9TH EDITION

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9TH EDITION
Selling Today
Manning and Reece
CHAPTER 7
UNDERSTANDING BUYER BEHAVIOR
PART IV
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LEARNING OBJECTIVES-1

• Discuss the meaning of a customer strategy
• Understand complex nature of consumer and
  business buyer behavior
• Discuss social and psychological influences
  shaping buying decisions
• Discuss power of perception in shaping buyer
  behavior

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LEARNING OBJECTIVES-2

• Distinguish between emotional and rational
  buying motives
• Distinguish between patronage and product
  buying motives
• Explain two commonly accepted theories about
  how people arrive at buying decision
• Describe three ways to discover customer buying
  motives

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CUSTOMER STRATEGYDEFINED

• 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
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CONSUMER vs. BUSINESS BUYERS

• Consumer buyer behavior Individuals and
  households who buy for personal consumption
• Business buyer behavior Organizations that buy
  goods and services used in production of other
  products and services that are sold, rented, or
  supplied to others

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BUYER BEHAVIOR COMPLEXITY

• ADOPT ONE-TO-ONE MARKETING STRATEGY
• CULTIVATE LONG-TERM RELATIONSHIP WITH EACH
  CUSTOMER
• WORKS FOR BOTH RETAIL AND BUSINESS-TO-BUSINESS

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CUSTOMER STRATEGY MODEL
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CURRENT TRENDS

• Consumers moving upscale to premium, luxury
  goods
• Customer respect central to success in every
  market
• Customers from diverse racial, ethnic, and
  cultural backgrounds

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BASIC NEEDSMASLOW

• Physiological food, shelter
• Security free from danger
• Social identification with social groups,
  friendship
• Esteem desire to feel worthy in eyes of others
• Self-Actualization need for mastery,
  self-fulfillment

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GROUP INFLUENCES

• Role expectations associated with position
• Reference Groups categories of people you see
  self belonging to
• Social Class group with similar jobs,values,
  interests, lifestyles
• Culture influences of group with common
  language, environment, also sub-cultures

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GROUP INFLUENCES
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DAIMLER/CHRYSLER
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APPLICATION OVER-GENERALIZING

• Remember, prospects act as individuals, not
  stereotypes
• Facts are negotiable.
  Perception is rock-solid.
• Some predict the demise of demographics in
  marketing How would this impact customer
  analysis?

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USING JUST DEMOGRAPHICS

• 21-34-year-old female
• 40,000 income
• college educated
• owns home
• Could yield

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SELECTIVE PROCESSES-OVERVIEW
EXPOSURE
ATTENTION
PERCEPTION
RETENTION
BEHAVIOR
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PERCEPTION CUSTOMER NEED FORMATION

• Selective AttentionWe tend to screen out
  certain messages information overload
• Buyers conditioned by socio- 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

• EMOTIONAL
• --Acts due to passion or sentiment
• -- Emotional appeals common
• --Discovery of emotions involved helps determine
  why customer buys

• RATIONAL
• --Acts on reason or judgment
• --Relatively free of emotion
• --Discovery of important product, service,
  delivery details critical

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PATRONAGE AND PRODUCT MOTIVES

• PATRONAGE
• --Buy from particular firm
• -- Past experience positive
• --Relevant elements superior service
  competent sales staff product selection

• PRODUCT
• --Buyer believes one is product superior to
  others
• --Preferences for specific brands
  quality price
  design/engineering

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BUYER RESOLUTION THEORY

• Sometimes called the 5-Ws
• 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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NEED-SATISFACTION THEORY

• Beliefs about salespersons role
• Foundation of consultative selling
• Effective two-way communication
• Systematic inquiry with prospect
• Two-way advocacy position
• Provides best solution
• Aims to develop long-term customer relationship

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THEORIES COMPARED-NEEDS WINS

• Needs approach based on systematic analysis of
  buyer situation
• Needs approach works well in all selling
  situations
• Customers experience less stress with needs
  approach

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BUSINESS-TO-BUSINESS

• Differs from consumer level
• Often a group or committee decision
• Buyer often does
• Purchase requisition or request
• Systematic information search
• Evaluates alternatives
• Issues purchase order
• Performs post-buy evaluation

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BUSINESS BUYING DECISION STEPS
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DISCOVERING CUSTOMERS BUYING MOTIVES
ASK QUESTIONS
BE A GOOD LISTENER
BE A GOOD OBSERVER