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Thursday, 27 September 2018

Conflict In Group Buying Decision

A logical outgrowth of joint purchasing responsibilities is conflict between members of the buying center. Such conflict can be constructive if it leads to a close  examination of the alternatives and eventual agreement on suppliers and product choice. Yet conflict can be destructive if members begin questioning each other's motives and roles. I such cases, some external arbitration may be necessary and if conflict persists,the buying group might be dissolved.

The key question is whether conflict in group buying decision can be resolved constructively. Sheth (1973) cites three types of in the buying group.
First disagreements may occur regarding capabilities of suppliers. Such conflict is likely to be resolved when the buying center obtains more information.
Second, conflict may occur when members disagree on the criteria for evaluation. Purchasing may place more emphasis on cost,engineering on product specifications. Such conflict is likely to be resolved by persuasion. Dissenting members are persuaded to take an overall corporate view rather than be swayed by their departmental objectives.
Third conflict can occur when there are difference in personality or in the style of decision making (centralized versus shared). Such conflict will result in political and is likely to lead to destructive consequences for the buying center.