The IMP Model is an interaction model developed in 1982 by the Industrial Marketing and Purchasing Group to analyze 1300 business relationships in Europe. The model examines customer and supplier interactions through four elements: the interaction process between parties, the characteristics of the interacting parties, the business environment, and the atmosphere that develops between parties over time. The interaction process includes product/service exchanges, information exchanges, financial exchanges, and social exchanges. The model provides a framework for understanding long-term business relationships.

1. Customer and Supplier
Interaction – The Industrial
Marketing and Purchasing
IMP Model
Mr. Gan Chun Chet
MSc (UMIST) (UK), BSc (Hon) (UK)

2. 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

3. The IMP Model
 Assumed long term relationship
 The IMP Model consists of:
1) Interaction Process
2) Interaction Parties
3) Interaction Environment
4) Atmosphere

4. The IMP Model
Organisation
Technology
Structure
Strategy
Individual
Aims
Experience
Organisation
Individual
Atmosphere
Power/dependency
Cooperation
Closeness
Expectations
Product/Service
Information
Financial
Social
Institutionalisation
Adaptation
Environment
Market Structure
Dynamism
Internationalisation
Position in the manufacturing
channel
Social System

5. 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

6. The IMP Model
 Financial Exchange – Currency exchange and
uncertainty involved over time
 Social Exchange – Communication, experience,
culture, etc.

7. 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

8. 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

9. 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

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