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

2. 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

3. 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

4. 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.”

5. STRATEGIC/CONSULTATIVE SELLING MODEL
Figure 7.1
Figure 7.1

6. 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

7. BUYER BEHAVIOR COMPLEXITY
ADOPT ONE-TO-ONE MARKETING STRATEGY
CULTIVATE LONG-TERM RELATIONSHIP WITH EACH CUSTOMER
WORKS FOR BOTH RETAIL AND BUSINESS-TO-BUSINESS

8. CUSTOMER STRATEGY MODEL
Figure 7.2.
Figure 7.2

9. 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
See Figure 7.3.

10. BASIC NEEDS—MASLOW 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

11. 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
See Figure 7.4, next slide.

12. GROUP INFLUENCES
Figure 7.4.
Figure 7.4

13. DAIMLER/CHRYSLER
DaimlerChrysler markets their “team” of professionals.

14. 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?

15. USING JUST DEMOGRAPHICS
21-34-year-old female
$40,000+ income
college educated
owns home
Could yield
If the instructor feels the animation is politically incorrect, simply delete the image. Or, you might also discuss the
stereotype presented in the animation

16. SELECTIVE PROCESSES-OVERVIEW
EXPOSURE
ATTENTION
PERCEPTION
This is optional material for students not familiar with the basic selective processes model.
RETENTION
BEHAVIOR

17. PERCEPTION: CUSTOMER NEED FORMATION
Selective Attention—We 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

18. 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

19. EMOTIONAL AND RATIONAL
--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

20. PATRONAGE AND PRODUCT MOTIVES
--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

21. 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)

22. NEED-SATISFACTION THEORY
Beliefs about salesperson’s 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

23. 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

24. 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
See Figure 7.5, next slide.

25. BUSINESS BUYING DECISION STEPS
Figure 7.5.
Figure 7.5

26. DISCOVERING CUSTOMER’S BUYING MOTIVES
ASK QUESTIONS
DISCOVERING CUSTOMER’S BUYING MOTIVES
BE A GOOD LISTENER
BE A GOOD OBSERVER
Last slide Chapter 7.