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An exploratory study of the Internet as an industrial
communication tool
Examining buyers’ perceptions
Dawn R. Deeter-Schmelza,*, Karen Norman Kennedyb,1
aMarketing Department, College of Business, Ohio University, 534 Copeland Hall, Athens, OH 45701, USAbDepartment of Management and Marketing, School of Business, University of Alabama at Birmingham, Birmingham, AL 35294, USA
Received 15 May 2000; received in revised form 7 November 2000; accepted 25 February 2001
Abstract
A thorough understanding of the impact of the Internet on industrial purchase decisions is of critical importance for industrial marketers
seeking to incorporate the Internet in their overall communication strategy. Accordingly, this study examines (1) the degree to which
purchasing professionals perceive the Internet as useful, (2) how purchasing professionals are using the Internet for communication activities,
(3) how the Internet compares to other promotional tools in influencing buyers’ purchase decisions, and (4) whether differences among
buyers can be identified relative to the perceived influence of suppliers’ websites. The results provide some practical implications for
industrial marketers regarding the use of the Internet relative to other promotional tools. D 2001 Elsevier Science Inc. All rights reserved.
1. Introduction
An examination of the business press reveals strong
indicators that the Internet is radically changing the com-
munication among those involved in industrial marketing.
Indeed, such predictions as ‘‘[t]he Internet and the growth of
e-commerce are at the heart of the marketing communica-
tions revolution’’ [1] (p. 18) are rarely questioned by
business-to-business marketers [2]. Business leaders, invest-
ors, and marketers are currently focusing attention on the
business-to-business Internet ventures, such as interactive
websites, online supply networks, reverse auctions, and
intranets [3–5]. With this added attention, the possibility
of marketers creating seamless direct communication
between buyers and suppliers becomes a realistic possibility,
even an expectation for business-to-business e-commerce
[4], not conceived when our current research was completed
on the influence of industrial communication tools. As
many companies refocus their communication efforts and
reevaluate their budgeting of promotional dollars, under-
standing the perceptions of purchasing decision makers is
critical to effective allocations in today’s marketplace.
Although radical changes are occurring in the industrial
marketing communications environment, much of the
research in this area was completed before the Internet
became a viable marketing communications tool. Nearly
20 years ago, Parasuraman [6] completed a study pub-
lished in this journal of organizational buyers’ perceptions
of various industrial communication tools. Other research-
ers have collaborated and extended these findings to
include variances based on the product considered [7],
stage of the purchase process [8–10], and characteristics of
the purchase situation [11]. Interestingly, in reviewing the
current research on business-to-business communication
tools, we found no empirical study since the advent of
e-commerce that has examined the influence of the Inter-
net. Thus, it is the purpose of this research to investigate
the relative importance of the Internet as an industrial
communication tool. More specifically, we seek to answer
the following questions:
1. What are the perceptions of purchasing professionals
regarding the usefulness of the Internet as an
information source?
2. How are purchasing professionals using the Internet
for communication activities?
0019-8501/02/$ – see front matter D 2001 Elsevier Science Inc. All rights reserved.
PII: S0019 -8501 (01 )00178 -X
* Corresponding author. Tel.: +1-740-597-1818; fax: +1-740-593-
9342.
E-mail addresses: [email protected] (D.R. Deeter-Schmelz),
[email protected] (K.N. Kennedy).1 Tel.: + 1-205-934-8840; fax: + 1-205-934-0058.
Industrial Marketing Management 31 (2002) 145–154
3. To what extent does the Internet influence organiza-
tional buyers’ purchase decisions, and how does it
compare to other promotional tools and organiza-
tional factors?
4. Can differences among buyers be identified relevant
to the perceived degree of influence of suppliers’
websites?
In Section 2, we briefly review the literature on com-
munication and industrial marketing especially as it relates
to the influence of various promotional tools. In Section 3,
we describe two studies investigating perceptions of organ-
izational buyers and the communication elements influ-
encing their decision-making. The first study focuses on
buyers within a single industry and the second includes a
broad range of purchasing agents from a cross section of
industries. We discuss our findings contrasting them with
previous research as appropriate. Finally, we conclude with
Section 6.
2. Organizational communication research
It is widely accepted that industrial buyers utilize a mix
of information sources during the purchase decision pro-
cess, and that the information sources used can affect both
process and outcomes (cf. Refs. [7,10–12]). Indeed, more
than 25 years of research exist to support this claim. In an
early study, for example, Dempsey [13] found that buyers
in the electric utilities industry tended to use different
sources to evaluate different vendor attributes, with vendor
selection depending, in part, on the information sources
used. In more recent research, information sources have
been found to impact the length of time a firm takes in
making major purchase decisions [14]. When the purchase
process is perceived to be risky and uncertain, buyers often
seek more purchasing-related information sources [15].
Given the impact of information sources on the purchase
decision process, it is critical that business marketers
understand which information sources are most influential
and actively sought so that effective promotional strategies
can be developed.
