The Impact of Buyer-Seller Relationships on Organizational Purchasing

The use of the perceived risk model as an explanation for purchasing behavior is a well accepted practice in both consumer and organizational contexts. The present study went a step further by introducing the concept of the buyer-seller relationship into the perceived risk/risk reduction behavior context. In this empirical work, the existence of an established buyer-seller relationship was found to significantly reduce the magnitude of overall risk perceived, the level of financial risk felt, and the extent to which various risk reduction strategies would be used.