The heart in organizational buying: marketers’ understanding of emotions and decision-making of buyers

2018 ◽  
Vol 33 (1) ◽  
pp. 19-28 ◽  
Author(s):  
Elyria A. Kemp ◽  
Aberdeen Leila Borders ◽  
Nwamaka A. Anaza ◽  
Wesley J. Johnston

Purpose Organizational buying behavior has often been treated as a rational activity, even though humans are involved in the decision-making. Human decision-making often includes a complex cadre of emotions and rationalizations. Subsequently, organizational buyers may not only be driven by logic, testing and facts, but also by emotions. The purpose of this paper is to investigate the role that emotions play in organizational buying behavior. Design/methodology/approach In-depth interviews were conducted with marketing decision-makers for one of the most valuable brands in the world. The role that emotions play in the behavior of organizational buyers is elucidated from the perspective of these marketing professionals. Findings Emotions are prevalent at all stages in the organizational decision-making process and various discrete emotions fuel action tendencies among buyers. Efforts are made by marketers to strategically manage the emotions buyers experience. Practical implications Although organizational buyers must see the functional value of a product or brand, companies need to consider ways in which brands can connect with buyers on an emotional and personal level. Originality/value This paper contributes to the literature by offering insights into which discrete or specific emotions are most prominent in organizational buying behavior and how the manifestation of these emotions impact decision-making at each stage in the buying cycle.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pooya Tabesh

Purpose While it is evident that the introduction of machine learning and the availability of big data have revolutionized various organizational operations and processes, existing academic and practitioner research within decision process literature has mostly ignored the nuances of these influences on human decision-making. Building on existing research in this area, this paper aims to define these concepts from a decision-making perspective and elaborates on the influences of these emerging technologies on human analytical and intuitive decision-making processes. Design/methodology/approach The authors first provide a holistic understanding of important drivers of digital transformation. The authors then conceptualize the impact that analytics tools built on artificial intelligence (AI) and big data have on intuitive and analytical human decision processes in organizations. Findings The authors discuss similarities and differences between machine learning and two human decision processes, namely, analysis and intuition. While it is difficult to jump to any conclusions about the future of machine learning, human decision-makers seem to continue to monopolize the majority of intuitive decision tasks, which will help them keep the upper hand (vis-à-vis machines), at least in the near future. Research limitations/implications The work contributes to research on rational (analytical) and intuitive processes of decision-making at the individual, group and organization levels by theorizing about the way these processes are influenced by advanced AI algorithms such as machine learning. Practical implications Decisions are building blocks of organizational success. Therefore, a better understanding of the way human decision processes can be impacted by advanced technologies will prepare managers to better use these technologies and make better decisions. By clarifying the boundaries/overlaps among concepts such as AI, machine learning and big data, the authors contribute to their successful adoption by business practitioners. Social implications The work suggests that human decision-makers will not be replaced by machines if they continue to invest in what they do best: critical thinking, intuitive analysis and creative problem-solving. Originality/value The work elaborates on important drivers of digital transformation from a decision-making perspective and discusses their practical implications for managers.


1972 ◽  
Vol 36 (2) ◽  
pp. 12-19 ◽  
Author(s):  
Frederick E. Webster ◽  
Yoram Wind

The authors suggest a model of industrial and institutional buying behavior as an organizational decision-making process. The major dimensions of the model are defined and some implications for marketing strategy are developed.


2018 ◽  
Vol 23 (2) ◽  
pp. 274-291 ◽  
Author(s):  
Christina S. Hagen ◽  
Leila Bighash ◽  
Andrea B. Hollingshead ◽  
Sonia Jawaid Shaikh ◽  
Kristen S. Alexander

Purpose Organizations and their actors are increasingly using video surveillance to monitor organizational members, employees, clients, and customers. The use of such technologies in workplaces creates a virtual panopticon and increases uncertainty for those under surveillance. Video surveillance in organizations poses several concerns for the privacy of individuals and creates a security-privacy dilemma for organizations to address. The purpose of this paper is to offer a decision-making model that ties in ethical considerations of access, equality, and transparency at four stages of video surveillance use in organizations: deployment of cameras and equipment, capturing footage, processing and storing data, and editing and sharing video footage. At each stage, organizational actors should clearly identify the purpose for video surveillance, adopt a minimum capability necessary to achieve their goals, and communicate decisions made and actions taken that involve video surveillance in order to reduce uncertainty and address privacy concerns of those being surveilled. Design/methodology/approach The paper proposes a normative model for ethical video surveillance organizational decision making based on a review of relevant literature and recent events. Findings The paper provides several implications for the future of dealing with security-privacy dilemmas in organizations and offers structured considerations for corporation leaders and decision makers. Practical implications The paper includes implications for organizations to approach video surveillance with ethical considerations for stakeholder privacy while balancing security demands. Originality/value This paper offers a framework for decision-makers that also offers opportunities for further research around the concept of ethics in organizational video surveillance.


