The Buying Process and Buyer Behavior

1. Selling Today 10th Edition CHAPTER Manning and Reece 8 The Buying Process and Buyer Behavior

2. Learning Objectives • Discuss the meaning of a customer strategy • Explain the difference between consumer and organizational buyers • List and describe the steps in the typical buying process • Discuss the buying process of the transactional, consultative, and strategic buyer

3. Learning Objectives • Understand the importance of alignment between the selling process and the customer’s buying process • Discuss the social and psychological influences that shape customer buying decisions

4. Customer 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.”

5. Strategic/ConsultativeSelling Model 8.1 FIGURE

6. Complex Nature ofCustomer Behavior • Individual customers perceive the product in their own terms • The customer is a person,not a statistic • Companies that fully acceptthis basic truth are likely toadopt a one-to-onemarketing strategy

7. 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

8. Differences Between Consumer and Organizational Buyers 8.2 FIGURE

9. Types of Organizational Buying Situations • New-task buy • Salespeople rely on consultative selling skills • Straight rebuy • Salespeople constantly monitor satisfaction • Modified rebuy • Salespeople can provide service/anticipate changes • Systems selling

10. Types of ConsumerBuying Situations • Habitual buying situations • Variety-seeking buying situations • Complex buying situations

11. Achieving 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 decisions are being made • Acquire specific information rather than make generalizations about the buyer’s decision-making process

12. Steps in the Buying Process 8.3 FIGURE

13. Steps in the Buying Process • Need awareness • Salespeople can create value by determining problems and identifying solutions • Evaluation of solutions • Salespeople can create value by providing useful information • Resolution of problems

14. Steps in the Buying Process • Purchase • Salespeople create value by arranging financing or supervising delivery and installation • Implementation • Value creation involves timely delivery, superior installation, accurate invoicing, or follow-up contacts by the salesperson

15. Understanding Buying Processes • Transactional buyers • Salespeople can eliminate any unnecessary costs or delays • Consultative buyers • Salespeople focus attention on needs awareness/help customer evaluate solutions • Strategic alliance buyers

16. Buyer 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)

17. Customer Strategy Model 8.5 FIGURE

18. Basic 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 8.6 FIGURE

19. Group Influences 8.7 FIGURE

20. Group Influences • Role: expectations associated with position • Reference groups: categories of people you see yourself belonging to • Social class: group with similar values, interests, lifestyles • Culture: influences of group with common language, environment, also subcultures

21. Daimler Chrysler

22. Discussion Question Overgeneralizing based on demographics can be dangerous. Remember, prospects act as individuals, not stereotypes. Some predict the demise of demographics in marketing. • How would this impact customer analysis?

23. 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

24. Buying 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

25. 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 Emotional and Rational Motives

26. Discussion Questions • What types of purchases would be dominated by emotional buying motives? • What types of purchases would be dominated by rational buying motives?

27. Customers Can MakeBetter Decisions Using: See the Website

28. Discussion Questions • What sort of role would information provided by sources like Consumer Reports play in a customer’s decision? • How can a salesperson use this information to his/her advantage?

29. 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 Patronage and Product Motives