The effect of source credibility on purchase intentions of organizational buyers

Abstract

The purpose of this study was (1) to determine the effect of salesperson credibility (the presentation effect) on purchase intentions of organizational buyers and (2) to determine what effect background characteristics (for example, age, sex, race, and company size) may have on purchase intentions of organizational buyers. A series of video tapes of selling situations were prepared. The video tapes showed a specific salesman in a selling situation attempting to sell a bulk petroleum system to an organizational buyer. Six video tapes were prepared and after a pilot study, three video tapes depicting high, medium, and low source credibility were shown to a sample of 168 industrial buyers. After each buyer saw one of the three tapes, he or she was asked to complete a three page questionnaire which included a credibility scale. Purchase intentions of the buyers were measured as well as specific demographic items about the buyers and their companies. Factorial designs were developed based upon the independent variable (purchase intentions) and the various background variables. Twenty-nine hypotheses were tested using analysis of variance. Duncan's Multiple Range Tests were used where applicable. Analysis of variance results indicated that salesperson credibility had a highly significant effect on purchase intentions of organizational buyers. Duncan's Multiple Range Test indicated that all levels of salesperson credibility/purchase intentions were significantly different respectively at the Alpha equal .01 level. The study also indicated that only three background variables were significant. These were: (1) race of the buyer, (2) buyers' perceptions of differences in educational levels between buyers and salespersons, and (3) buyers' perceptions of similarity between themselves and salespersons. The interactive effect of salesperson credibility and the number of employees of the buyer's firm was significant. Salesperson credibility and the differences in race between buyers and salesperson was also significant. However, out of the five significant background effects, only buyers' perceptions of similarity should be considered as potentially significant. (The other three effects appeared to gain their significance by small numbers in certain buyer respondent classifications.)