The Buying Process and Buyer Behavior

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The Buying Process and Buyer Behavior
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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

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Learning Objectives

• Understand the importance of alignment between
  the selling process and the customers buying
  process
• Discuss the social and psychological influences
  that shape customer buying decisions

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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 customers buying needs and motives.

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Strategic/ConsultativeSelling Model
FIGURE
8.1
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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

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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

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Differences Between Consumer and Organizational
Buyers
8.2
FIGURE
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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

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Types of ConsumerBuying Situations

• Habitual buying situations
• Variety-seeking buying situations
• Complex buying situations

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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 buyers decision-making
  process

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Steps in the Buying Process
FIGURE
8.3
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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

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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

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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

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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)

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Customer Strategy Model
FIGURE
8.5
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Basic NeedsMaslow

• 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

FIGURE
8.6
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Group Influences
FIGURE
8.7
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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

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Daimler Chrysler
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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?

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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

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Buying Motives

• A buying motive is an aroused need, drive, or
  desire that stimulates behavior to satisfy the
  aroused need
• Its helpful to discover the dominant buying
  motive or DBM
• Four basic motive typesemotional, rational,
  patronage, and product

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Emotional and Rational Motives

• 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

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Discussion Questions

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

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Customers Can MakeBetter Decisions Using
See the Website
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Discussion Questions

• What sort of role would information provided by
  sources like Consumer Reports play in a
  customers decision?
• How can a salesperson use this information to
  his/her advantage?

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Patronage and Product Motives

• 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