Rahim, the purchasing agent for a carpet manufacturer, received a memo indicating that an upcoming financial review would determine which employees were most successful at reducing costs within their departments. The review also mentioned the potential termination of employees who do not adopt adequate cost-cutting measures. Rahim is faced with a decision-making situation wherein a salesperson selling a new weave-pattern machine to Rahim claims that the machine would save costs for the company in the long run. Rahim is unable to decide if he should buy the machine since he is faced with the risk of termination in case his decision backfires. In this case, _____ is likely to influence Rahim's organizational buying decision.

Question

Quizplus · Accepted Answer

Rahim's personal motivation to keep his job and avoid termination is likely to influence his decision-making in this situation. The threat of termination is a significant risk factor, which could make him more risk-averse and cautious in his decision-making process. Therefore, he may prioritize the need to satisfy his personal goals and reduce his own risk over other factors, such as differentiation, sole sourcing, or channels of distribution.

Rahim, the Purchasing Agent for a Carpet Manufacturer, Received a Memo