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Purchase Behavior and Communication

Purchase Behavior and Communication. Learning Objectives Determine the differences between individual and organizational buyers. Learn environmental influences on the purchase decision process. Find out what goes into the successful sending and receiving of a message.

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Purchase Behavior and Communication

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  1. Purchase Behavior and Communication Learning Objectives • Determine the differences between individual and organizational buyers. • Learn environmental influences on the purchase decision process. • Find out what goes into the successful sending and receiving of a message. • Examine methods for overcoming communication barriers. • Understand the importance of using the voice as a communication tool. • Explore the effects of body language and proxemics in selling. • Chapter 4

  2. Lincoln’s Gettysburg Address • Contained 268 words • 198 were one syllable words • 50 were two syllable words • Only 20 words had more than two syllables Small words really work!

  3. Consumer Behavior Consumer behavior is the set of actions that make up an individual’s consideration, purchase, and use of products and services. This includes the purchase as well as the consumption of the products and services.

  4. The Purchase Decision Process Problem Recognition(Motive Arousal) The Search for Alternatives Internal Search(Habitual, Routine) External Search(Extensive, Limited) Evaluation of Alternatives The Purchase Decision Postpurchase Evaluation

  5. (A 5-Step Process) I. Problem Recognition (Motive Arousal) • May occur when the customer receives information from advertising or from conversation with friends that causes awareness of need • In relationship selling, sometimes hinges on the seller’s ability to uncover a need • May occur when the consumer re-evaluates the current situation and perceives an area of void or dissatisfaction • The Purchase Decision Process

  6. (A 5-Step Process) • The Purchase Decision Process 2. Search for Alternatives • Limited By: • Time and cost • Experience and urgency • Value of purchase • Risk involved in the purchase • 3. Evaluation of Alternatives • Evoked Set is the list of alternatives • Salient attributes are used to evaluate products • Determinate attributes are motives used to make a decision

  7. (A 5-Step Process) 4. Purchase Decision • Several alternatives may seem equally acceptable • Can be made easier by a professional salesperson • Involves a set of related criteria • Tangible features of the product • Financial considerations: price, discounts, credit policies • Intangible factors: reputation, past performance, or delivery dates • The Purchase Decision Process

  8. (A 5-Step Process) 5. Postpurchase Evaluation Cognitive Dissonance is…. • The level of anxiety depends on the importance of the decision and the attractiveness of rejected alternatives A seller can reduce this by: • Reinforcing the buyer’s belief that the right decision was made • Demonstrating the capabilities and quality of the product • The Purchase Decision Process Postpurchase Anxiety

  9. Influences on the Purchase Decision Process • Psychological Influences: • The role of perception • Mood of the moment • Attitudes • Attitudes are habitual patterns of response to previous experiences • A negative attitude must be overcome before a sale can be made • Attitudes are the mind’s paintbrush. They can color or affect any situation

  10. How Many Squares Do You See?

  11. The Self-Image • Self-image impacts the problem recognition phase of consumer behavior • Many of our permanent beliefs about our self-image are developed in our childhood • Advertisements that are consistent with our self-image are more persuasive • Self-image and public-image are not always the same • Much behavior can be explained if the self-image is understood

  12. Sociocultural Influences • Culture is an influence that is a completely learned and handed-down way of life • Cross-culture business considerations • Physical Environment • Social Class • Impacts the information search phase of consumer behavior • Advertising campaigns must differ in their attempts to reach the various social classes • Reference Groups

  13. Organizational Buying Versus Consumer Buying • Some fundamental differences • For Organizational Buyers… • Decision Maker - usually a buying center • Buying Criteria - more complex • Buying Motivation - rational, economic, and/or emotional • Characteristics of Organizational Buyers • Fewer in number • Purchases involve larger dollar volume • Less freedom of decision

  14. Organizational Buying Versus Consumer Buying Ultimate Consumer Buying Motives Organizational Buying Motives • Increase wealth • Alleviate fear • Secure social approval • Satisfy bodily needs • Experience happiness or pleasure • Gaining an advantage • Imitating • Dominating others • Recreation • Improving health • Profit • Economy • Flexibility • Uniformity of output • Salability • Protection • Utility • Guarantees • Delivery • Quality

  15. Multiple Buying Influence • Multiple Buying Influence • Several people involved directly or indirectly in the decision making process • The Buying Center • Users • Buyers • Influencers • Gatekeepers • Decision Makers

  16. Organizational Buying Motives • For organizational buyers, more of the decisions are based on rational buying motives rather than emotional motives • Research and analysis concerning the product and the company conducted prior to purchase

  17. The Communication Agenda The Channels Through Which Communication Must Flow:

  18. The Communication Model for Verbal and Nonverbal Messages Verbal/Nonverbal(Noise) Encoding(Implications) Message(Actions) Decoding(Inferences) Source Receiver Verbal Skills(Clarify Meaning) Nonverbal Skills(Read)

  19. Barriers to Effective Communication • Words chosen • Possible distractions • Timing of meeting • Interruptions • Technical Erudition • Poor listening habits • Make use of feedback

  20. The Use of the Voice • Clarity or Articulation • Volume • Uniqueness • Silence • Rhythm • Rate of Speech

  21. The Ability to Manage Communication Dimensions 55% Visual 38% Tone of Voice % of Total Impact 7% Words Low Ability to Control Medium High

  22. (Nonverbal Communication) • Visual communication expresses the majority of a person’s feelings and emotions • Body Language • Includes facial expressions, shifts in posture and stance, and movement of body limbs • Selling Without Words • Understand the Body Language of Gestures • Hand Movements

  23. Warning Signals • Rubbing the nose • Resting the head in the hands with elbows on the desk • Watch for these signs that the prospect is either • not understanding or not accepting the message: • Finger under collar or rubbing back of neck

  24. Proxemics • Successful salespeople move closer to a client when closing • It is best to carefully test for a prospect’s comfort zone • Comfort zones tend to change with sex, status, or age • Four to twelve feet could be a good distance in which to begin a sales interview • The intimate zone should be entered only by invitation or during a handshake Proxemics: The physical distance individuals prefer to maintain between themselves and others

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