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The Buying Process and Buyer Behavior

Selling TodaySelling Today10th Edition

CH

AP

TE

R Manning and Reece

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Customer Strategy DefinedCustomer Strategy Defined

“A customer strategy is a carefully conceived plan that results in maximum customer responsiveness. One major dimension of this strategy is to achieve a better understanding of the customer’s buying needs and motives.”

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Strategic/ConsultativeSelling Model

Strategic/ConsultativeSelling ModelFIGURE 8.1

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Complex Nature ofCustomer BehaviorComplex Nature ofCustomer Behavior

• Individual customers perceive the product in their own terms

• The customer is a person,not a _______________

• Companies that fully acceptthis ____________ are likely toadopt a one-to-onemarketing strategy

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Consumer versusOrganizational Buyers

Consumer versusOrganizational Buyers

• Consumer buyer behavior refers to the buying behavior of individuals and households who buy goods and services for personal consumption

• Business (organizational) buyer behavior refers to the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

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Types of ConsumerBuying Situations

Types of ConsumerBuying Situations

• Habitual buying situations

• Variety-seeking buying situations

• Complex buying situations

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Achieving AlignmentAchieving Alignment

• The buying process is a systematic series of actions, or a series of defined, repeatable steps, intended to achieve a result

• Salespeople need to be clear on how __________ are being made

• Acquire _________ information rather than make generalizations about the buyer’s decision-making process

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Steps in the Buying ProcessSteps in the Buying Process

FIGURE 8.3

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Steps in the Buying ProcessSteps in the Buying Process

• Need awareness

• Salespeople can create value by determining problems and identifying solutions

• Evaluation of solutions

• Salespeople can create _____ by providing useful information

• Resolution of problems

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Steps in the Buying ProcessSteps in the Buying Process

• Purchase

• Salespeople create value by arranging financing or _____________ and installation

• Implementation

• Value creation involves timely delivery, _______________, accurate invoicing, or follow-up contacts by the salesperson

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Understanding Buying ProcessesUnderstanding Buying Processes

• Transactional buyers

• Salespeople can eliminate any unnecessary costs or delays

• Consultative buyers

• Salespeople focus __________ on needs awareness/help customer evaluate solutions

• Strategic alliance buyers

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Buyer Resolution TheoryBuyer Resolution Theory

• Why should I buy? (need)

• What should I buy? (product)

• Where should I buy? (source)

• What is a fair price? (price)

• When should I buy? (time)

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Customer Strategy ModelCustomer Strategy Model

FIGURE 8.5

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Basic Needs—MaslowBasic Needs—Maslow

• Physiological: food, shelter

• Security: free from danger

• Social: identificationwith social groups,friendship

• Esteem: desire to feel worthy in eyes of others

• Self-actualization: need for mastery, self-fulfillment

FIGURE 8.6

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Group InfluencesGroup Influences

FIGURE 8.7

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Group InfluencesGroup Influences

• Role: expectations associated with position

• Reference groups: categories of people you see yourself belonging to

• Social class: group with _________ values, interests, lifestyles

• Culture: influences of group with common language, environment, also subcultures

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Perception: CustomerNeed Formation

Perception: CustomerNeed Formation

• “Facts are negotiable. Perception is rock-solid.”

• Selective attention: We tend to screen out certain messages . . . information overload

• Buyers conditioned by social-cultural background and need to use various selective processes

• Salespersons should encourage client to discuss “perceptions” of products

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Buying MotivesBuying Motives

• A buying motive is an aroused need, drive, or desire that stimulates behavior to satisfy the aroused need

• It’s helpful to discover the “dominant buying motive” or DBM

• Four basic motive types—emotional, rational, patronage, and product

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Emotional and Rational MotivesEmotional and Rational Motives

Emotional

• Acts due to passion or sentiment

• Emotional appeals common

• If two products are identical, the salesperson who “connects” has the advantage

Rational

• Acts on reason or judgment

• Relatively free of emotion

• Salespeople gather, interpret, and disseminate customer-specific information

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Customers Can MakeBetter Decisions Using:Customers Can Make

Better Decisions Using:

See the Website

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Patronage and Product MotivesPatronage and Product Motives

Patronage

• Buy from a particular firm

• Past experience positive

• Relevant elements: superior service, product selection, competent sales staff

Product

• Buyer believes one product is superior to others

• Preferences for: specific brands, quality, price, design/engineering