Presentations

Poster: Organizational Buying and Innovation Adoption Under Share of Wallet Contracts

Navid Mojir, Harvard University

Poster Session Presentation

B2B markets are typically characterized by organizational buying involving a buying center with multiple stakeholders (e.g., buyers, users) who have different preferences and costs. A common feature of pricing in B2B markets is the “share of wallet” contract, designed to induce and reward customer loyalty by offering discounts when a customer contracts and commits to buying more than a threshold share in the category from the supplier. We explore the impact of these contracts on purchasing decisions and how they can potentially speed up diffusion of innovation in the context of a medical device market. We also showcase how having a better understanding of internal dynamics of buying organizations could help with developing more efficient marketing strategies.

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