8

The Buying Process

and Buyer Behavior
Learning Objectives
 Discuss the meaning of a customer strategy
 Explain the difference between consumer and business buyers
 Understand the importance of alignment between the selling process
and the customer’s buying process
 Understand the buying process of the transactional, consultative, and
strategic alliance buyer
 Discuss the various influences that shape customer buying decisions

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Today’s Customers
 Use the Internet to get instant, comprehensive information
 Have immense choices from every corner of the world
 Can get real-time price comparisons

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Jerry Says… On Customer Strategy
 Jerry Acuff, author of Stop
Acting Like a Seller and
Start Thinking Like a Buyer,
says,
 “In order to think like a
buyer, salespeople must
understand the buying
process and focus on
what the customer is
looking for.”

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What is a Customer Strategy?
 A customer strategy is a carefully conceived plan that
results in understanding the customer’s perceptions and
maximizing customer satisfactions and responsiveness.
 Itrequires that salespeople
 Understand the buying process
 Understand buyer behavior
 Develop a prospect base

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 Figure 8.2 B2C and B2B Buyers
Consumer Buyers
 Purchase for individual or
household consumption
 Decisions made by one
 Purchase based on brand
reputation or personal
recommendation
 Purchase based on emotion
 Buyer may have little
product experience
Organizational Buyers
 Purchase for something other
than personal consumption
 Decisions made by many
 Decisions made to meet
precise technical specs
 Purchase is rational
 Decision may be slow and
complex
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Types of Business Buying Situations

A first-time purchase of a product

or service is a new-task buy.
New-Task Buy Depending on the cost and complexity of this purchase,
the buying decision may require several weeks of
information gathering and the involvement of numerous
decision participants. In some cases, a

Straight Rebuy buying committee is formed to consider the new

product’s quality, price, and service provided
by suppliers. Salespeople
who are involved
in new-task buying situations must rely
Modified Rebuy heavily on consultative selling skills.

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Types of Business Buying Situations

A straight rebuy is a routine purchase of

items needed by a business-to business
New-Task Buy customer.
Organizations often use the straight rebuy
approach
for such items as
Straight Rebuy cleaning supplies,
copy paper, and
cartridges for computer printers.

Modified Rebuy Salespeople must constantly monitor every

straight rebuy situation to be sure the customer is
completely satisfied.

A competing supplier will be quick to exploit any

sign of dissatisfaction by the customer. 8-8
Types of Business Buying Situations

New-Task Buy

Straight Rebuy

Modified Rebuy

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 Types of Consumer Buying Situations

Habitual buying decisions usually require very

little consumer involvement and brand
Habitual differences are usually insignificant.
For frequently purchased, low-cost
Variety-Seeking items such as
shampoo,
copy paper, or

Complex Buying laundry detergent,

consumer involvement in the decision-making

process is very low.

Supermarket shoppers often display habitual buying behavior as

they select items.

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 Types of Consumer Buying Situations

Habitual
Variety-seeking buying decisions are
Variety-Seeking characterized by low customer involvement,
but important perceived brand differences
Complex Buying

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 Types of Consumer Buying Situations

Habitual
Variety-Seeking Complex buying decisions are
characterized by a high degree of
Complex Buying involvement by the consumer. Consumers
are likely to be highly involved when the
product is expensive, purchased
infrequently, and highly self-expressive

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 Steps in the Typical Buying Process
The need for energy conservation technology may surface
 Needs awareness when oil prices rise to higher levels.

 Evaluation of solutions The need for a customer service training program may
become evident when customer satisfaction survey scores
 Resolution of problems decline.

Salespeople can create value at this stage of the buying

 Purchase process if they can help determine the magnitude of the
customer’s problem and identify a solution.
 Implementation
For example, a sales representative may be able to help the
buyer estimate the cost of poor customer service and
recommend a way to improve service. Customers often need
help in determining whether they have a problem large
enough to justify the cost of a solution.

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 Steps in the Typical Buying Process
 Needs awareness
 Evaluation of solutions
 Resolution of problems
 Purchase
 Implementation
Salespeople can add value at this stage by providing
useful information that helps the customer make an informed
choice.
In some cases, the value justification can be presented in terms
of cost reduction or increased revenues.
In other cases, the value justification may be an intangible such
as customer satisfaction, improved security, or reduced stress.
In business-to-business selling situations, value justification that
can be measured is usually the most powerful.
To establish a true partnership with the customer, you need to be
sure that you are offering them information that will help them
achieve their objectives.
If you possess a good understanding of the customer’s buying
process, you will know what they are trying to accomplish
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 Steps in the Typical Buying Process
 Needs awareness
 Evaluation of solutions
 Resolution of problems
 Purchase
 Implementation
• Some customers will want the proposed solution put in
writing. Competitors may be invited to submit written
proposals.
• Some customers may request specific information that can
be provided only by the supplier’s engineers or accountants.
• Other customers may insist on visiting the supplier’s
manufacturing plant so they can see the production process
firsthand.
• Buyers often need help overcoming obstacles that prevent
them from moving to the purchase stage of the buying
process
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 Steps in the Typical Buying Process
 Needs awareness
 Evaluation of solutions
 Resolution of problems
 Purchase
 Implementation
Professional salespeople create value in many ways at this
stage of the buying process.
First, they do whatever is necessary to make sure the purchase
is “hassle free.” This may mean working with the customer to
arrange the best financing or supervising the delivery and
installation of the product.
Salespeople add value by becoming a “customer advocate”
within their own organizations. This may mean negotiating with
various departments to expedite the order. Buyers want to work
with salespeople who are able to quickly solve any order
fulfillment problems.
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 Steps in the Typical Buying Process
 Needs awareness
 Evaluation of solutions
 Resolution of problems
 Purchase
 Implementation
The first sale is only the beginning of the relationship with
the buyer.
Repeat sales occur when the supplier has demonstrated the
ability to add value in various ways after the sale.
Value creation can take the form of
1. timely delivery,
2. superior installation,
3. accurate invoicing,
4. follow-up contacts by the salesperson, or
5. something else that is important to the customer
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Figure 2.2 Consultative Sales Presentation Guide
The customer is seen as a person to be served, not a prospect to be sold. Consultative salespeople
believe their function is to help the buyer make an intelligent decision.
They use a four-step process that includes need discovery, selection of a solution, a need–satisfaction
presentation, and servicing the sale (Figure 2.2).

