1. The Buying Process and Buyer Behavior
Concepts and Practices

2. 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 customer’s buying needs and motives.”

3. Strategic/Consultative Selling Model
FIGURE
8.1

4. Complex Nature of Customer 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

5. Consumer versus Organizational 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

6. Differences Between Consumer and Organizational Buyers
FIGURE
8.2

7. 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

8. Types of Consumer Buying Situations
Habitual buying situations
Variety-seeking buying situations
Complex buying situations

9. 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 buyer’s decision-making process

10. Steps in the Buying Process
FIGURE
8.3

11. 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

12. 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

13. 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

14. 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)

15. Customer Strategy Model
FIGURE
8.5

16. Basic Needs—Maslow Physiological: food, shelter
FIGURE
8.6
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

17. Group Influences
FIGURE
8.7

18. 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

19. 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?

20. Perception: Customer Need 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

21. Buying Motives
A buying motive is an aroused need, drive, or desire that stimulates behavior to satisfy the aroused need
It’s helpful to discover the “dominant buying motive” or DBM
Four basic motive types—emotional, rational, patronage, and product

22. Emotional and Rational Motives
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

23. Discussion Questions
What types of purchases would be dominated by emotional buying motives?
What types of purchases would be dominated by rational buying motives?

24. Customers Can Make Better Decisions Using:
See the Website

25. Discussion Questions
What sort of role would information provided by sources like Consumer Reports play in a customer’s decision?
How can a salesperson use this information to his/her advantage?

26. Patronage and Product Motives
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