Drivers of B2B Software Purchase Decisions

  • Authors:
  • Claudia Loebbecke;Thomas Weiss;Philip Powell;Christin Krooss

  • Affiliations:
  • Dept. of Business, Media and Technology Management, University of Cologne;Dept. of Business, Media and Technology Management, University of Cologne;Birkbeck College, University of London;Dept. of Business, Media and Technology Management, University of Cologne

  • Venue:
  • Proceedings of the 2010 conference on Bridging the Socio-technical Gap in Decision Support Systems: Challenges for the Next Decade
  • Year:
  • 2010

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Abstract

Organizations are increasingly turning to large, enterprise-wide software systems as potential solutions to managing complex business-to-business (B2B) relationships. These systems become so embedded into the business that they are best understood as socio-technical. The procurement process for such systems needs to be better understood. The purchase decision is seen as being based upon information-related and feature-related drivers. This paper develops a model of software purchase decisions and investigates seven resulting hypotheses. Testing with a sample of customers from a major, global software supplier demonstrates that information-related drivers, customer references and expert network recommendations, and feature-related drivers, price performance, functionality, and sales team service, play a major role in B2B software purchase decisions.