Several studies have addressed this issue directly. As
supported by conventional wisdom, some research suggests
that salespeople are the most important source of informa-
tion for industrial buyers in the average purchase situation
[7,11,16], although other sources certainly have been iden-
tified. Personal sources, such as site visits, internal organ-
ization networks [8,17], and colleagues [18], have been
found to be very influential. Indeed, Moriarty and Spekman
[10] investigated 14 information sources and found that 6 of
the top 7 were personal sources, such as internal coworkers,
salespeople, product users, and colleagues in other compa-
nies. Other studies have identified technical literature, trade
shows, and conferences as important information sources
[6,7,16,19]. Surprisingly, Patti [20] discovered that buyers
in the capital equipment industry considered advertising to
be as an important a source as salespeople for obtaining
product and service information. Parasuraman [6] was an
early researcher investigating the relative influence of com-
munication tools on organizational buyers’ decision pro-
cesses and offering guidance to marketing managers in
planning the mix of elements.
In reviewing the industrial information source literature,
Moriarty and Spekman [10] developed a ‘‘taxonomy of
information sources’’ along two dimensions: personal/
impersonal and commercial/noncommercial. As shown in
Table 1, personal commercial sources include salespeople
and trade shows, whereas impersonal commercial sources
include such things as advertising and direct-mail brochures.
Personal noncommercial sources vary widely, and can range
from internal and external colleagues to personal experi-
ence. Impersonal commercial sources include news articles
and information from trade associations [10]. A review of
the Moriarty and Spekman taxonomy quickly reveals some
of the major differences between the Internet and traditional
elements of the marketing communication mix. As one
important difference, the Internet could easily fit into all
four cells as the examples on Table 1 illustrate.
One of the first formal analyses of the Internet compared
both traditional and online communication methods, dem-
onstrating the flexible, global, and efficient nature of the
Internet. In this study, Hoffman and Novak [21] describe
how components of the Internet traverse the dimensions of
their typology, specifically how the Internet can be both a
personal and impersonal as well as a dynamic and static
communication medium. In addition, various communica-
tion methods, both traditional and the Internet, were ana-
lyzed along the following dimensions: symmetry of
information flow, media content, diversity of information
sources, communication timing, and personal interactivity.
Primarily, the Internet as a communication tool was shown
to be much more versatile when considering these dimen-
sions than the traditional tools used by marketers [21,22].
Table 1
Taxonomy of information sources used by industrial buyersa
Personal Impersonal
Commercial Salespeople Advertising in trade publications
Trade shows Sales literature
Interactional website Direct-mail brochures
E-mail Informational website
Mass E-mail (spams)
Noncommercial Personal experience News publications
Top management Trade associations
Users Rating services
Outside consultants Internet newsletters
Colleagues List serves
Purchasing department Bulletin board
Chat rooms
a Adapted from Moriarty and Spekman [10] (p. 140). Internet examples
added in boldface-italics.
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154146
As the Internet has continued to evolve in the years since
the Hoffman and Novak [21] initial study, the business press
has examined many aspects of the Internet and its impact on
business-to-business marketing, evidenced by the regular
‘‘special’’ reports in the major trade publications, such as
Wall Street Journal, Business Week, and Fortune. In addi-
tion, academic researchers have begun to investigate more
thoroughly the role of the Internet in marketing activities
(cf. Refs. [23–25]). Yet, data are sparse and much uncer-
tainty remains for industrial marketers as the traditional
tools of communication are considered in conjunction with
the world of Internet communications when designing the
promotional campaign and allocating promotional dollars.
A thorough understanding of the impact of the Internet
on industrial purchase decisions is of critical importance for
organizations seeking to incorporate the Internet in their
overall communication strategy. Developing effective web
strategies requires knowledge of the usefulness of the
Internet as an information source for industrial buyers, as
well as knowledge of how buyers are using it for commun-
ication activities. An understanding of the relative impact of
the Internet, as compared to other promotional tools, on
purchasing decisions can assist industrial marketers in
effectively allocating promotional dollars [6]. Identification
of differences among buyers relative to the impact of the
Internet could lead to more effectively targeted promotional
strategies. The research described subsequently addresses
each of these issues in detail.
3. Description of research activity
Our research consisted of two studies that represent
different methods and perspectives. Both studies involve a
national sampling of organizational buyers who report their
reliance on various communication tools involved in busi-
ness-to-business marketing. Our intent in analyzing two sets
of data was to broaden the focus of professional buyers’
information search and to understand better the roles of
various communication tools currently available to indus-
trial marketers.
3.1. Study 1
Study 1 sought to investigate organizational buyers’
general expectations and use of information sources, includ-
ing the Internet, within one industry. By investigating one
industry, we examined Internet usage and perceptions with-
out the expected variances mandated by different traditions
and norms that are evident across industries. Data were
collected using telephone interviews with meeting and trade
show planners randomly selected from a national listing of
1392 professional meeting planners. By using telephone
interviews, we were able to sequence our questions so that
both aided and unaided recall could be evaluated and
additional insights probed for as appropriate. Four hundred
usable interviews were completed, for an effective response
rate of 28.7%. Respondents were primarily female (72%),
and classified themselves as either association planners
(65.8%), corporate planners (30.5%), or miscellaneous type
planners (3.8%). The majority of respondents planned
between one and five meetings per year (76.1%).