Author(s):  
Csaba Csáki

During the history of decision support systems (DSSs)— in fact, during the history of theoretical investigations of human decision-making situations—the decision maker (DM) has been the centre of attention who considers options and makes a choice. However, the notion and definitions of this decision maker, as well as the various roles surrounding his or her activity, have changed depending on both time and scientific areas. Reading the DSS literature, one might encounter references to such players as decision makers, problem owners, stakeholders, facilitators, developers, users, project champions, and supporters, and the list goes on. Who are these players, what is their role, and where do these terms come from? This article presents a review in historical context of some key interpretations aimed at identifying the various roles that actors may assume in an organizational decision-making situation.


2019 ◽  
Vol 40 (2) ◽  
pp. 117-143 ◽  
Author(s):  
Martin C. Schleper ◽  
Constantin Blome ◽  
Alina Stanczyk

Purpose The purpose of this paper is to develop taxonomy of sourcing decision-making (SDM) archetypes and explore how different contextual factors influence these archetypes when global sourcing of complex components is considered a viable option. Design/methodology/approach A multiple case study approach with five in-depth cases is employed. In total, 19 interviews as well as publicly available and internal data from large buying firms headquartered in Austria and Germany were collected and analyzed. Findings The results reveal three different SDM archetypes which are described in detail (i.e. “consensus,” “argumentation” and “cabal”). Furthermore, it is found that these archetypes are mainly influenced by three contextual factors: sourcing maturity, product complexity and leadership style. The final model comprises six propositions which illustrate how these contextual factors determine companies’ SDM archetypes. Research limitations/implications The study contributes to theory development at the intersection of organizational buying behavior and the (global) SDM literature. Thereby, it answers the call for more rigorous investigation of the influence of contextual factors on SDM processes. Practical implications The findings enable practitioners to better understand and consequently manage SDM processes and their outcomes. By supporting decision-makers in identifying SDM archetypes, this study allows sourcing managers and teams to make better decisions by avoiding problems that occur in situations in which the preferred decision-making type would result in suboptimal decisions. Originality/value The study provides a first step toward taxonomy of SDM archetypes and is among the first that explores their underlying contextual factors.


2020 ◽  
Vol 54 (7) ◽  
pp. 1609-1640 ◽  
Author(s):  
Elyria Kemp ◽  
Elten Briggs ◽  
Nwamaka A. Anaza

Purpose Researchers and practitioners have traditionally maintained that organizational buying requires rational decision-making. However, individuals at organizations make decisions daily applying a confluence of rationalizations and emotions. This study aims to address the roles of personal feelings, facts and emotional advertising content in the organizational decision-making process. Design/methodology/approach In two studies, the authors apply both qualitative and quantitative methods to explore emotional and cognitive reactions to advertising. In Study 1, depth interviews were conducted with marketing and advertising content developers from a Fortune 100 technology company. In Study 2, a web-based survey was sent out to a Fortune 100 company’s buyer panel. Findings Results suggest that advertising using emotion-based themes helps to foster brand engagement tendencies and advocacy for a brand. Findings also demonstrate that organizational status (C-level executive’s vs non-C-level employees) moderates the relationship between buyers’ reliance on facts and their receptivity to advertising using emotion-based themes, such that reliance on facts increases the appeal of emotional advertising. Research limitations/implications This research contributes to the organizational buying literature by addressing the dearth of research on the role of emotions in organizational decision-making and providing insight into the role of advertising in business-to-business (B2B) decision-making. Practical implications These results imply that advertising incorporating emotion-based themes provide meaningful information to B2B buyers and is especially effective when targeted at buyers at higher levels in an organization. Originality/value B2B buying behavior has traditionally been considered a rational undertaking. This research explores how decision-making orientation and the presence of advertising using emotion-based themes help to foster engagement and advocacy for the brand.


2017 ◽  
Vol 24 (1) ◽  
pp. 71-86
Author(s):  
Amin Wibowo

Up to now, organizational buying is still interesting topic discussed. There are divergences among the findings in organizational buying researches. Different perspectives, fenomena observed, research domains and methods caused the divergences. This paper will discusse organizational buying behavior based on literature review, focused on behavior of decision making unit mainly on equipment buying. From this review literatures, it would be theoritical foundation that is valid and reliable to develop propositions in organizational buying behavior. Based on review literature refferences, variables are classified into: purchase situation, member of decision making unit perception, conflict among the members, information search, influences among members of decision making unit. Integrated approach is used to develop propositions relating to: purchasing complexity, sharing responsibility among the members, conflict in decision making unit, information search, time pressure as moderating variable between sharing responsibility and conflict in decision making unit, the influence among the members inside decision making unit and decision making outcome


