lagueux suggestive selling

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Suggestive Selling in the Suggestive Selling in the Restaurant Business : a Restaurant Business : a Framework Connecting Framework Connecting Selling Approaches to Sales Selling Approaches to Sales Encounter Outcomes Encounter Outcomes By Jean Lagueux By Jean Lagueux Institut de tourisme et Institut de tourisme et d d hôtellerie du Québec hôtellerie du Québec 1

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Suggestive Selling in the Restaurant Suggestive Selling in the Restaurant Business : a Framework Connecting Business : a Framework Connecting

Selling Approaches to Sales Selling Approaches to Sales Encounter OutcomesEncounter Outcomes

By Jean LagueuxBy Jean Lagueux

Institut de tourisme et dInstitut de tourisme et d’’hôtellerie du Québechôtellerie du Québec

1

ObjectivesObjectives

• Three foldThree fold– Define a framework of selling approach in the Define a framework of selling approach in the

environment of restaurant selling.environment of restaurant selling.– Measure the impact of the different sales Measure the impact of the different sales

approach on sales encounter outcomes.approach on sales encounter outcomes.– Explore the restaurant / waiterExplore the restaurant / waiter’’s social s social

responsibility contextresponsibility context

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Selling StylesSelling Styles

• Suggestive sellingSuggestive selling• Consultative sellingConsultative selling• Transactional sellingTransactional selling• Persuasive sellingPersuasive selling• Seduction sellingSeduction selling• Relational sellingRelational selling

• Partnership sellingPartnership selling• Adaptive sellingAdaptive selling• Cross-sellingCross-selling• Up-sellingUp-selling• Add-on sellingAdd-on selling• Value-added sellingValue-added selling

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Suggestive SellingSuggestive Selling

• LacksLacks– Proper definitionProper definition– Theoretical basisTheoretical basis– Based on : Based on :

• Professional experienceProfessional experience• Anecdotal evidenceAnecdotal evidence

– Effects are not well definedEffects are not well defined

4

BackgroundBackground

• Courtesy in a restaurant setting and suggestive selling (Brooks, 1961)Courtesy in a restaurant setting and suggestive selling (Brooks, 1961)

• Factors influencing restaurant servers to use suggestive selling (Johnson & Factors influencing restaurant servers to use suggestive selling (Johnson & Masotti, 1986)Masotti, 1986)– Definition : Definition : ““asking a patron if he would like wine with the meal orderedasking a patron if he would like wine with the meal ordered””

• Suggestive selling versus the volume of business (Redmon & Dickinson Suggestive selling versus the volume of business (Redmon & Dickinson 1990)1990)

• Recommendations made by the server at different times of the meal (Lynn, Recommendations made by the server at different times of the meal (Lynn, 2003)2003)

• ““the art of selling a customer the original item he or she came in to buy, plus the art of selling a customer the original item he or she came in to buy, plus additional items that complement the original itemadditional items that complement the original item”” (Kizer & Bender 2007) (Kizer & Bender 2007)

• 70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall, 70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall, 2009)2009)

• ConclusionConclusion– Economic benefits Economic benefits – Not connected to customerNot connected to customer’’s needss needs

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Consultative SellingConsultative Selling

• Type of awareness attributed to restaurant serversType of awareness attributed to restaurant servers– Mars and Nicod (1984)Mars and Nicod (1984)

• Customer-oriented selling :Customer-oriented selling :– Comes from the marketing conceptComes from the marketing concept– Customer satisfaction is integrated in the equation of successCustomer satisfaction is integrated in the equation of success– Seen as a problem solverSeen as a problem solver

• Saxe and Weitz (1982)Saxe and Weitz (1982)

• Providing information - an advisorProviding information - an advisor– Job satisfaction, organizational commitment, sales training and Job satisfaction, organizational commitment, sales training and

sales skillssales skills• Liu and Leach (2001)Liu and Leach (2001)

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Consultative SellingConsultative Selling

• Approach used in situations when a customer needs to Approach used in situations when a customer needs to find a solution to a problem that has not yet been find a solution to a problem that has not yet been resolved or when he needs help or a suggestionresolved or when he needs help or a suggestion– Zeyl (2003)Zeyl (2003)

• Upselling technique that has the goal to increase the Upselling technique that has the goal to increase the average check while enhancing the guest experienceaverage check while enhancing the guest experience– Shock, Bowen, and Stefanelli Shock, Bowen, and Stefanelli (2004)(2004)

• Conclusion Conclusion – Difficulty assessing customerDifficulty assessing customer’s’s needs needs– Specific needs have not been satisfiedSpecific needs have not been satisfied– New approaches can be suggested to himNew approaches can be suggested to him

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Transaction SellingTransaction Selling

Products are well known to the customer Products are well known to the customer (Zeyl, 2003)(Zeyl, 2003) – Large amount of information available to the customerLarge amount of information available to the customer– Previous knowledgePrevious knowledge– The use of salespeople is less requiredThe use of salespeople is less required– To describe featuresTo describe features– To take ordersTo take orders

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Persuasion SellingPersuasion Selling

• Manske and Cordua (2005)Manske and Cordua (2005)– Use of different approaches to persuadeUse of different approaches to persuade

– ReciprocityReciprocity

– ScarcityScarcity

– LikingLiking

– CredibilityCredibility

– PowerPower

– SimilaritiesSimilarities

– Physical attractivenessPhysical attractiveness

– EmpathyEmpathy

• Extrinsic aspects of the purchase situation.Extrinsic aspects of the purchase situation.9

The ServerThe Server

Self-Monitoring Self-Monitoring • Adaptation in response to the perceived differences Adaptation in response to the perceived differences

(Snyder, 1974) (Snyder, 1974)

• Motivation to alter the behaviorMotivation to alter the behavior– Theory of social exchange Theory of social exchange (Thibaut & Kelley, 1952)(Thibaut & Kelley, 1952)

• Cost of effort versus personal gainCost of effort versus personal gain– Adaptive selling Adaptive selling

• EmpathyEmpathy• AndrogynyAndrogyny• Being an openerBeing an opener• Locus of controlLocus of control• Self-efficacy Self-efficacy

• Service Predisposition Service Predisposition (Lee-Ross, 2000)(Lee-Ross, 2000)

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Selling Environment Selling Environment

Differences with retail settingsDifferences with retail settings• Sequence of service Sequence of service (McMahon & Schmelzer, 1989)(McMahon & Schmelzer, 1989)

– Roles and responsibilities Roles and responsibilities – SimultaneitySimultaneity

• Contact pointsContact points• Captive aspect of the service encounterCaptive aspect of the service encounter

• The importance of the menuThe importance of the menu

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What makes it suggestive ?What makes it suggestive ?

• Bringing to active memory, options Bringing to active memory, options – ForgottenForgotten– IgnoredIgnored– UnknownUnknown

• Altered behaviourAltered behaviour– Considering needsConsidering needs– Trying to persuadeTrying to persuade

• Not simply related to presentationNot simply related to presentation

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Transaction selling

Sales performance

Customer satisfaction

Consultative selling

Persuasion selling

Figure 2: Effects of suggestive selling

Variable

Higher

Lower

Variable

Higher

Variable

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ContributionContribution

• Definition for suggestive sellingDefinition for suggestive selling

• Redefining the SO-CO in a service Redefining the SO-CO in a service environmentenvironment

• Contrasting sales to customer satisfaction Contrasting sales to customer satisfaction in a new wayin a new way

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ConclusionConclusion

• Marketing my productsMarketing my products

• Marketing to the customerMarketing to the customer

• Marketing with the customerMarketing with the customer

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