3.2. Study 2
To explore the influence of the Internet on purchase
decisions and identify the characteristics of organizational
buyers more likely to be influenced by the Internet as a
communication tool, a second study was undertaken. Study
2 focused on gathering data across industries as a means to
increase the generalizability of findings. Respondents were a
randomly selected list of 1000 purchasing agents who were
members of a national purchasing organization. To encour-
age a favorable response, the initial mailing was followed by
a reminder postcard exactly 1 week later. A 23.2% response
rate was obtained, with 232 purchasing professionals com-
pleting and returning the questionnaire. Respondents were
primarily male (66.7%) with at least some college (95.9%)
and an average age of 43. Most respondents held the title of
materials or purchasing manager (34.3%) or purchasing
agent (26.1%) and worked for relatively large companies
earning more than US$100 million annually (55.1%). Years
of purchasing experience ranged from 1 to 40, with an
average of 14 years. Similar results were found for years at
current employer, with a range from 1 to 39 and average of
just under 10 years. Of the 232 purchasing professionals
responding, 77.5% reported at least some experience in
using the Internet for corporate-related purchasing activities.
Eighty-nine respondents provided industry background
information; the majority of these respondents were
involved in manufacturing (51.7%), services (14.6%), con-
struction (9%), or wholesale trade (7.8%). Other industries
represented by the sample include mining, transportation,
finance/insurance, and public administration.
To assess nonresponse bias, the data were divided into
quartiles based on the timeliness with which questionnaires
were returned to the authors. The first quartile was com-
posed of responses received earliest and the fourth quartile
comprised the latest responses. No significant differences in
the study variables and the demographic profiles of respond-
ents were indicated in the t tests [26]. Based on this
evidence, we concluded that the data contained no major
problems with respect to nonresponse bias.
4. Findings
The findings are structured around our four research
questions, across studies. Specifically, we address (1) the
usefulness of the Internet as an information source, (2)
the ways in which purchasing professionals are utilizing
the Internet, (3) the relative influence of the Internet on
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154 147
buyers’ purchase decisions as compared to other pro-
motional tools, and (4) whether differences among buyers
can be identified.
4.1. Internet usefulness
To examine the usefulness of the Internet in organiza-
tional purchase decisions, respondents in Study 1 were
asked, under conditions of unaided recall, to identify the
information sources they found most useful when planning
meetings. Each respondent was permitted to provide up to
five responses. Subsequently, respondents were asked to
rate the usefulness of information sources when aided by the
interviewer. Each information source was rated on a five-
point scale ranging from not useful at all (1) to extremely
useful (5). The results can be seen in Table 2. Interestingly,
the Internet was the second most named source under the
unaided recall condition, followed closely by advertising in
trade journals. The most frequently mentioned source was
third-party location information, such as convention and
visitors bureau resources.
Under conditions of aided recall, the Internet was rated
moderately useful, receiving a 3.2 average rating of useful-
ness on a five-point scale. Personal experience (x̄ = 4.47) and
third-party location information (x̄ = 4.44) were rated as the
most useful sources of information, a finding consistent with
buyers’ behavior in other service purchases where judging
the quality of the product is difficult prior to purchase, and
the reliance on one’s own experience as well as trusted
others is quite common [27]. Also rated very useful by
respondents in this study were word of mouth from col-
leagues (x̄ = 4.10) and direct-mail brochures (x̄ = 3.87).
Attendance at trade shows (x̄ = 3.36) ranked just above the
Internet. Interestingly, personal sales calls (x̄ = 2.95), often
identified as the top promotional source in previous research
[7,11,16], ranked significantly below the Internet as well as
articles in trade journals. Direct-mail promotional items
(x̄ = 2.73) and newsletters from meeting facilities (x̄ = 2.66)
were least useful to the buyers in this study.
4.2. Internet utilization
To investigate how purchasing professionals are utilizing
the Internet for corporate-related purchasing activities,
respondents were asked, under conditions of unaided recall,
how they were currently using the Internet in their job. Up to
three responses per respondent were allowed. The results can
be seen in part A of Table 3. Accessing information regard-
ing related services was by far the most frequently mentioned
use, followed by accessing product specifications. To a lesser
extent, e-mail, e-mail lists/groups, and accessing names and
addresses for contacts were also reported as ways in which
the Internet is used by these respondents.
Respondents in Study 2 were asked a similar question.
