Physical Distribution Service in Industrial Purchase Decisions

• Published in: Journal of marketing Vol. 40; no. 2; pp. 3 - 10
• Main Authors: Perreault, William D., Russ, Frederick A.
• Format: Journal Article
• Language: English
• Published: New York American Marketing Association 01-04-1976; SAGE PUBLICATIONS, INC
• Subjects: Business orders; Consumer behavior; Customer service; Customers; Distribution; Distribution planning; Inventory control; Marketing; Marketing strategies; Physical; Polls & surveys; Purchasing; Purchasing agents; Quality management; Questionnaires; Service; Suppliers
• ISSN: 0022-2429; 1547-7185
• DOI: 10.2307/1251000

A SURVEY OF INDUSTRIAL PURCHASING MANAGERS REVEALS THAT PHYSICAL DISTRIBUTION SERVICE RATES SECOND ONLY TO PRODUCT QUALITY IN INFLUENCING INDUSTRIAL PURCHASE DECISIONS. SOME PURCHASING AGENTS, PROBABLY A RELATIVELY SMALL MINORITY, ARE FAR MORE SENSITIVE TO POOR PHYSICAL DISTRIBUTION SERVICE THAN THE 'INSENSITIVE' OR SILENT MAJORITY. SUPPLIER MANAGEMENT SHOULD IDENTIFY THE DIFFERENT SEGMENTS AND DETERMINE WHETHER IMPROVED SERVICE TO THE SENSITIVE SEGMENT OR REDUCED SERVICE TO THE OTHER SEGMENT WOULD BE PROFITABLE. ELEMENTS OF PHYSICAL DISTRIBUTION SERVICE WHOSE IMPROVEMENT IS MOST LIKELY TO INCREASE CUSTOMER-SATISFACTION HAVE BEEN IDENTIFIED, BUT THEY ARE ALSO THE ELEMENTS FOR WHICH CUSTOMER SATISFACTION IS CURRENTLY LOWEST. IMPROVING THESE ELEMENTS HAS THE GREATEST POTENTIAL FOR IMPROVING PURCHASING AGENTS' SATISFACTION. IT SEEMS THE SUPPLIER SHOULD SURVEY CUSTOMERS TO FIND WHERE IMPROVEMENT IS APPROPRIATE, BUT HE MUST BE CAREFUL NOT TO PROMISE WHAT HE WON'T DO. EXHIBITS.