A Choice Model for the Selection of Computer Vendors and Its Empirical Estimation.

Author List: Tam, Kar Yan; Hui, Kai-Lung;
Journal of Management Information Systems, 2001, Volume 17, Issue 4, Page 97-124.
Despite the important role of vendors in the IT procurement process, very few studies have considered vendor characteristics and their effects on the decision outcome of IT managers. In this paper, we present a discrete choice model to examine the effects of vendor characteristics on the purchase decisions of IT managers. Our intent is to empirically assess the effects of product variety, brand name, average price, and network externalities in the selection of computer vendors. To ensure that the effects are not technology-dependent, we deliberately use long time series data to calibrate the model. Annual data at the vendor level from 1965 to 1993 is used to infer the choice criteria of IT managers in three computer categories: mainframe, minis, and small systems. Our empirical findings indicate that a broader product line and a strong brand can effectively enhance the choice probability of a vendor. Implications of these findings and possible extensions are also discussed.
Keywords: brand; choice model; IT procurement; network externality; price
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#285 0.176 effects effect research data studies empirical information literature different interaction analysis implications findings results important set large provide using paper
#97 0.129 set approach algorithm optimal used develop results use simulation experiments algorithms demonstrate proposed optimization present analytical distribution selection number existing
#20 0.096 procurement firms strategy marketing unified customers needs products strategies availability informedness proprietary purchase resonance policies open-source compatible competitors differentiation involve
#112 0.093 services service network effects optimal online pricing strategies model provider provide externalities providing base providers fee complementary demand offer derive
#22 0.081 software vendors vendor saas patch cloud release model vulnerabilities time patching overall quality delivery software-as-a-service high need security vulnerability actually
#88 0.081 managers managerial manager decisions study middle use important manager's appropriate importance context organizations indicate field experience management major organizational results
#107 0.077 app brand mobile apps paid utility facebook use consumption users brands effects activities categories patterns controls extension store positive factor
#102 0.073 choice type functions nature paper literature particular implications function examine specific choices extent theoretical design discussion value widely finally adopted