Chap. 4 - Purchase Behavior 2-14-13

7/29/2019 Chap. 4 - Purchase Behavior 2-14-13

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Chapter 4: Purchase Behavior& Communication

MKTG. 377

February 14, 2013


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HAPPY VALENTINES DAY!

Source: Advertising Age 2-14-13


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Glengarry Glen RossIn-Class Review

3

1. What were the principal ethical predicaments which Sheldon(the Machine) Levene /(Jack Lemmon) and his cohorts faced?

2. How could Levenes extenuating circumstances justifyhis actions (or could they?)

3. What types of external pressures influenced thesalespeoples unethical selling practices?

4. How did the sales-manager, John Williamson (KevinSpacey) and top management (Mitch & Murray) foster theseunethical practices?

5. How did Alec Baldwin, the nameless motivationalspeaker address the issue of ethics?

6. How does Dave Moss (Ed Harris) rationalize breaking thelaw?


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Glengarry Glen RossIn-Class Review

4

7. How does George Aaronow (Alan Arkin) violate the rules of ethics?

8. What was unethical about Ricky Romas (Al Pacino) methods in prospecting andclosing James Lingk (Jonathan Pryce)?

9. Why was Ricky Romas handling of Mr. Lingks cancellation unethical?

10. How would you suggest changing the sales environment of Mitch & Murrays realestate business to promote ethical selling practices without compromising overallsales performance?


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According to an actual count byTHE FAMILY MEDIA GUIDE,, how many F-Bombs were

tossed in, GLENGARRY GLEN ROSS?

5

A - < 50

B - < 100

C - < 150

138 F-Bombs

D - > 200


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Now The Sequels...

Glengarry Glen Girl Scout

Glengarry Glen Christmas

Glengarry Glen Ross Jr.


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Glengarry Glen Ross Even Returnedto Broadway Last December

With Al Pacino returning to play the Shelly Levene role instead of

Ricky Roma 30 years later


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Whats Alec Baldwins Newest

Opportunity...

Moving from Brass Balls to Schweddy Balls

On Saturday Night Live

Ben & Jerrys Introduces New Schweedy Balls Flavor


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What youll learn about today

1. Determine the differences between individual and organizationalbuyers.

2. Learn environmental influences on the purchase decision process.

3. Find out what goes into the successful sending and receiving of amessage.

4. Examine methods for overcoming communication barriers.

5. Understand the importance of using the voice as a communicationtool.

6. Explore the effects of body language and proxemics in selling.

Chapter 4: Purchase Behavior &

Communication:


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What do President Abe Lincoln &Gene Simmons have in common?


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They both employed the

KISS Method KISS

When President Lincolnneeded to communicatewith his countrymen, he

K EPT

I T

S IMPLE,

S TUPID


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Lincolns Gettysburg Address

Contained 268 words

198 were one syllablewords

50were two syllablewords

Only 20words hadmore than two syllables

Small words really work!


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Consumer Behavior Defined

Consumer behavioris the set of actions that

make up an individualsconsideration,

purchase & useofproducts and services.

This includes both thepurchase as well as theconsumption of thoseproducts and services.


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The Purchase Decision Process

External

Evaluation of

The Purchase

Post urchase

Internal Search

The Search for

Problem


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May occur when thecustomerreceivesinformation from advertisingor from conversation with

friends that causesawareness of need

In Relationship Selling,sometimes hinges on theSalespersons ability touncover a need

The 5 Step Purchase Decision Process

Or may occur when theconsumerre-evaluates thecurrent situation andperceives an area of void ordissatisfaction


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Limited By: Your sense of urgency

Timing

Your past experiences

The risk involved withmaking this purchase

The cost of the purchase


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All customers have specificcriteria for making theirdecision

Choice Criteria is what theSalesperson MUST identify

Focus your efforts on the

Prospects choice criteria



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Several alternatives may seemequally acceptable

Can be made easier by aprofessional salesperson

Involves a set of relatedcriteria Tangible features of the product

Financial considerations: price,

discounts, credit policies Intangible factors: reputation,

past performance, or deliverydates


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Cognitive Dissonance is.

Post-Purchase Anxiety

or Buyers Remorse

The level of anxietydepends on theimportance of thedecision and theattractiveness of rejectedalternatives

A Relationship Salesperson can reduce this by: Reinforcing the buyers belief that the right

decision was made Demonstrating the capabilities and quality of

the product


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External

Search

3 - Evaluation ofAlternatives

4- The PurchaseDecision

5 - Posturchase

Internal

Search

2 - The Search forAlternatives

1 - ProblemRecognition


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External Search

(Extensive, Limited)

3 - Evaluation of Alternatives

4- The Purchase Decision

Internal Search

(Habitual, Routine)

2 - The Search for Alternatives

1 - Problem

Recognition

(Motive Arousal)

5 - Post Purchase Evaluation


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A MUSICAL INTERLUDE


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Influences on the PurchaseDecision Process

3 Types1. Behavioral Influences

2. Psychological Influences

3. Socio-cultural Influences


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Influences on the PurchaseDecision Process

Psychological Influences:1. Perception

2. Mood of the Moment3. Attitude

Attitudes are habitual patterns of response to previousexperiences

A negative attitude must be overcome before a sale

can be made Attitudes are the minds paintbrush

They can color or affect any situation


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Psychological Influences

4. Self-Image

In communicating with a Prospect, what they believe is true is often more

important, than what is true Self image is an individuals unique and personal self-appraisal at any given

moment in time.

