensson, 2001. "Success Determinants when Tendering for International Consulting Projects," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 101-122.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Svensson, Roger, 2000. "Visits to the Client when Tendering for Consulting Contracts: Sourcing Information or Influencing the Client?," Working Paper Series 531, Research Institute of Industrial Economics.
    2. Schumacher, Heiner, 2014. "Incentives through consumer learning about tastes," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 170-177.
    3. Jeanine Miklós-Thal, 2012. "Linking reputations through umbrella branding," Quantitative Marketing and Economics (QME), Springer, vol. 10(3), pages 335-374, September.
    4. Choi, Jay Pil, 2003. "Bundling new products with old to signal quality, with application to the sequencing of new products," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1179-1200, October.
    5. Belleflamme, Paul & Peitz, Martin, 2014. "Asymmetric information and overinvestment in quality," European Economic Review, Elsevier, vol. 66(C), pages 127-143.
    6. Guan Ru Chen, 2011. "The Threshold Effect of Advertising on the Intensity of Price Promotions: Using a Rational Expectations Model," Journal of Media Economics, Taylor & Francis Journals, vol. 24(2), pages 98-110, June.
    7. Donald George, 1997. "Production, Quality and Markets," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 4(1), pages 21-31.
    8. Mark W. Nichols, 1998. "Advertising and Quality in the U.S. Market for Automobiles," Southern Economic Journal, John Wiley & Sons, vol. 64(4), pages 922-939, April.
    9. Yuan Jiang & Xu Guan & Yao Tang & Simiao Chen, 2022. "Strategic stocking for new products to signal quality information," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 65-83, January.
    10. Fulan Wu, 2017. "Signaling Unobservable Quality Choice through Price and Advertising: The Case with Competing Firms," Manchester School, University of Manchester, vol. 85(2), pages 243-260, March.
    11. repec:eee:labchp:v:2:y:1986:i:c:p:789-848 is not listed on IDEAS
    12. Anderson, Simon P. & Gabszewicz, Jean J., 2006. "The Media and Advertising: A Tale of Two-Sided Markets," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 18, pages 567-614, Elsevier.
    13. David A. Soberman, 2004. "Research Note: Additional Learning and Implications on the Role of Informative Advertising," Management Science, INFORMS, vol. 50(12), pages 1744-1750, December.
    14. Soberman, David A. & Xiang, Yi, 2022. "Designing the content of advertising in a differentiated market," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 190-211.
    15. Ignatius Horstmann & Sridhar Moorthy, 2003. "Advertising Spending and Quality for Services: The Role of Capacity," Quantitative Marketing and Economics (QME), Springer, vol. 1(3), pages 337-365, September.
    16. Ricardo Sellers†Rubio & Francisco Mas†Ruiz & Franco Sancho†Esper, 2018. "Firm reputation, advertising investment, and price premium: The role of collective brand membership in high†quality wines," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 351-362, March.
    17. Kaya, Ayça, 2009. "Repeated signaling games," Games and Economic Behavior, Elsevier, vol. 66(2), pages 841-854, July.
    18. Eric Schmidbauer, 2016. "New and Improved?," Working Papers 2016-02, University of Central Florida, Department of Economics.
    19. Eckardt, Martina, 2007. "Does signaling work in markets for information services? An empirical investigation for insurance intermediaries in Germany," Thuenen-Series of Applied Economic Theory 77, University of Rostock, Institute of Economics.
    20. George, Donald A R, 2012. "Technical progress and product reliability under competition and monopoly," SIRE Discussion Papers 2012-23, Scottish Institute for Research in Economics (SIRE).
    21. Zeynep K. Hansen & Marc T. Law, 2008. "The Political Economy of Truth-in-Advertising Regulation during the Progressive Era," Journal of Law and Economics, University of Chicago Press, vol. 51(2), pages 251-269, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1531-1541. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.