150 The Marketing Book
and White (1974) also suggest three stages
which lead to the final patronage decision;
Dewey (1960) suggests a five-stage framework;
Webster and Wind (1972a) classify four basic
stages. The similarity of the stages suggest
some universal pattern of organizational buy-
ing. Nevertheless, all models assume a discrete
and ordered process which is unrealistic in
practice. Empirical findings have always
shown that stages can occur simultaneously or
out of sequence etc., depending on the partic-
ular buying situation. However, it is useful to
review the principal activity steps which
usually take place in new buy or modified re-
buy purchasing.
Search
Searching for information is a major way of
reducing risk, and the search for alternative
products or suppliers is liable to be most
extensive when risk perception is high. Cyert
and March (1963) suggested that search, like
decision making itself, was problem directed.
They made three basic assumptions about
organizational search. First, that search is moti-
vated by a problem. Second, that search pro-
ceeds on the basis of a simple model of
causality, until driven to a more complex one.
And, third, that the search would be biased by
the searcher’s perceptions of the environment.
The frequency of search is a function of how
well present suppliers and products are meet-
ing organizational goals, and one reason for
frequent search is ‘to keep present suppliers
honest’ by comparing them with alternatives.
The collection of information usually has a
cost, either financial or in terms of effort or time
expended. Buckner (1967) found that suppliers
usually only examine a limited range of suppli-
ers. Limited search can particularly be ascribed
to the cost of information gathering. White
(1969), however, indicated that a major reason
for limiting search was work simplification or
avoidance.
The search process may therefore be
governed in many instances by satisficing
rather than maximizing behaviour, particularly
in purchase situations where risk is not felt
to be high. Organizational search is a con-
tinuous process of data gathering which may
relate specifically to products or generally to
economic trends or markets. Search relating
specifically to purchase situations may occur
simultaneously with other stages in the deci-
sion process as a continuous activity or else as
a series of sequential steps. Webster ’s researchTable 7.1 Percentage of respondents finding each source important by
stage in the buying process
Awareness Interest Evaluation Trial AdoptionSalespeople 84 90 64 70 56
Trade journals 90 38 22 16 8
Buyers in other companies 18 22 28 16 8
Engineers in other companies 26 34 44 20 18
Trade associations 42 24 14 4 8
Trade shows 76 34 16 12 4Adapted from Webster (1965).