Transcript Document

9TH EDITION
Manning and Reece
CHAPTER 7
UNDERSTANDING
BUYER BEHAVIOR
PART IV
7-1
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
7-2
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
7-3
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.”
7-4
STRATEGIC/CONSULTATIVE
SELLING MODEL
Figure 7.1
7-5
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
7-6
BUYER BEHAVIOR COMPLEXITY
ADOPT ONE-TO-ONE
MARKETING STRATEGY
CULTIVATE LONG-TERM
RELATIONSHIP WITH EACH
CUSTOMER
WORKS FOR BOTH RETAIL
AND BUSINESS-TOBUSINESS
7-7
CUSTOMER STRATEGY MODEL
Figure 7.2
7-8
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.
7-9
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
7-10
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.
7-11
GROUP INFLUENCES
Figure 7.4
7-12
DAIMLER/CHRYSLER
7-13
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?
7-14
USING JUST
DEMOGRAPHICS
21-34-year-old female
$40,000+ income
college educated
owns home
Could yield
7-15
SELECTIVE PROCESSES-OVERVIEW
EXPOSURE
ATTENTION
PERCEPTION
RETENTION
BEHAVIOR
7-16
PERCEPTION: CUSTOMER NEED
FORMATION
Selective Attention—We tend to
screen out certain messages
…information overload
Buyers conditioned by sociocultural background and need to
use various selective processes
Salespersons should encourage
client
to discuss “perceptions”
of products
7-17
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
7-18
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
7-19
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
7-20
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)
7-21
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
7-22
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
7-23
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.
7-24
BUSINESS BUYING DECISION STEPS
Figure 7.5
7-25
DISCOVERING CUSTOMER’S
BUYING MOTIVES
ASK QUESTIONS
BE A GOOD LISTENER
BE A GOOD OBSERVER
Last slide Chapter 7.
7-26