Transcript
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Chapter 8
The Buying
Process and
Buyer Behaviour
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Discuss the meaning of a customer strategy
Explain the difference between consumer and business buyers
Understand the importance of alignment between the selling process and the customer’s buying process
Learning Objectives
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Understand the buying process of the transactional, consultative, and strategic alliance buyer
Discuss the various influences that shape customer buying decisions
Learning Objectives (continued)
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Customer Strategy – a carefully conceived plan that will result in maximum customer responsiveness
Need an understanding of the customer’s buying needs and motives
Adding Value with a
Customer Strategy
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Want to develop repeat business should figure out a way to collect and systematize customer information:
Understand the buying process
Understand customer behaviour
Develop prospect base
Adding Value with a
Customer Strategy (continued)
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Consumer Buyer Behaviour – buying behaviour of individuals and households who buy goods and services for personal consumption
Treat different customers differently
Consumer Versus Business Buyers
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Business Buyer Behaviour – buying behaviour of organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit
Buying Centre – a cross-functional team of decision makers who often represent several departments
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Consumer Versus Business Buyers (continued)
Consumer Versus Business Buyers (continued)
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New-Task Buy – a first-time purchase of a product or service
Rely on consultative selling skills
Straight Rebuy – a routine purchase of previously purchased goods or services
Constantly monitor every situation to be sure customer is completely satisfied
Types of Business Buying Situations
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Modified Rebuy – purchasing when the buyer wants to reconsider product specifications, prices, or suppliers
Provide outstanding service post-sale and anticipate changing needs
Types of Business Buying Situations (continued)
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Systems Selling – type of selling that appeals to buyers who prefer a packaged solution to a problem from a single seller, thereby avoiding the series of separate decisions sometimes involved in a complex buying situation
Some strategic alliances work here
Types of Business Buying Situations (continued)
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Amount of time consumers devote to a buying situation can vary greatly depending on:
Cost of the product
Familiarity with the product, and
The importance of the item to the consumer
Types of Consumer
Buying Situations
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Three categories depending on degree of involvement:
Habitual Buying Decision – a consumer buying decision that requires very little involvement and in which brand differences are usually insignificant
(continued)
Types of Consumer
Buying Situations (continued)
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Variety-Seeking Buying Decision – consumer buying decision motivated by the desire for variety rather than product dissatisfaction
Complex Buying Decision – an often lengthy consumer buying decision characterized by a high degree of involvement
Types of Consumer
Buying Situations (continued)
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Buying Process – the stages a buyer goes through when making a buying decision
Systematic series of actions, or a series of defined, repeatable steps, intended to achieve a result
Understanding each individual buyer’s decision-making process is central to success in personal selling
Achieving Alignment with the Customer’s Buying Process
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Steps in the Typical
Buying Process
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Consumers who make habitual buying decisions often skip or reverse some of the stages
Salespeople can create value at each step:
Need Awareness – help determine magnitude of problem and identify solution
Evaluation of Solutions – provide useful information that helps with informed choice
(continued)
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Steps in the Typical
Buying Process (continued)
Resolution of Problems – high quality proposal
Purchase – hassle-free process and be your customer’s advocate
Implementation – quality monitoring of delivery through invoice, and follow-up to ensure satisfaction
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Steps in the Typical
Buying Process (continued)
Buyers are well aware of their needs
Become frustrated with salespeople who attempt to do a needs assessment, problem solving, or relationship building
Value added:
During the “purchase” and “implementation” steps of the process to make them hassle-free
Transactional Process Buyer
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Buyers may not be clear on or even aware of their needs
Situations can be complex and/or expensive
Value added:
Conduct a systematic assessment of situation
Help customer evaluate solutions
Help resolve any problems that surface prior to and post-purchase
Consultative Process Buyer
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Requires a careful study of the proposed partner
Both parties must be prepared to explain how they will add value and commit resources to establish and maintain the relationship
Strategic Alliance
Process Buyer
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A purchase will be made only after the prospect has answered the following:
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)
Salesperson cannot always anticipate which decision might be most difficult
Buyer Resolution Theory
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Developing a Customer Strategy Model
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Many factors influence a buying decision
Basic human needs have changed little throughout our economic history
Ways in which needs are fulfilled has changed greatly in the age of information
Basic Needs That Influence Buyer Behaviour
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Provides salespeople with a practical way of understanding which need is most likely to dominate customer behaviour in certain situations
Maslow’s Hierarchy of Needs
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Salespeople who understand these roles and influences can develop the type of insight customers view as being valuable
Group Influences That Influence Buying Decisions
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Role – a set of characteristics and expected social behaviours based on the expectations of others
Reference Group – two or more people who have well-established interpersonal communications and tend to influence the values, attitudes, and buying behaviours of one another
Point of comparison (continued)
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Group Influences That Influence Buying Decisions (continued)
Social class – group of people who share similar values, interests, and behaviours
Determined by a combination of income, education, occupation, and accumulated wealth
Culture – values, beliefs, institutions, transmitted behaviour patterns, and thoughts of a people or society
Microculture – value systems shared by communities based on common life experiences
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Group Influences That Influence Buying Decisions (continued)
Perception – a process through which sensations are interpreted, using knowledge and experience
Received through sight, hearing, touch, taste, and smell
Selective attention – screen out or modify stimuli if in conflict with previously learned attitudes
Perception – How Customer Needs are Formed
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A Buying Motive – an aroused need, drive, or desire that initiates the buying-decision process
Perceptions influence and shape this behaviour
Some are influenced by more than one buying motive
Buying Motives
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Dominant Buying Motive – has the greatest influence on a customer’s buying decision
Emotional Buying Motives – prompts the prospect to act as a result of an appeal to some sentiment or passion
Rational Buying Motives – prompt the prospect to act because of an appeal to the prospect’s reason or better judgment such as price, quality, and availability of technical assistance
Objective
Buying Motives (continued)
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Patronage Buying Motives – causes the prospect to buy a product from one particular company rather than another
Include superior service, attractive décor, product selection, and competence of the salesperson
Product Buying Motives – are reasons that cause the prospect to buy one particular product brand or label over another
Include brand, quality, price, and design or engineering preference
Buying Motives (continued)
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Consumer Versus Business Buyers (continued)
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Amount of time consumers devote to a buying situation can vary greatly depending on:
Cost of the product,
Familiarity with the product, and
The importance of the item to the consumer.
Types of Consumer
Buying Situations
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Steps in the Typical
Buying Process
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Buyers may not be clear on, or even aware of, their needs
Situations can be complex and/or expensive
Value added:
Conduct a systematic assessment of situation
Help customer evaluate solutions
Help resolve any problems that surface prior to and post-purchase
Consultative Process Buyer
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