Specifically, these respondents were asked to rate the
frequency with which they use the Internet for the corpor-
ate purchasing-related activities shown in Part B of Table
3. Each activity was scored on a five-point scale ranging
from never (1) to always (5). As shown, the most
frequently used activity reported by these respondents is
e-mail (x̄ = 3.96), followed by five information-related
activities: gathering product information (x̄ = 3.28), search-
ing for new suppliers (x̄ = 3.24), gathering information
regarding current suppliers (x̄ = 2.94), providing informa-
tion to suppliers (x̄ = 2.61), and gathering competitive
information (x̄= 2.56), although the last two seem to occur
with only moderate frequency. Online ordering and order
status checks also are utilized with moderate frequency,
judging by their mean scores of 2.45 and 2.47, respect-
Table 2
Internet usefulness (Study 1)
(A) Unaided recall of useful sources of information
Rank Source of information
Number
of responses
Percentage of
respondentsa
1 Third-party location information
(e.g., convention and
visitors bureau resources)
192 50.1
2 The Internet, websites 81 21.1
3 Advertising in trade
journals/magazines
78 20.4
4 Colleagues experience/word
of mouth
64 16.7
5 Personal experience/travel
to meeting sites
55 14.4
6 Direct-mail brochures 52 13.6
7 Personal sales calls 13 3.4
8 Trade associations 12 3.1
9 Direct-mail promotional items 12 3.1
10 Attendance at trade shows 11 2.9
11 Articles in trade
journals/magazines
10 2.9
12 Others 54 11.2
(B) Ratings of the usefulness of information sources — aided recall
Source of information
Mean rating
of usefulnessb
Personal experience/travel
to meeting sites
4.47
Third-party location information
(e.g., convention and
visitors bureau resources)
4.44c
Colleagues experience/word of mouth 4.10c
Direct-mail brochures 3.87c
Attendance at trade shows 3.36
The Internet 3.21
Articles in trade journals/magazines 3.20c
Personal sales calls 2.95c
Advertising in trade journals/magazines 2.80
Direct-mail promotional items 2.73
Newsletters from meeting facilities 2.66
a Up to five responses allowed per respondent.b Sources rated on a five-point scale ranging from not useful at all (1)
to extremely useful (5).c Mean score was significantly greater than the mean score listed
immediately below it, based on a t test for related samples ( P < .01).
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154148
ively, with accessing supplier documents (x̄ = 2.37), gath-
ering external customer information (x̄ = 2.32), online cus-
tomer support (x̄ = 2.29), and electronic data interchange
(x̄ = 2.21) occurring with somewhat less frequency. The
least used options include more sophisticated activities,
such as conducting reverse auctions (an online bidding
process, x̄ = 1.18), online payments (x̄ = 1.41), just-in-time
inventory planning (x̄ = 1.51), and discussion groups with
other customers (x̄ = 1.55).
4.3. Influence of Internet
To gain insight regarding the extent of the Internet’s
influence on organizational buyers’ purchase decisions, and
how that influence compares to other promotional tools and
organizational factors, an earlier study by Parasuraman [6]
was replicated. In the original study, conducted almost 20
years ago, Parasuraman sought to understand the relative
influence of various promotional tools and organizational
factors on purchasing decisions, as perceived by purchasing
decision makers. Similar to our study, Parasuraman
sampled 1000 firms across industries, receiving responses
from 267 purchasing professionals. Respondents ranked six
factors in order of influence on their purchase decisions:
internal specifications, supplier sales calls, colleagues’
recommendations, supplier exhibits at trade shows, direct-
mail promotional materials, and advertisements in trade
journals. Each of the factors was rated on a five-point
scale, ranging from no extent (1) to very large extent (5).
Factors were then rank-ordered based on mean influence
scores, with t tests performed to discover if the mean
influence score of each factor was significantly greater
than that of the immediately following factor. His results
clearly showed that the most dominant influences came
from other departments within the firm through specifica-
tions laid down in purchasing requirements, followed by
personal selling and peer recommendations (no significant
difference between the two), trade shows, direct mail, and
print advertisements [6].
We replicated the Parasuraman study [6] exactly, with
the exception of adding a seventh factor: suppliers’ web-
sites. The results, along with Parasuraman’s original results,
are shown in Table 4. Interestingly, the results of the
present study almost mirror the results attained by Para-
suraman two decades ago. Specifications laid down by
purchasing requirements by far had the most influence on
purchasing decisions, followed by recommendations by
colleagues, sales calls from suppliers, trade shows, suppli-
ers’ websites, direct-mail promotional materials, and print
advertisements in trade journals. As with the Parasuraman
study, the only nonsignificant differences found between
mean scores were with recommendations by colleagues and
Table 4
Determinants of purchasing decisions — replication of Parasuraman (1981)
Factors influencing product
purchase decisions (Study 2)
Mean
influence
scoreaMean influence scorea
(Parasuraman study)
Specifications laid down in
purchase requisitions
3.86b 3.84
Recommendations made by
colleagues in other organizations
3.12 3.04
Sales calls made by
suppliers’ salespeople
3.10b 3.10
Trade shows 2.94b 2.47
Suppliers’ websites 2.79b n.a.
Promotional materials mailed
by suppliers
2.41b 2.20
Suppliers’ advertisements in
trade journals
2.29 2.10
a Mean influence scores refer to the average response on a five-point
scale, where 1 = no extent and 5 = very large extent.b Mean influence score was significantly greater than the mean
influence score listed immediately below it, based on a t test for related
samples ( P< .05).
