Buying decisions are of utmost significance to the profitability of retail firms. The review of literature suggests that empirical analysis on retailers’ decision making is lacking specifically with regards to the persuasion process. The studies reflect that there is a need for a model unique to the retailer’s buying behavior and the study aims to address the issue by giving a new direction to the discipline. As the primary purpose of the study is to assess the involvement constructs and paths to persuasion model in decision making by a retail buyer (in a new product introduction decision), two known models in consumer behavior—Elaboration Likelihood model (Petty et al., 1983) and Heuristic and Systematic Information Processing model (Chaiken, 1980) have been used to research the retailer’s buying behavior. The study has also used Krugman’s (1965) ideas on involvement and also the involvement scales developed by Laurent and Kapferer (1985) and Zaichkowsky (1985). In the current study, 46 retailers were surveyed. The paper looks at specific behavior and judges by the behavior on which persuasion method was effective. Therefore, actual persuasion method would be measured using behavioral scenarios. Krugman’s assertion has been tested by using persuasion methods as dependent variables and scales as independent variables. It was found that a heuristic view of persuasion is not captured in a significant way by either of the scales. Also, it was found that the size of the firm and buyer’s experience is independent of heuristic or systematic persuasion process.

Of late the impact of the retail buyer in the marketing of consumer products has gained much importance as the retail sector is consolidating. Retail buyers play a critical role in distribution system, as brands with broad and deep distribution, guarantees higher repurchase rate and outperforms better brands with poor distribution (Olver and Farris, 1989). Retail buyers represent retail firms or retailers and retail buying can be defined as the decision making process through which a retail buyer identifies, evaluates, and selects merchandise for resale to the consumer (Ettenson and Wagner, 1986, p. 42). Swindley (1992) proposed that retail buying is characterized by buying for resale and the chief role of a retail buyer is to choose products from within a given product area. Retail chains and retailers act as gatekeepers to consumer markets (Hirschman and Stampfl, 1980; see also Hansen and Skytte, 1998). Therefore, it becomes imperative for the producers to understand the retail buying behavior. Ample number of academic researches have been conducted to study retail buying behavior, but they appear to be scattered and unrelated (Hansen and Skytte, 1998).

The most widely discussed among the retailer buying behavior model is proposed by Sheth (1981). Nilsson and Host's (1987) comprehensive review of 34 studies talks about 389 criteria relevant to decision making. Robinson et al. (1967) classified the buying decision into three types—new buy, modified rebuy and straight rebuys. Empirical research studies of retail buying are quite rare. According to Hirschman and Mazursky (1982) (as cited by Ettenson and Wagner, 1986), for basic merchandise, the criteria used most frequently were contribution to margin, followed by consumer demand, product reputation, delivery and aesthetic properties. For new merchandise, the retailers use consumer demand followed by contribution, product reputation, aesthetic properties and delivery.

New product introductions by manufacturers have flooded the market, but the retail selling space is limited and hence, how the retailers make decisions on considering new products for sale constitutes an important aspect to study in retail buying. Identifying how a retail buyer purchases a new product (from existing or new suppliers) and understanding the decision making gives clarity to the topic, which is also the focus of the study. Sheth (1981) says that a retailer is more like a consumer in what he buys, and more like a producer in how he buys his merchandise.

Marketing Management Journal, Persuasion Models, Decision Making, Retail Sectors, Consumer Products, Consumer Markets, Systematic Information Processing Model, Consumer Behavior Models, Kapferer Scale, Logistic Regressions, Heuristic Persuasion Process.