M.T. Cunningham and K. Kettlewood
The freight transport market in the UK has been increasing at a rate of between 1 and 2% p.a. since the mid 1960 a s measured by total ton‐miles and it is worth some £1,500…
Abstract
The freight transport market in the UK has been increasing at a rate of between 1 and 2% p.a. since the mid 1960 a s measured by total ton‐miles and it is worth some £1,500 million annually. The freight business of British Rail, which accounts for approximately 20% of the total market size is of particular importance to the financial viability of the railways as a whole, owing to the fact that freight traditionally has generated about 40% of the revenue of British Rail and difficulty has been experienced in operating it at a sufficiently profitable level to provide for essential re‐investment in the business. This lack of profitability caused consideration to be given to the possibility of withdrawing altogether from the market for freight traffic in less than train‐loads but this was rejected on the grounds that freigh traffic shares assets such as track, signalling, locomotives and manpower with other rail services. A withdrawal from the smaller “wagon load” traffic would reduce traffic by nearly 50% and lead to an under‐utilisation of assets thus weakening overall rail profitability.
The UK market for freight transport services used to becharacterized by buyer inertia and high levels of source loyalty. Forthe last decade, suppliers of freight transport…
Abstract
The UK market for freight transport services used to be characterized by buyer inertia and high levels of source loyalty. For the last decade, suppliers of freight transport services have been operating in competitive markets in which supply has exceeded demand. Simultaneously attitudes to distribution management have been changing. Although transport costs account for a large percentage of total distribution costs, little is known of the effect of these changed attitudes on this function and on the nature of the relationships between buyers and suppliers. Using the Interaction Model of the IMP Group as a conceptual framework for the research, reports the results of a survey of transport managers conducted in Scotland, a coherent geographical region within the United Kingdom. Contains tables showing the distributions of ages and years of experience of transport buyers, their qualifications, the annual sum spent on transport and the contribution of the cost of haulage to the final cost of the major product transported, the frequency with which transport cost information goes to senior management and transport managers′ assessments of their firm′s senior management′s attitudes to distribution. Shows that transport managers have a higher status in their organizations than before and greater independence of decision making. Provides profiles of the transport manager′s job in companies with an “advanced” and “traditional” approach to distribution. These changes in the characteristics of transport managers and in the organizational factors which influence their behaviour are important to hauliers, as they affect both the nature and the duration of the relationship between buyer and supplier and the determinants of haulier selection.
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M. T. Cunningham and K. Kettlewood
Suggests that source loyalty can be described as the preference of a buyer to purchase a product or service from the same source as previously. Investigates the case of freight…
Abstract
Suggests that source loyalty can be described as the preference of a buyer to purchase a product or service from the same source as previously. Investigates the case of freight transport. Reveals a high degree of loyalty among respondent firms, which is attributable to service quality.
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Marketing literature has long concerned itself with the purchasing behaviour of organisations and provides suitable models for the evaluation of such decision‐making processes…
Abstract
Marketing literature has long concerned itself with the purchasing behaviour of organisations and provides suitable models for the evaluation of such decision‐making processes. Analysts evaluating international shipping, on the other hand, have been preoccupied with industry structure — its efficiency and its competitiveness — often viewing shippers as being homogeneous (price‐oriented). This article proposes to assess the purchase of international transport services, specifically container shipping services, from a marketer's viewpoint in order to determine the factors which limit the inclusion of a carrier in a shipper's choice set.
This paper is concerned with examining the variables which influence the periodic redesign of physical distribution systems. It assumes that with a few exceptions every…
Abstract
This paper is concerned with examining the variables which influence the periodic redesign of physical distribution systems. It assumes that with a few exceptions every arrangement for moving goods from production to customer is one which has been built up through a series of non‐related decisions made in answer to a problem which has developed to such proportions that it cannot be solved by adjusting the existing system. The paper ignores also the relatively few companies who are large enough to use an integrated distribution system which has been developed with the aid of a simulation or with linear programming techniques. The problems of these companies are adequately dealt with in the literature on simulation and linear programming techniques.
