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Purchase Behavior and Communication

Learning Objectives Determine the differences between individual and

organizational buyers. Learn environmental influences on the purchase decision

process. Find out what goes into the successful sending and

receiving of a message. Examine methods for overcoming communication barriers. Understand the importance of using the voice as a

communication tool. Explore the effects of body language and proxemics in

selling.

Chapter 4

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Contained 268 words

198 were one syllable words

50 were two syllable words

Only 20 words had more than two syllables

Small words really work!

Lincoln’s Gettysburg Address

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Consumer behavior is the set of actions that make up an individual’s consideration,

purchase, and use of products and services. This includes the purchase as well

as the consumption of the products and services.

Consumer Behavior

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The Purchase Decision Process

External Search(Extensive,

Limited)Evaluation of Alternatives

The Purchase Decision

Postpurchase Evaluation

Internal Search(Habitual, Routine)

The Search for Alternatives

Problem Recognition

(Motive Arousal)

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(A 5-Step Process)

I. Problem Recognition (Motive Arousal) May occur when the customer receives

information from advertising or from conversation with friends that causes awareness of need

In relationship selling, sometimes hinges on the seller’s ability to uncover a need

May occur when the consumer re-evaluates the current situation and perceives an area of void or dissatisfaction

The Purchase Decision Process

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(A 5-Step Process)The Purchase Decision Process

2. Search for AlternativesLimited By:

Time and cost Experience and urgency Value of purchase Risk involved in the purchase3. Evaluation of Alternatives Evoked Set is the list of alternatives Salient attributes are used to evaluate products Determinate attributes are motives used to make a decision

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(A 5-Step Process)

4. Purchase Decision Several alternatives may seem equally

acceptable Can be made easier by a professional

salesperson Involves a set of related criteria

Tangible features of the product Financial considerations: price, discounts, credit policies Intangible factors: reputation, past performance, or delivery dates

The Purchase Decision Process

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(A 5-Step Process)

5. Postpurchase EvaluationCognitive Dissonance is….

The level of anxiety depends on the importance of the decision and the attractiveness of rejected alternatives

A seller can reduce this by: Reinforcing the buyer’s belief that the right decision was

made Demonstrating the capabilities and quality of the

product

The Purchase Decision Process

Postpurchase Anxiety

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Psychological Influences: The role of perception Mood of the moment Attitudes

Attitudes are habitual patterns of response to previous experiences

A negative attitude must be overcome before a sale can be made

Attitudes are the mind’s paintbrush. They can color or affect any situation

Influences on the Purchase Decision Process

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How Many Squares Do You See?

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Self-image impacts the problem recognition phase of consumer behavior

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

Advertisements that are consistent with our self-image are more persuasive

Self-image and public-image are not always the same

Much behavior can be explained if the self-image is understood

The Self-Image

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

Cross-culture business considerations Physical Environment Social Class

Impacts the information search phase of consumer behavior

Advertising campaigns must differ in their attempts to reach the various social classes

Reference Groups

Sociocultural Influences

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Some fundamental differences For Organizational Buyers…

Decision Maker - usually a buying center Buying Criteria - more complex Buying Motivation - rational, economic, and/or

emotional Characteristics of Organizational Buyers

Fewer in number Purchases involve larger dollar volume Less freedom of decision

Organizational Buying Versus Consumer Buying

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Organizational Buying Versus Consumer Buying

Ultimate Consumer Buying

MotivesOrganizational Buying Motives

Profit Economy Flexibility Uniformity of output Salability Protection Utility Guarantees Delivery Quality

Increase wealth Alleviate fear Secure social approval Satisfy bodily needs Experience happiness or

pleasure Gaining an advantage Imitating Dominating others Recreation Improving health

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Multiple Buying Influence Several people involved directly or indirectly in

the decision making process The Buying Center

Users Buyers Influencers Gatekeepers Decision Makers

Multiple Buying Influence

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For organizational buyers, more of the decisions are based on rational buying motives rather than emotional motives

Research and analysis concerning the product and the company conducted prior to purchase

Organizational Buying Motives

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The Channels Through Which Communication Must Flow:

The Communication Agenda

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The Communication Model for Verbal and Nonverbal Messages

Verbal Skills(Clarify Meaning)

Nonverbal Skills(Read)

Source ReceiverEncoding(Implication

s)

Decoding(Inferences)

Message

(Actions)

Verbal/Nonverbal

(Noise)

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Words chosen Possible distractions Timing of meeting Interruptions Technical Erudition Poor listening habits Make use of feedback

Barriers to Effective Communication

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Clarity or Articulation

Volume Uniqueness Silence Rhythm Rate of Speech

The Use of the Voice

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The Ability to Manage Communication Dimensions

Words

Tone of Voice

Visual

% of Total Impact

Ability to Control

7%

55%

38%

High

Medium

Low

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(Nonverbal Communication)

Visual communication expresses the majority of a person’s feelings and emotions

Body Language Includes facial expressions, shifts in posture and

stance, and movement of body limbs

Selling Without Words

Understand the Body Language of Gestures

Hand Movements

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Rubbing the nose Resting the head in the hands with elbows

on the desk

Warning Signals

Watch for these signs that the prospect is either

not understanding or not accepting the message:

Finger under collar or rubbing back of neck

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Successful salespeople move closer to a client when closing

It is best to carefully test for a prospect’s comfort zone Comfort zones tend to change with sex, status, or age Four to twelve feet could be a good distance in which

to begin a sales interview The intimate zone should be entered only by invitation

or during a handshake

Proxemics

Proxemics: The physical distance individuals prefer

to maintain between themselves and others