Table 3
Internet utilization
(A) Use of the Internet (Study 1 — unaided recall)
Purpose of Internet use
Number
of responses
Percentage
of respondentsa
Access information regarding
related services
265 87.2
Access product specifications 163 53.6
E-mail 38 12.5
E-mail lists/groups 12 3.9
Names and addresses for contacts 11 3.6
Other 52 17.1
(B) Use of the Internet (Study 2 — aided recall)
Purpose of Internet use Mean scoreb S.D.
E-mail 3.96c 1.11
Gathering product/component information 3.28 1.03
Searching for new suppliers 3.24c 0.97
Gathering information regarding
current suppliers
2.94c 1.09
Providing information to suppliers
(specs, order policies, etc.)
2.61 1.13
Gathering competitive information
for your company
2.56 1.26
Online ordering 2.47 1.20
Online order status checks 2.45 1.17
Accessing supplier documents
(blueprints, layouts, specs, etc.)
2.37 1.25
Gathering external customer information
for your company
2.32 1.23
Online customer support 2.29 1.09
Electronic data interchange 2.21c 1.26
Discussion groups with other customers 1.55 1.02
Just-in-time inventory planning 1.51 1.05
Online payments 1.41c 0.80
Conducting reverse auctions 1.18 0.59
a Up to three responses allowed per respondent.b Sources rated on a five-point scale ranging from never (1) to always (5).c Mean score was significantly greater than the mean score listed
immediately below it, based on a t test for related samples ( P< .001).
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154 149
suppliers’ sales calls. The influence of suppliers’ websites
was much less than anticipated, given the predictions being
made by the business press [1,2]. In terms of influence,
suppliers’ websites ranked fifth out of the seven factors,
behind trade shows. The mean score of 2.79 for this factor
suggests that, on average, it is perceived as influencing
purchasing decisions just below a ‘‘moderate extent’’
(which represents a scale value of 3 on the five-point scale
used). It is worth noting that three of the four factors
ranking more highly than suppliers’ websites also fall into
the ‘‘moderate influence’’ range (i.e., recommendations
made by colleagues in other departments, sales calls made
by suppliers’ salespeople, and trade shows). Only specifi-
cations laid down in purchasing requisitions are seen as
influencing purchasing decisions a ‘‘considerable extent’’
(4 on the five-point scale used).
4.4. Identifying differences among buyers
The final goal of this investigation is to investigate
potential differences among buyers relative to the extent to
which they are influenced by suppliers’ websites during the
purchase decision process. The identification of such differ-
ences can lead to the development of buyer profiles, which
in turn can be useful to practitioners seeking to make more
efficient use of their websites and target industrial buyers
more effectively. Several steps were taken in Study 2 to
fulfill this goal. First, a correlation matrix was generated to
see if the level of influence was related to demographic
variables: age, gender, educational background, years of
purchasing experience, and annual corporate sales revenue.
In addition, the relationships between the influence of
suppliers’ websites and four usage-related variables were
investigated. Individual adoption behavior reflects the
length of time the buyer has been using the Internet for
corporate purchasing-related activities. Respondents were
asked to select one of six time-related categories, e.g., ‘‘I am
not currently using the Internet for corporate purchasing
activities,’’ ‘‘Less than 6 months,’’ ‘‘At least 6 months to 1
year,’’ etc. Perceived Internet skill was measured as the
extent to which buyers feel they are skilled at using the
Internet and are knowledgeable about good search techni-
ques [28]. Perceived Internet convenience was measured as
the extent to which purchasing professionals prefer the
Internet to supplier representatives as a source of informa-
tion because it makes the purchasing job easier. Finally,
supplier support reflects the degree to which purchasing
professionals perceive their suppliers are providing encour-
agement, guidance, and incentives for purchasing via the
Internet. (See Appendix A for measures.)
The correlation results can be seen in Table 5. None of
the demographic variables were related to the perceived
influence level of suppliers’ websites. Although gender had
a marginal impact (r =� .117, P=.078), suggesting a minor
difference between men and women, the relationship
was not strong enough to consider for further analysis.
Alternatively, each of the four usage-related variables was
significantly and positively correlated with the influence of
suppliers’ websites. The strongest relationship occurred with
perceived skill with Internet (r= .38, P= .000), followed
closely by individual adoption behavior (r= .35, P= .000),
perceived Internet convenience (r=.32, P= .000), and sup-
plier support (r= .27, P= .000). Accordingly, these four
variables were included in the subsequent analysis.
Second, the data were analyzed using MANOVA. To
facilitate this analysis, respondents were divided into three
subgroups based on their perception of the level of influence
of suppliers’ websites. Respondents who scored 1 or 2 were
categorized as low influence (n = 90). Respondents scoring a
4 or 5 were categorized as high influence (n = 58). Those
respondents who scored 3 were categorized as medium
influence and, for the purposes of the MANOVA analysis,
removed from consideration (n = 84).
