Sales Chapter 3 Exam 1

customer engagement

the connection between the salesperson, the selling firm, and the customer; starting point for relationships

new task purchase

new to customer; high importance; high information needs; many participants

straight rebuy purchase

routine repeat purchase; low information; short timeline; low participants

modified rebuy purchase

mix of new task and straight rebuy; moderate information and timeline; often high importance

initiator

first recognizes the need and begins the search for a solution

product user

uses the product daily; focuses on function

influencer

helps set priorities and gives opinions about solutions

decider

makes the final choice

purchaser

negotiates the final terms and completes the purchase

gatekeeper

controls access to buying team members; technology can fill this role

problem recognition, information search, evaluation of alternatives, supplier solution decision, post purchase evaluation

5 step buying decision process

problem recognition

customer realizes a need exists

latent need

a need the customer does not yet recognize; a salesperson may identify it

information search

customer gathers information and identifies possible suppliers

evaluation of alternatives

customer compares competing solutions

supplier solution decision

customer selects a vendor

post purchase evaluation

customer assesses whether the seller and solution deliver as promised

sales person owned loyalty

loyalty belongs more to the salesperson than the firm; customer may follow the salesperson if they leave

constrained loyalty

customer is loyal because of a contract/ restriction

affective loyalty

customer has a genuine emotional attachment to salesperson/firm

spurious loyalty

customer stays out of habit, convenience, or lack of reason to change

trust

people buy from people they

character and competence

A trusted advisor builds trust through both

character-based/ personal trust

candor, integrity, likability, dependability

connect —> like —> trust

Personal trust

credibility —> respect —> trust

Professional trust

Competence based/ professional trust

customer, company, competitive, industry knowledge

high character and low competence

customer likes the salesperson but lacks confidence in the solution

low character and high competence

customer questions the salesperson’s motives but thinks they are knowledgeable

awareness, exploration, expansion, commitment, dissolution

customer relationship life cycle

customer orientation

placing the customer’s interests ahead of the company’s short term interests