The Buying Process and The Buying Process and Buyer BehaviorBuyer Behavior

Concepts and PracticesConcepts and Practices

Customer Strategy Customer Strategy DefinedDefined

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

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Strategic/ConsultativeStrategic/ConsultativeSelling ModelSelling Model

FIGURE 8.1

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Complex Nature ofComplex Nature ofCustomer BehaviorCustomer Behavior

• Individual customers perceive the product in their Individual customers perceive the product in their own termsown terms

• The customer is a person,The customer is a person,not a statisticnot a statistic

• Companies that fully acceptCompanies that fully acceptthis basic truth are likely tothis basic truth are likely toadopt a one-to-oneadopt a one-to-onemarketing strategymarketing strategy

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Consumer versusConsumer versusOrganizational BuyersOrganizational Buyers

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

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

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Differences Between Consumer and Differences Between Consumer and Organizational BuyersOrganizational Buyers

FIGURE 8.2

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Types of Organizational Buying Types of Organizational Buying SituationsSituations

• New-task buyNew-task buy• Salespeople rely on consultative selling skillsSalespeople rely on consultative selling skills

• Straight rebuyStraight rebuy• Salespeople constantly monitor satisfactionSalespeople constantly monitor satisfaction

• Modified rebuyModified rebuy• Salespeople can provide service/anticipate Salespeople can provide service/anticipate

changeschanges• Systems sellingSystems selling

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Types of ConsumerTypes of ConsumerBuying SituationsBuying Situations

•Habitual buying situationsHabitual buying situations•Variety-seeking buying situationsVariety-seeking buying situations•Complex buying situationsComplex buying situations

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Achieving AlignmentAchieving Alignment• The buying process is a systematic series of The buying process is a systematic series of

actions, or a series of defined, repeatable actions, or a series of defined, repeatable steps, intended to achieve a resultsteps, intended to achieve a result

• Salespeople need to be clear on how Salespeople need to be clear on how decisions are being madedecisions are being made

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

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Steps in the Buying Steps in the Buying ProcessProcess

FIGURE 8.3

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Steps in the Buying Steps in the Buying ProcessProcess

• Need awarenessNeed awareness• Salespeople can create value by determining Salespeople can create value by determining

problems and identifying solutionsproblems and identifying solutions

• Evaluation of solutionsEvaluation of solutions• Salespeople can create value by providing Salespeople can create value by providing

useful informationuseful information

• Resolution of problemsResolution of problems

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Steps in the Buying Steps in the Buying ProcessProcess

• PurchasePurchase• Salespeople create value by arranging financing Salespeople create value by arranging financing

or supervising delivery and installationor supervising delivery and installation

• ImplementationImplementation• Value creation involves timely delivery, superior Value creation involves timely delivery, superior

installation, accurate invoicing, or follow-up installation, accurate invoicing, or follow-up contacts by the salespersoncontacts by the salesperson

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Understanding Buying ProcessesUnderstanding Buying Processes

• Transactional buyersTransactional buyers• Salespeople can eliminate any unnecessary Salespeople can eliminate any unnecessary

costs or delayscosts or delays

• Consultative buyersConsultative buyers• Salespeople focus attention on needs Salespeople focus attention on needs

awareness/help customer evaluate solutionsawareness/help customer evaluate solutions

• Strategic alliance buyersStrategic alliance buyers

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Buyer Resolution Buyer Resolution TheoryTheory

•Why should I buy?Why should I buy? (need)(need)•What should I buy?What should I buy? (product)(product)•Where should I buy?Where should I buy?

(source)(source)•What is a fair price?What is a fair price?(price)(price)•When should I buy?When should I buy? (time)(time)

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Customer Strategy ModelCustomer Strategy Model

FIGURE 8.5

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Basic Needs—MaslowBasic Needs—Maslow

• Physiological: Physiological: food, shelterfood, shelter• SecuritySecurity: free from danger: free from danger• Social: Social: identificationidentification

with social groups,with social groups,friendshipfriendship

• EsteemEsteem: desire to feel worthy in eyes of others: desire to feel worthy in eyes of others• Self-actualizationSelf-actualization: need for mastery, self-: need for mastery, self-

fulfillmentfulfillment

FIGURE 8.6

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Group InfluencesGroup Influences

FIGURE 8.7

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Group InfluencesGroup Influences• Role: expectations associated with positionRole: expectations associated with position• Reference groups: categories of people you Reference groups: categories of people you

see yourself belonging tosee yourself belonging to• Social class: group with similar values, Social class: group with similar values,

interests, lifestyles interests, lifestyles • Culture: influences of group with common Culture: influences of group with common

language, environment, also subcultures language, environment, also subcultures

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Discussion QuestionDiscussion Question

Overgeneralizing based on demographics can be Overgeneralizing based on demographics can be dangerous. Remember, prospects act as dangerous. Remember, prospects act as individuals, not stereotypes.individuals, not stereotypes.Some predict the demise of demographics in Some predict the demise of demographics in marketing.marketing.

• How would this impact customer analysis?How would this impact customer analysis?

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Perception: CustomerPerception: CustomerNeed FormationNeed Formation

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

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

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

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

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Buying MotivesBuying Motives• A buying motive is an aroused need, drive, or A buying motive is an aroused need, drive, or

desire that stimulates behavior to satisfy the desire that stimulates behavior to satisfy the aroused needaroused need

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

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

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Emotional and Rational Emotional and Rational MotivesMotives

EmotionalEmotional

• Acts due to passion or Acts due to passion or sentimentsentiment

• Emotional appeals commonEmotional appeals common• If two products are If two products are

identical, the salesperson identical, the salesperson who “connects” has the who “connects” has the advantageadvantage

RationalRational

• Acts on reason or Acts on reason or judgmentjudgment

• Relatively free of emotionRelatively free of emotion• Salespeople gather, Salespeople gather,

interpret, and disseminate interpret, and disseminate customer-specific customer-specific informationinformation

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Discussion QuestionsDiscussion Questions

•What types of purchases would What types of purchases would be dominated by emotional be dominated by emotional buying motives?buying motives?

•What types of purchases would What types of purchases would be dominated by rational buying be dominated by rational buying motives?motives?

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Customers Can MakeCustomers Can MakeBetter Decisions Using:Better Decisions Using:

See the Website

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Discussion QuestionsDiscussion Questions

•What sort of role would What sort of role would information provided by sources information provided by sources like like Consumer ReportsConsumer Reports play in a play in a customer’s decision?customer’s decision?

•How can a salesperson use this How can a salesperson use this information to his/her information to his/her advantage?advantage?

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Patronage and Product Patronage and Product MotivesMotives

PatronagePatronage

• Buy from a particular firmBuy from a particular firm• Past experience positivePast experience positive• Relevant elements: Relevant elements:

superior service, product superior service, product selection, competent sales selection, competent sales staffstaff

ProductProduct

• Buyer believes one Buyer believes one product is superior to product is superior to othersothers

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