The MANOVA analysis was conducted to assess if
differences exist between the two groups of purchasing
professionals based on their opinions concerning the four
variables. Prior to the analysis of these four variables,
assumptions of multivariate normality and equal variances
were checked and satisfied. The MANOVA omnibus test
was used to investigate the overall assumption of differences
between the two groups on all dependent variables [29]. The
MANOVA results displayed in part A of Table 6 reveal
overall statistically significant differences between the two
groups of buyers (P= .000).
To determine exactly which variables showed significant
differences, univariate F tests were generated (see Table 6,
Part B). The univariate F test considers each dependent
variable separately, thereby allowing the researcher to pin-
point the source of the differences [29]. The results indicate
that each of the four variables was significantly different
between the two test groups of purchasing professionals
(P< .000). Purchasing professionals more highly influenced
by suppliers’ websites were found to score significantly
higher on individual adoption behavior, perceived Internet
skill, perceived Internet convenience, and supplier support.
As shown by the adjusted R2 values, the most explanatory
power was associated with perceived Internet skill (adjusted
Table 5
Correlations between influence of suppliers’ websites and individual/
organizational characteristics (Study 2)
Influence of suppliers’ websites
Variables r P
Age � .074 .294
Gender � .117 .078
Educational background .093 .169
Years of purchasing experience � .052 .446
Annual corporate sales revenue .052 .460
Individual adoption behavior .354 .000
Perceived Internet skill .383 .000
Perceived Internet convenience .320 .000
Supplier support .270 .000
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154150
R2=.17), followed by perceived Internet convenience
(adjusted R2=.14), supplier support (adjusted R2=.12), and
individual adoption behavior (adjusted R2=.10).
5. Discussion and implications
With the growing emphasis on the Internet as an indus-
trial communication tool, it is critical to understand the
impact of the Internet on industrial purchase decisions. In
this new and challenging arena of research and application,
this study takes the first step in understanding the role of the
Internet in industrial promotional strategies.
The results of this study offer several key implications
for industrial marketers. Our first research question
addressed the usefulness of the Internet. When asked under
unaided recall conditions to name the most useful informa-
tion sources, buyers mentioned the Internet second behind
third-party location information. When asked to rate the
usefulness on a one-to-five scale, the buyers in Study 1
found the Internet to be moderately useful. Consistent with
previous research (e.g., Refs. [10,18]), personal experience
and third-party sources were rated extremely useful, with
word-of-mouth communication rated moderately useful.
Direct-mail brochures were also rated very useful, with
attendance at trade shows and articles in trade journals rated
as useful as the Internet. Less useful sources included
personal sales calls, trade journal advertising, direct-mail
promotional items, and newsletters.
In reviewing the sources of information respondents
considered most useful, buyers seem to prefer the sources
that allow them greater control over access to information.
Only one of the top five sources, facilities’ brochures, is
under the direct control of the marketer for a meeting site,
the most salient and significant purchase buyers in this
industry make. Buyers rated personal experience and
third-party location information as significantly more useful
than any other sources, possibly because these sources offer
informational value without an added ‘‘sales pitch.’’
Although marketers do have control over the content of
their own websites, the buyer decides when and how these
web pages will be accessed. This experience is similar to the
control professionals have in sharing information with
colleagues and attendees have at a trade show. Certainly,
the marketer for an industry exhibiting these characteristics
must be sensitive to the apparent preference of buyers to
have control over access to information.
It is worth noting that respondents named an average of
1.7 sources of useful information under conditions of
unaided recall, even though they were probed for up to five
responses. As these buyers indicate, they are using only a
few primary sources in their information search and decision
making. This highlights the need for industrial marketers to
understand the importance buyers place on the various
communication elements, including the Internet, as they
plan their promotions. With a narrow selection of informa-
tion sources considered useful by buyers in an industry,
marketers must understand their buyer’s preferences and
target the media carefully.
Our findings regarding the utilization of the Internet
highlight its usefulness for gathering and sharing informa-
tion. To some extent, these findings signify the importance
of the Internet as a communication tool. Regarding sharing
information, e-mail seems to play a critical role in online
corporate-related purchasing activities. Respondents in
Study 2 cited e-mail as the most frequently used online
option, and respondents in Study 1 cited their use of e-mail
under conditions of unaided recall. Given that purchasing
professionals are already utilizing e-mail, suppliers might
consider an ‘‘in-touch’’ strategy, using the Internet to man-
age customer relationships electronically. When used prop-
erly, such a strategy offers several advantages, including
responding quickly to customer questions and building
customer loyalty [30].
A review of the Internet utilization results across sam-
ples (Table 3) suggests that accessing information increases
the usefulness of the Internet for organizational buyers.