Self-image impacts the problem recognition phase of consumer behavior

Many of our permanent beliefs about our self-image are developed in ourchildhood


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Socio-cultural Influences

Culture is an influence that is a completely learned andhanded-down way of life

1. Culture2. Global / MNC business considerations

3. Physical Environment

4. Social Class Impacts the information search phase of consumer behavior Advertising campaigns must differ in their attempts to reach the

various social classes


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Socio-cultural:

Doing Business in China The Business Meeting

Always show up on time

If you are running late, call

Chinese tend to call to let you knowthey arrived

Handle Business Cards with twohands

Never write on the card

Use honorifics / titles (drop thevice from Pres.)

Guanxi (Gift-giving) Essential part of building connections

Call ahead to ensure that both partiesare giving gifts

Personal touch is nice but status labelsare nicer

Large gifts being given usually mean big

favors


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Socio-cultural:

Doing Business in China Wining & Dining

Usually involves several meals,because relationships take time tonurture

Thoughtfulness and patience

Remember details including properpronunciation of Chinese names,schooling

Minimize your drinking (or else delaynegotiations)

Karaoke Hostesses are part of the

experience

Chinese take Karaoke veryseriously

After they sing, praise them


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Organizational Buying Versus

Consumer Buying - Key Differences Organizational Buyers

Decision Maker- usually abuying center

Buying Criteria - morecomplex

Strategic Business Alliances- longer lasting

Buying Motivation - rational,economic or emotional

Characteristics Fewer in number

Purchases usually involve largerdollar volume

Less freedom of decision


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Consumer BuyingMotives

1. Increase wealth

2. Alleviate fear

3. Secure social approval

4. Satisfy bodily needs5. Experience happiness or

pleasure

6. Gaining an advantage

7. Imitating

8. Dominating others

9. Recreation

10. Improving health

OrganizationalBuyingMotives

1. Profit

2. Economy

3. Flexibility

4. Uniformity of output5. Salability

6. Protection

7. Utility

8. Guarantees

9. Delivery10. Quality


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Several people involved directly orindirectly in the decision making

process The Buying Center

1. Users

2. Buyers3. Influencers4. Gatekeepers5. Decision Makers

Multiple BuyingInfluences


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For Organizational Buyers, most of

their purchase decisions are based on

rational buying motives rather thanemotional motives

Decisions are usually made afterextensive research and analysisconcerning the product and the sellingcompany prior to purchase

Organizational Buying Motives


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The Communications Agenda

1 - Source The sender of the message

2 - Encoding the message Achieved through the use of symbols

3 - The message itself

4 - Evaluating the prospects decoding of the message Did they get it?

The Channels Which Communications MustFlow Through:


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Verbal Skills(Clarify Meaning)

Nonverbal Skills(Read)

Source Receiver

The Communication Model forVerbal and Nonverbal Messages

Encoding(Implications)

Decoding(Inferences)

Message(Actions)

Verbal/Nonverbal(Noise)


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Verbal SkillsNoise Reduction

Communication Barriers

1. Choice of Words

2. Possible Distractions

3. Timing of Meeting

4. Interruptions

5. Info Overload


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Verbal Skills: Using YourVoice as a Sales Tool

1. Clarity or Articulation

2. Volume3. Silence

4. Rhythm

5. Rate of Speech


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Words

Tone ofVoice

Visual

% of Total Impact

Ability to

Control

7%

55%

38%

High

Medium

Low

The Ability to ManageCommunication Dimensions


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Visual communication expressesthe majority of a persons feelingsand emotions

Body Language Includes facial expressions,

shifts in posture and stance, andmovement of body limbs

Understand the BodyLanguage of Gestures

Body Signals

Hand Movements

Non-Verbal Skills:Selling Without Words


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Watch for these signs that the prospect iseithernot understanding ornot acceptingthe message:

Rubbing the nose

Resting the head in the hands with elbows

on the desk

Finger under collar or rubbing back of neck

Warning Signals


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Successful salespeople movecloser to a client when closing

It is best to carefully test for aprospects comfort zone

Comfort zones tend to changewith sex, status, or age

Four to twelve feet could be agood distance in which to

begin a sales interview The intimate zone should be

entered only by invitationor during a handshake


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For Tuesday, February 19th

Read Chapter 5 - FINDING YOURSELLING STYLE

Type a one paragraph summary on whatyour own Primary & Secondary SellingStyles are and why.

Ill collect at the end of class

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Chap. 4 - Purchase Behavior 2-14-13

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