chapter 8

The Buying Process and Buyer Behavior

Chapter Overview

  • Focus on understanding the buying process and buyer behavior as illustrated in Chapter 8 of MKT 4113.

Learning Objectives

  1. Discuss the meaning of a customer strategy.
  2. Explain the difference between consumer and business buyers.
  3. Understand the importance of alignment between the selling process and the customer’s buying process.
  4. Understand the buying process of transactional, consultative, and strategic alliance buyers.
  5. Discuss the various influences that shape customer-buying decisions.

What is a Customer Strategy?

  • Definition: A Customer Strategy is a carefully conceived plan that enables salespeople to understand the buying process and maximize customer satisfaction and responsiveness.
  • Quote from Jerry Acuff: "In order to think like a buyer, salespeople must understand the buying process and focus on what the customer is looking for."

Consumer vs. Business Buyers

Differences Between Consumer and Organizational Buyers

  • Consumer Buyers

    • Purpose: Purchases for individual or household consumption.
    • Decision-makers: Usually made by individuals.
    • Buying Criteria: Based often on brand reputation or personal recommendations, with minimal product expertise.
    • Decision Process: Individual purchasers often take quick decisions.
    • Emotional Response: Purchases are based on emotional responses to product or promotions.
    • Products: Typically involve consumer goods and services for individual use.

  • Organizational Buyers

    • Purpose: Purchases made for purposes other than personal consumption, often for businesses.
    • Decision-makers: Decisions frequently involve multiple people within an organization.
    • Buying Criteria: Purchases made according to technical specifications based on product expertise.
    • Decision Process: Involves a lengthy decision-making process.
    • Rational Criteria: Purchases are based primarily on rational criteria.
    • Products: Often complex and categorized by how organizational customers utilize them.

Types of Business Buying Situations

  • There are three major types of business-to-business (B2B) buying situations:
    1. New-Task Buy: A new purchase requires complete evaluation of suppliers and alternatives.
    2. Straight Rebuy: A routine reorder of supplies or purchased goods without significant changes.
    3. Modified Rebuy: A purchase in which the buyer modifies product specifications, price, or other terms.

Types of Consumer Buying Situations

  • Habitual Buying Decisions: Purchases made out of habit rather than for a specific reason.
  • Variety-Seeking Decisions: Occurs when consumers seek variety and may switch brands for different experiences.
  • Complex Buying Decisions: Involves high involvement and significant thought in the purchase, often due to complexity, risk, or purchasing a high-cost item.

Steps in the Buying Process

  1. Needs Awareness: Recognition of a need exists.
  2. Evaluation of Solutions: Exploring available options to satisfy the recognized need.
  3. Resolution of Problems: Addressing concerns or hesitations regarding the options available.
  4. Purchase: The actual transaction and execution of buying.
  5. Implementation: Using the bought solution and ensuring it meets the needs addressed.

Buying vs. Selling Process Models

Typical Buying Process Model
  1. Needs Awareness
  2. Evaluation of Solutions
  3. Resolution of Problems
  4. Purchase
  5. Implementation
Steps in the Consultative Sales Process
  • Needs Discovery: Identifying needs through questions and conversation.
  • Product Selection: Choosing an appropriate product to meet those needs.
  • Need Satisfaction: Presenting solutions to the customer.
  • Service Approach: Establishing a connection and addressing customer queries.
  • Presentation: Clearly presenting the product or service and its benefits.
  • Negotiations: Discussing terms and finalizing details.
  • Close: Finalizing the transaction and concluding sales.
  • Service: Post-sales support and customer service to ensure satisfaction.

The Buying Process and Buyer Types

Value-Creation Selling Approaches
  1. Transactional Process Buyer: Focused on the purchase stage.
  2. Consultative Process Buyer: Concentrates on identifying needs and evaluating solutions.
  3. Strategic Alliance Process Buyer: Involves detailed examination of proposed partnerships.

Buyer Resolution Theory: The 5 W’s

  • Buyer Resolution Theory provides a framework recognizing that a purchase is concluded after the customer has made affirmative decisions on:
    1. Why Should I Buy?: The need for a product must be established and communicated effectively.
    2. What Should I Buy?: The salesperson should provide compelling reasons for the product over competitors.
    3. Where Should I Buy?: As products grow complex, the source of purchase becomes crucial.
    4. What Is a Fair Price?: Consumers assess the price against their perceived value; they seek fair and competitive pricing.
    5. When Should I Buy?: Timing is essential; customers may delay purchases due to hesitations or external factors.

Influences that Shape Customer Buying Decisions

Framework of Influences
  • Customer Perceptions: Formulation of perceptions and motives based on experiences and expectations.
  • Basic Needs: Different motivations driving the purchase decision.
  • Group Influences: The impact of social groups and peer behaviors on buying.
  • Emotional and Rational Buying Motives: Different types of motives influencing consumer behavior.
Maslow's Hierarchy of Needs
  • Self-Actualization
  • Esteem
  • Social
  • Security
  • Physiological
  • Sources adapt processes from Maslow's theory to understand consumer priorities and motivations.

Buying Motives

  • Each buying decision is driven by distinct motives.
Types of Buying Motives
  1. Emotional vs. Rational Buying Motives
    • Emotional Motives: Appeals to feelings or sentiments (e.g., brand loyalty).
    • Rational Motives: Appeals to logical decision-making and analysis (e.g., cost-benefit analysis).
  2. Patronage vs. Product Buying Motives
    • Patronage Buying Motive: Choosing a specific vendor over others.
    • Product Buying Motive: Preference for one product over another based upon qualities.

Understanding the Customer’s Buying Strategy

  • The salesperson's key task is to understand the customer's buying strategy by conducting thorough needs discovery, which involves:
    • Asking appropriate questions
    • Actively listening to responses
    • Observing customer behavior and signals.

Take-Home Study Guide

  • LO 8.1: Explain the meaning and essential components of a customer strategy, highlighting the importance of treating customers differently.
  • LO 8.2: Differentiate between consumer and business buyers, understanding their distinct decision-making processes.
  • LO 8.5: Identify and discuss the various factors that influence customer buying decisions and their implications.