The purchasing professionals in our samples used the
Internet to access product specifications along with current
and new supplier information. To encourage website use
and perhaps build customer loyalty [31], suppliers should
make it easy for targeted buyers to access these types of
information on their site. Website design and performance
are crucial dimensions that must be considered [24]. If the
user cannot interact with the site easily and effectively, the
buyer may not return. In addition, because the probability
that a buyer will come across an unknown site is low, site
promotion is critical. Interested practitioners are encour-
aged to review Evans and King’s [24] article that examines
the opportunities and obstacles inherent in business-
to-business websites and includes a useful website assess-
ment tool.
Table 6
MANOVA results (Study 2)
(A) Omnibus test for differences among buyers’ perceived degree of
influence of suppliers’ websites
Test name Value Exact F P
Pillai’s trace .29 13.33 .000
Wilks’ l .72 13.33 .000
Hotelling’s trace .40 13.33 .000
Roy’s largest root .40 13.33 .000
(B) Main effects: differences among buyers’ perceived degree of influence
of suppliers’ websites
Dependent variable
Low
influence
mean
High
influence
mean F P
Adjusted
R2
Internet experience 2.65 3.75 16.41 .000 .10
Perceived Internet skill 12.58 15.88 30.02 .000 .17
Perceived Internet
convenience
11.70 14.05 22.96 .000 .14
Supplier support 7.12 9.21 19.92 .000 .12
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154 151
The buyers in our study indicated that they use the
Internet to gather competitive information with moderate
frequency. This finding is not necessarily surprising, as the
acquisition of information about competitors and the com-
petitive environment is central to strategy development [32].
Moreover, competitive information is the type of archival
information that is increasingly available on the Internet
[33]. This issue represents both an opportunity and a threat
to organizations. In terms of opportunity, the Internet is a
useful and efficient means for gathering competitive
information [34], although its strength is as a complement-
ary resource rather than a replacement for traditional
resources [35]. On the other hand, purchasing organizations
are likely not the only companies perusing a given suppli-
er’s website. Suppliers should consider the sensitivity of the
information they are posting on their website. For sensitive
information that needs to be available for buyers, password-
protected sites offer a viable alternative.
Our data show that online ordering and order status
checks also were used with moderate frequency. Yet, the
frequency with which this option is utilized will likely
increase over time. Indeed, the results of a study by Carter
et al. [36] argue that e-commerce is the number one issue
facing purchasing and supply executives, and that the
Internet will be the backbone of electronic purchasing by
2008. As reported by Wall Street Journal, Forrester
Research predicts that business-to-business online sales will
approach US$2.7 trillion in 2004, from an expected
US$406.2 billion this year [3]. These predictions, when
combined with a multitude of others (e.g., Refs. [1,2]),
argue that suppliers should consider and be prepared for
the impact of online purchasing in their industry.
Our replication of the Parasuraman study [6] provided
interesting, and somewhat surprising, results. Perhaps most
amazing was the fact that in more than 20 years, and
during the course of what has been called a marketing
communications revolution [1], we found no significant
differences between the two studies. The ordering of the
promotional and organizational factors influencing pur-
chase decisions was almost identical across the two studies.
In both cases, specifications laid down by purchase requi-
sitions was the most influential factor. Although the second
most influential factor switched from suppliers’ salespeople
in the Parasuraman study to recommendations made by
colleagues in other organizations in our study, the differ-
ence between the two was not significant. The remaining
factors stayed in the same order as those in the Parasura-
man study, other than our finding that the Internet is
significantly more influential than direct-mail promotional
materials from suppliers.
These findings contend that the Internet is not as influ-
ential as more traditional communication tools, at least at
the present time. Consequently, suppliers should not aban-
don more traditional promotional methods. Personal selling
is still the most effective promotional tool for influencing
purchasing decisions, followed closely by trade shows.
Even in the age of the Internet, buyers appear to value
personal interaction and find ‘‘direct experience’’ informa-
tion sources most credible.
Still, given the potential of the Internet to cut purchasing
costs by as much as 20% [37], it is to suppliers’ advantage
to increase Internet use among industrial buyers. Perhaps
suppliers can use these more traditional promotional meth-
ods to attain this goal. Salespeople can provide buyers with
hands-on training for using the supplier’s website. Trade
shows can be used to highlight the new web options and
educate both users and nonusers of the benefits. Even direct
mail and advertisements in trade journals could be used to
inform current customers and prospects about the availabil-
ity and usability of the website. Such site promotion is
critical for buyers to find, understand, and use suppliers’
websites effectively [24].
Finally, the results relevant to our final research ques-
tion provide a profile of those buyers who are most
influenced by suppliers’ websites versus those buyers that
report little influence. A relationship between demographic
variables and the influence of suppliers’ websites did not
exist in our data. This includes individual demographic
variables (i.e., age, gender, educational background, and
years of purchasing experience) as well as size of organ-
ization (measured as annual corporate sales revenue).
Interestingly, these findings are similar to research results
obtained by Bellman et al. [38], who found that demo-
graphics were not predictive of online shopping habits in
the consumer marketplace. Thus, at this point, we do not
have a clear demographic picture of the business-to-
business Internet user.