Need-
Need Selection of Servicing the
satisfaction
discovery solution sale
presentation

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 Steps in Sales Processes

Consultative Sales Process Six-Step Presentation Process

 Needs discovery  Approach
 Product selection  Needs discovery

 Need satisfaction  Presentation

 Service
 Negotiations
 Close
 Service
You as Buyer, You as Seller
Buyer Process
 Needs awareness
 Evaluation of solutions
 Resolution of problems
 Purchase
 Implementation
Sales Process Imagine you are making a somewhat
complex purchase.
Perhaps you are considering the purchase
 Approach of a home automation system that will
enable you to control your electrical
 Needs discovery systems at home (including televisions,
coffee pots, alarms, and more) from your
 Presentation mobile phone.
The system is complex and expensive but
 Negotiations also offers many benefits.
 Close Walk though the steps you’d take as well as
what your salesperson should do as you
move through the process. Use the steps in
 Service the slide to facilitate your journey.
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 Needs awareness
 Evaluation of solutions
 Resolution of problems
 Purchase
 Implementation
Transactional Process Buyer
In a true transactional sale, buyers will become frustrated
if the salesperson attempts to use needs assessment, problem
solving, or relationship building. They are not looking for new
information or advice from the salesperson.
How can a salesperson add value to a transactional sale?
salesperson needs to focus on the purchase stage of the five-
part buying process model (see Figure 8.3).
Do whatever is necessary to facilitate a
• convenient and hassle-free purchase.
• Eliminate any unnecessary costs or delays in processing the
order.
• The transactional buyer may quickly turn to a competitor
• if they experience unnecessary costs or delays.
 Consultative Process Buyer
 Needs awareness
The purchase of a new home provides a
 Evaluation of good example in the consumer arena.
solutions Home buyers usually seek the assistance
 Resolution of of an experienced realtor.
problems
 Purchase

 Implementation
 Consultative Process Buyer
The purchase of Internet phone-calling equipment
provides a good example in the business-to-business
 Needs awareness arena. Organizations that are considering the purchase of
complex Internet telephone equipment seek answers to
 Evaluation of several questions:
solutions • Can we keep a portion of our traditional phone
 Resolution network or
of • must we adopt an all–Internet phone system?
problems • Will the new system provide the same voice quality as
our traditional system?
 Purchase
Internet phone-calling equipment is available from
 Implementation several suppliers, including
Avaya Incorporated and
Cisco Systems Incorporated.
Some customers will need help comparing the technology
available from these and other suppliers
 Consultative Process Buyer

 Needs awareness Successful consultative salespeople focus a great

deal of attention on needs awareness, which is
 Evaluation of step one in the buying process model (see Figure
solutions 8.3).
This is where salespeople can create the most
 Resolution of value by helping customers gain an understanding
problems of their problems and create solutions that correct
these problems.
 Purchase
Many customers seek help defining needs and
 Implementation solutions, but avoid dealing with a sales
representative who simply wants to sell a product.
 Consultative Process Buyer
Consultative selling encompasses the concept that
 Needs awareness salespeople should conduct
• a systematic assessment of the prospect’s
 Evaluation of situation.
solutions • This usually involves collecting as much
information as
 Resolution of • possible prior to the sales call and using a
problems series of carefully worded questions to obtain
the customer’s point of view during the sales
 Purchase call.
• Two-way communication will provide for a
 Implementation
mutual exchange of ideas, feelings, and
perceptions.
 Consultative Process Buyer
The consultative salesperson will help
 Needs awareness the customer evaluate solutions and help
 Evaluation of resolve any problems that surface prior
solutions to the purchase stage.

 Resolution of Consultative salespeople also work hard

problems to add value at the implementation stage
 Purchase of the sales process.
• This may involve supervising product
 Implementation delivery and installation,
• servicing warranties, and
• providing other services after the sale.
Figure 8.4 Buyer Resolution Theory

 Why should I buy? FIGURE 8.4

The buyer resolution theory, sometimes referred to as
 What should I buy? “The 5 W’s Theory,” focuses attention on
questions the customer may need answers to before
 Where should I buy? making a purchase. An absence of an answer to
any of these will likely result in a
customer objection.
 What is a fair price?
 When should I buy?

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 Buying Processes Differ by Culture
 In Japan, decisions are made by group process
 In China, a senior negotiator leads
 In Germany, even for routine decisions, top level leads
 In
Latin America, relationship building occurs before
negotiations

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