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Customer confusion in Service-to-Business Markets — Foundations and First Empirical Results

  • Jan Lakotta

Abstract

Service-to-business (S2B) markets are growing consistently and have consequently received increased attention both in research and practice (Wynstra, Axelsson, and van der Valk, 2006; Burdon and Bhalla, 2005). However, as seen in the example of outsourcing solutions, blatant inefficiencies exist in purchase decision-making: 80% of business process outsourcing contracts have to be renegotiated within two years, and 20% of these renegotiated contracts fail (Venables, 2006; Johnson, 2006; Nutt, 1999; Heide and Weiss, 1995, p.30). How can the high failure-rate in the purchases of business-to-business (B2B) services be explained? With this paper we intend to contribute to a more realistic picture of managerial decision-making by introducing the construct customer confusion and its role in the industrial purchasing process. The construct could be one factor accounting for aforementioned market inefficiencies.

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Copyright information

© Gabler | GWV Fachverlage GmbH, Wiesbaden 2008

Authors and Affiliations

  • Jan Lakotta
    • 1
  1. 1.Lehrstuhl für MarketingESCP-EAP BerlinDeutschland

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