A risk analysis of industrial buyers: The case of mid‐range computers

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Abstract
One of the most problematic and risky purchases that an organization has to make is which computer system to buy. The rapid technological changes within the computer market further increase the high risk already perceived as the result of the high price tag and the far reaching organizational consequences of such a purchase. An examination of this purchase situation using a perceived risk framework would highlight the risks involved and how those risks can be reduced. A questionnaire survey of DEC computer purchasers showed that personal risks were as important as company risks to the respondents, and that the two underlying factors seemed to be psycho‐social risk and personal financial risk. In addition, the probability and seriousness components of all the risk statements were significantly correlated. The most useful strategies to reduce these risks were to obtain a warranty or guarantee and to see the product in operation before purchasing. Several underlying factors were discernible from the risk relievers ratings. These included a clarifying factor and a simplifying factor. Implications are discussed for a best practice guide for industrial purchasers and for the more effective training of the salesforce.

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