The effects of the phase of the vendor selection process, industry type, and firm size on vendor selection criteria

Abstract

The research investigated vendor selection criteria. Specifically, the importance of various criteria was examined in light of the multi-phasic nature of the vendor selection process as presented in the Vyas and Woodside (1984) models. Additionally, the variation in the importance of criteria was compared across five types of industries and across three size categories of firms. One thousand questionnaires were mailed to purchasing managers in manufacturing, construction, service, wholesale, and retail firms throughout the United States. This mailing along with a follow-up mailing resulted in three hundred, thirty-three usable responses (33.3% response rate). The questionnaires called on the subjects to indicate the importance of thirteen vendor selection criteria at each of the three phases of vendor selection. The thirteen criteria were drawn from the purchasing literatures as well as from an expert panel of professional buyers. The results of the analysis indicated that vendor-related criteria did not decrease in importance as the vendor selection process moves through successive stages. Also, it was found that product-related criteria did not increase in importance as the vendor selection process progresses. In addition to these findings, the results indicated that there is little variation between sizes and types of firms as to the importance they place on individual vendor selection criteria. The research provides the industrial marketer with a more in-depth understanding of vendor selection criteria.