Nwamaka A. Anaza, Brian N. Rutherford, Gavin Jiayun Wu and Ashok Bhattarai
Drawing on the organizational buying decision-making framework, the purpose of this study is to investigate how sales orientation (SOCO) affects buyers’ conflict…
Abstract
Purpose
Drawing on the organizational buying decision-making framework, the purpose of this study is to investigate how sales orientation (SOCO) affects buyers’ conflict, salesperson-owned loyalty and buyers’ propensity to end a supply relationship when selling firms use a single versus multiple salesforce go-to-market strategy.
Design/methodology/approach
Survey data was analyzed with a sample of organizational buyers. Confirmatory factor analysis and structural equation modeling were used to analyze the data.
Findings
Findings reveal that a selling firm’s go-to-market salesforce strategy moderates certain relational aspects of the buyer–salesperson relationship, consequently influencing a buyer’s decision to end a supply relationship.
Research limitations/implications
Empirically, these findings indicate that the effects of selling orientation on conflict, salesperson-owned loyalty and exit intentions are not only based on the salesperson’s efforts but are conditional on the selling firm’s go-to-market strategy, particularly with the implementation of multiple salespeople selling to a particular industrial buyer.
Practical implications
These results suggest that a salesforce go-to-market strategy conveys serious consequences on buying decisions. Given that a go-to-market strategy involving multiple salespeople impacts the buyer’s relationship with the selling firm to a greater degree, managerial oversight must remain present when selling firms decide to pursue such a go-to-market strategy.
Originality/value
The empirical investigation of a salesforce go-to-market strategy is an original pursuit. Specifically, this study shows that while it is critical that buying and selling firms monitor buyer–salesperson relationships as the basis for supply partnerships, these exchanges are largely contingent on the selling firm’s go-to-market strategy.
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G.J. Davies and R. Gray
The place of the international physical distribution function (or shipping function as it is conventionally called in the United Kingdom) has been largely neglected in the area of…
Abstract
The place of the international physical distribution function (or shipping function as it is conventionally called in the United Kingdom) has been largely neglected in the area of logistics or physical distribution studies. This neglect, in particular of the export shipping function, is surprising in a country such as the United Kingdom which is so dependent upon international trade. The export shipping function cannot be regarded as merely an extension of the domestic physical distribution function. In many instances it has separate personnel who undertake a range of functions which may, individually, be just as closely associated with finance and accounting as with physical distribution. The separate tradition of the export shipping function means that it may not be conveniently accommodated into a logistics framework which attempts to integrate the domestic and international movement of goods.
In the UK the last decade has been a period in which the supply offreight transport services has generally exceeded demand, while both thecharacteristics of the transport…
Abstract
In the UK the last decade has been a period in which the supply of freight transport services has generally exceeded demand, while both the characteristics of the transport managers, who are the industry′s customers, and organizational variables, which affect their behaviour, have changed. Examines how these changes have altered the duration of relationships with hauliers, the factors which determine haulier selection and the relative importance of the different aspects of service provided by hauliers. Shows that, although buyers value long‐term relationships, they are more active in the market than they were, dropping many and taking on new hauliers where appropriate. While service remains the most important selection determinant, price has become a factor of major importance. Furthermore, the relative importance of the different aspects of service has changed, with “flexibility” and “understanding of problems” ranking above some of the more traditional variables. While buyers perceive themselves as demanding customers, they attempt to manage their relationships with suppliers by creating an atmosphere which emphasizes collaboration. Concludes with recommendations for suppliers and with a discussion of the relevance of the IMP Group′s Interaction Model to the freight transport market.
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Reports on an investigation of the buying behaviour of air freightforwarders and tests the validity of one particular model of buyingbehaviour. The dominant buyclass in freight…
Abstract
Reports on an investigation of the buying behaviour of air freight forwarders and tests the validity of one particular model of buying behaviour. The dominant buyclass in freight forwarding is seen to be a modified rebuy and the model is seen to be appropriate. The significance of service rather than price is again noted as a factor for business exploitation.
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Investigates those aspects of the communication process which relate to the conditions determining the receptiveness of the individual buyer to marketing communicative and the…
Abstract
Investigates those aspects of the communication process which relate to the conditions determining the receptiveness of the individual buyer to marketing communicative and the manner in which he/she searches the market. Examine the factors which stimulate search behaviour and identifies the extent of market search by buyers. Studies the relationship between the reasons for and the extent of search as well as other characteristics such as those of the buyers and their companies.