Customer and Supplier Interaction – The Industrial Marketing and Purchasing IMP Model

Mr. Gan Chun ChetMSc (UMIST) (UK), BSc (Hon) (UK)

The IMP Model The Industrial Marketing and Purchasing IMP

Interaction Model By the Industrial Marketing and Purchasing

Group, Published in 1982 Model developed after analysing 1300

relationships in Europe

The IMP Model Assumed long term relationship The IMP Model consists of:

1) Interaction Process2) Interaction Parties3) Interaction Environment4) Atmosphere

The IMP Model

OrganisationTechnologyStructureStrategy

IndividualAimsExperience

Organisation

Individual

InstitutionalisationAdaptation

Product/ServiceInformationFinancialSocial

AtmospherePower/dependencyCooperationClosenessExpectations

EnvironmentMarket StructureDynamismInternationalisationPosition in the manufacturing channelSocial System

The IMP Model Interaction Process – The interaction between two

parties, the episodes and events of exchange that contribute towards institutionalization or destabilization of the relationship

Product or Service Exchange – What suppliers sells to customers and what customer trade the item(s) with

Information Exchange – Transfer of information, technical, commercial, soft data, etc

The IMP Model

Financial Exchange – Currency exchange and uncertainty involved over time

Social Exchange – Communication, experience, culture, etc.

The IMP Model Interaction Parties – The characteristic of the

parties, the participants Technology – Capability of manufacturing plant Organization Size, Structure and Strategy – Size

often relate to power. Strategy relates to emphasis and priorities of an organization

Organization Experience – The number of exchanges

Individuals – The person involved during the interaction, salesperson

The IMP Model Interaction Environment – Environmental issues Market structure Dynamism Internationalization – Some uncertainty that will arise

are the difference in language, culture, political content, etc

Position in the manufacturing channel – The position of the organization in the supply chain

Social System – Concerns are attitude, trade regulation, exchange rate

The IMP Model The Atmosphere – the variable that emerges

over time between the interaction parties Power-Dependency Co-operation-Conflict Trust-Opportunism Understanding-Mutual Expectation

Reference

Hakansson, H., “An Interaction Approach”, International Marketing and Purchasing of Industrial Goods, John Wiley, New York, 1982, pp. 10-27.