Alternatively, the usage-related variables explored in
this study did provide some indication of buyers’ profiles
in terms of experience and perceived skill. Buyers who
perceived more influence from suppliers’ websites had
been using the Internet longer, perceived themselves as
having greater skill in using the Internet, felt that the
Internet was a convenient information source that made
their job easier, and perceived greater supplier support in
terms of encouragement, guidance, and incentives. These
findings have several implications for practitioners. First,
the influence of supplier websites increases as experience
in using the Internet increases. As more buyers become
comfortable with the Internet and gain experience with
using it, they are more likely to turn to supplier websites
for information. Of course, training and other supplier
support mechanisms can perhaps increase the individual
adoption rate of buyers and their perceived skill in using
the Internet. In addition, such supplier support can increase
the influential power of suppliers’ websites directly. As
previously suggested, salespeople can be used to educate
buyers on the usefulness of the website and train them to
use it effectively. Likewise, salespeople and other pro-
motional tools can be used to extol the communication
benefits of using the Internet for corporate-related purchas-
ing activities. Monetary incentives, e.g., purchase order
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154152
discounts for online ordering, could improve participation.
Practitioners are encouraged to consider these and other
support mechanisms as feasible.
6. Directions for future research
The results of this study enhance our understanding of
the role of the Internet in industrial promotional strategies.
However, a multitude of related issues are worthy of
investigation as a means to assist industrial marketers in
Internet strategy development and implementation. First,
researchers might investigate how users differ from non-
users in the industrial environment. Although our study
found no evidence of demographic differences among users,
it is possible that industry, experience, education, and/or
behavior characteristic differences may exist between users
and nonusers. Knowledge of these differences could assist
in targeting efforts. Second, as a means to assist practi-
tioners in site development, researchers might examine
buyers’ preferences for the various types of content avail-
able on the Internet.
Online purchasing represents another fruitful area for
future research. For example, previous research contends
that the importance of any given information source may
vary by the product, the stage in the purchase process, and
the characteristics of the buying situation [7–11]. Such
findings might also hold true for the Internet. Wall Street
Journal predicts that online purchasing will have the
greatest impact on such products as office supplies and
electronic components [3]. One can imagine that the
Internet might be more useful during the prepurchase
information search stage. Likewise, buyers might be more
likely to engage in online purchasing under conditions of
straight rebuy. Understanding how organizational buyers’
use of the Internet changes across categories is critical to
suppliers developing and implementing online purchasing
systems. Additional research is needed to answer these
important questions.
Practitioners implementing online purchasing systems
would also benefit from an understanding of buyers’
expectations, fears, and predictions as the use of the
Internet moves from a source of information to a transac-
tional tool. It might be useful, for example, to compare
buyers’ expectations of online purchasing with those of
salespeople, and to understand how buyers and sellers are
preparing for e-commerce. The effectiveness of reverse
auctions, a relatively new phenomenon dealing with online
bidding by buyers and sellers, might be investigated from
both the buyers’ and sellers’ points of view. Researchers
might examine, for instance, the impact of online bidding
on long-term buyer–seller relationships. Ultimately, as the
use of the Internet becomes more prevalent in industrial
situations, researchers should reexamine the organizational
buying model to determine the nature of any changes that
might occur.
Variable Measure Factor
loadings
Cronbach’s
aIndividual adoption
behavior
Indicate if you are using the Internet for corporate purchasing-related
activities, and if so, how long? n.a. n.a.
Perceived Internet
skillaI am extremely skilled at using the Internet. .90 .90
(four items)
I consider myself knowledgeable about good search techniques
on the Internet. .96
I know somewhat less about using the Internet than most users.b .65
I know how to find what I am looking for on the Internet. .81
Perceived Internet
convenience
(four items)
With the Internet, I will be able to reduce the time I spend with
suppliers’ salespeople. .66 .69
Compared to traditional communication sources, I can get my
questions answered more effectively using the Internet. .67
With suppliers who have online services, my job as a purchasing
professional is easier. .65
I prefer speaking directly with my suppliers’ personnel to get help
and information.b .42
Supplier support
(three items)
Most of my suppliers encourage me to use their Internet sites. .64 .71
My suppliers provide effective guidance in the use of their
Internet sites. .66
Many of my suppliers offer incentives for using their Internet
purchasing options. .74a Adapted for the business-to-business context from a scale developed by Novack et al. [28].b Reverse-scored item.
Appendix A. Measures
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154 153
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Dawn R. Deeter-Schmelz (PhD, University of South Florida), Assistant
Professor of Marketing at Ohio University, has published in the Journal of
Marketing Education, Journal of Business Logistics, Journal of Personal
Selling and Sales Management, Journal of Travel Research, among others.
Karen Norman Kennedy (PhD, University of South Florida), Assist-
ant Professor of Marketing at the University of Alabama at Birmingham,
has published in Journal of Marketing Education, Psychological
Reports, Journal of Social Behaviour and Personality, and various
conference proceedings.
D.R. Deeter-Schmelz, K.N. Kennedy / Industrial Marketing Management 31 (2002) 145–154154
