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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall CHAPTER 8 The Buying Process and Buyer Behavior Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 2 Learning ObjectivesLearning Objectives Discuss the meaning of a customer strategy Explain the difference between consumer and organizational buyers Understand the importance of alignment between the selling process and the customers buying process 8-2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 3 Learning ObjectivesLearning Objectives Understand the buying process of the transactional, consultative, and strategic alliance buyer Discuss the various influences that shape customer buying decisions 8-3 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 4 Customer Strategy DefinedCustomer 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.” 8-4 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 5 Strategic/ConsultativeStrategic/Consultative Selling ModelSelling Model 8-5 FIGURE8.1 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 6 Complex Nature ofComplex Nature of Customer BehaviorCustomer Behavior Individual customers perceive the product in their own terms The customer is a person, not a statistic Companies that fully accept this basic truth are likely to adopt a one-to-one marketing strategy 8-6 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 7 Consumer versusConsumer versus Organizational BuyersOrganizational 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 8-7 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 8 Differences Between Consumer and Differences Between Consumer and Organizational BuyersOrganizational Buyers 8-8 FIGURE8.2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 9 Types of Organizational Types of Organizational Buying SituationsBuying Situations New-task buy Salespeople rely on consultative selling skills Straight rebuy Salespeople constantly monitor satisfaction Modified rebuy Salespeople can provide service and anticipate changes Systems selling 8-9 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 10 Types of ConsumerTypes of Consumer Buying SituationsBuying Situations Habitual buying situations Variety-seeking buying situations Complex buying situations 8-10 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 11 Mitchells/RichardsMitchells/Richards 8-11 Salespeople at Mitchells/Richards work hard to discover the customers needs and provide outstanding service after the sale. See the Hug Your Customers Website See Mitchells Website Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 12 Achieving AlignmentAchieving 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 making generalizations about the buyers decision-making process 8-12 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 13 Steps in the Buying ProcessSteps in the Buying Process 8-13 FIGURE8.3 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 14 Steps in the Buying ProcessSteps 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 15 Steps in the Buying ProcessSteps 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 8-15 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 16 Understanding Buying ProcessesUnderstanding Buying Processes Transactional process buyers Salespeople can eliminate any unnecessary costs or delays Consultative process buyers Salespeople focus attention on needs awareness and help customer evaluate solutions Strategic alliance process buyers Companies team up to gain mutual competitive advantage 8-16 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 17 Buyer Resolution TheoryBuyer Resolution Theory 8-17 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 18 Customer Strategy ModelCustomer Strategy Model 8-18 FIGURE8.5 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 19 Basic NeedsMaslowBasic 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 8-19 FIGURE8.6 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 20 Group InfluencesGroup Influences 8-20 FIGURE8.7 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 21 Group InfluencesGroup 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 8-21 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 22 Buying MotivesBuying 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 8-22 Emotional and Rational MotivesEmotional 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 8- 23Copyright 2010 Pearson Eduation, Inc. Publishing as Prentice Hall Patronage and Product MotivesPatronage 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 8- 24 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 25 Rational Buying MotivesRational Buying Motives 8-25 See the Website Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 26 Selling NASCAR in ManhattanSelling NASCAR in Manhattan 8-26 See the Website Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 27 Creating Value Throughout the Creating Value Throughout the Buying Process ModelBuying Process Model 8-27 FIGURE8.8 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 28 Key ConceptKey Concept Discussion Questions Discussion Questions Discuss the meaning of customer strategy Explain the difference between consumer and business buyers Explain the importance of alignment

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