2020 ◽  
Vol 11 (1) ◽  
pp. 187-206
Author(s):  
Philipp Hummel ◽  
Jacob Hörisch

Purpose Stakeholder theory research identifies changes in language as one possible mechanism to overcome the deficiencies of current accounting practices with regard to social aspects. This study aims to examine the effects of the terms used for specific accounts on company internal decision-making, drawing on the example of “value creation accounting”. Design/methodology/approach The study uses a survey based-experiment to analyze the effects of terms used for specific accounts on decision-making, with a focus on social aspects (in particular expenditures for staff) in cost reduction and expenditure decisions. Findings The findings indicate that wordings, which more closely relate to value creation than to costs, decrease cost reductions and increase the priority ascribed to the social aspect of reducing staff costs in times of financial shortage. The effects of terms used on cost reductions are stronger among female decision makers. Practical implications The analysis suggests that conventional accounting language best suits organizations that aim at incentivizing decision makers to primarily cut costs. By contrast, if an organization follows an approach that puts importance on social aspects in times of financial shortage and on not doing too sharp cost reductions, value creation-oriented language is the more effective approach. Social implications The study suggests that the specific terminology used for accounts should be chosen more carefully and with awareness for the possible effects on cost reduction decisions as well as on social consequences. Originality/value This study contributes to a better understanding of the relevance of language in accounting. It suggests that the terms used for accounts should be chosen purposefully because of their far-reaching potential consequences for stakeholders as well as for the organization.


2016 ◽  
Vol 29 (5) ◽  
pp. 536-549 ◽  
Author(s):  
Pascale Simons ◽  
Jos Benders ◽  
Jochen Bergs ◽  
Wim Marneffe ◽  
Dominique Vandijck

Purpose – Sustainable improvement is likely to be hampered by ambiguous objectives and uncertain cause-effect relations in care processes (the organization’s decision-making context). Lean management can improve implementation results because it decreases ambiguity and uncertainties. But does it succeed? Many quality improvement (QI) initiatives are appropriate improvement strategies in organizational contexts characterized by low ambiguity and uncertainty. However, most care settings do not fit this context. The purpose of this paper is to investigate whether a Lean-inspired change program changed the organization’s decision-making context, making it more amenable for QI initiatives. Design/methodology/approach – In 2014, 12 professionals from a Dutch radiotherapy institute were interviewed regarding their perceptions of a Lean program in their organization and the perceived ambiguous objectives and uncertain cause-effect relations in their clinical processes. A survey (25 questions), addressing the same concepts, was conducted among the interviewees in 2011 and 2014. The structured interviews were analyzed using a deductive approach. Quantitative data were analyzed using appropriate statistics. Findings – Interviewees experienced improved shared visions and the number of uncertain cause-effect relations decreased. Overall, more positive (99) than negative Lean effects (18) were expressed. The surveys revealed enhanced process predictability and standardization, and improved shared visions. Practical implications – Lean implementation has shown to lead to greater transparency and increased shared visions. Originality/value – Lean management decreased ambiguous objectives and reduced uncertainties in clinical process cause-effect relations. Therefore, decision making benefitted from Lean increasing QI’s sustainability.


2014 ◽  
Vol 7 (3) ◽  
pp. 518-535 ◽  
Author(s):  
Mark Mullaly

Purpose – The purpose of this paper is to explore the role of decision rules and agency in supporting project initiation decisions, and the influences of agency on decision-making effectiveness. Design/methodology/approach – The study this paper is based upon used grounded theory methodology, and sought to understand the influences of individual decision makers on project initiation decisions within organizations. Data collection involved 28 participants who were involved in project initiation decisions within their organizations, who discussed the process of project initiation in their organization and their role within that process. Findings – The study demonstrates that the overall effectiveness of project initiation decisions is a product of agency, process effectiveness or rule effectiveness. The employment of agency can have a direct influence on decision-making effectiveness, it can compensate for organizational inadequacies of a process or political nature, and it can be constrained in the evidence of formal and effective organizational practices. Research limitations/implications – While agency was recognized by all participants, there are clearly circumstances where actors perceive the ability to exercise agency to be externally constrained. The study is exploratory, contributing to the development of substantive theory. Theory testing as well as a more in-depth investigation of the underlying drivers of agency would be valuable. Practical implications – The study provides executives and individuals supporting the initiation of projects with insights on how to effectively influence the effectiveness of project initiation decisions, and the degree to which personal characteristics influence organizational dynamics. Originality/value – Most discussions of agency has been framed the subject as an executive- or board-level phenomenon. The current study demonstrates that agency is in fact being perceived and operationalized at all levels. Those demonstrating agency in the majority of instances in this study do so in exercising stewardship behaviours. This has important implications for how agency is perceived by executives, and by how agency is exercised by actors at all levels of the organization.


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