Ch 2: Building Trust and Sales Ethics Flashcards
Define trust
The extent of the buyer’s confidence that they can rely on the salesperson’s integrity
Why is trust important
Trust is positively related to purchase intentions
Long-term relationships develop mutually beneficial outcomes characterized by:
trust, open communication, common goals, commitment to mutual gain and organizational support
How do sales people earn trust
> Expertise: the ability, knowledge, and resources to meet customer expectations.
> Dependability: the predictability of a person’s actions.
> Candor: honesty of the spoken word.
> Customer orientation: the act of salespeople placing as much emphasis on the customer’s interests as their own.
> Compatibility: a salesperson’s commonalities with other individuals.
Questions that sales people need to answer in order to earn a buyers trust
Expertise: Does the salesperson know what they need to know? Does the salesperson and their company have the ability and resources to get the job done right?
Dependability: Can I rely on the salesperson? Does the salesperson keep promises?
Candor: Is the salesperson honest in their spoken word? Is the salesperson’s presentation fair and balanced?
Customer Orientation: Does the salesperson truly care about the partnership? Will the salesperson go to bat for the customer (e.g., wrong order, late delivery)?
Compatibility: Will the buyer like doing business with the salesperson? Will the buyer like doing business with the salesperson’s company?
Name and explain the ‘knowledge bases’ that help build trust and relationships
- Competitor knowledge: Knowledge of a competitor’s strengths and weaknesses in the market.
- Product knowledge: Detailed information on the manufacture of a product and knowing whether the company has up-to-date production methods.
- Service issues/knowledge: Concerns of the buyer that the salesperson should address.
- Promotion knowledge: Knowledge tools salespeople must possess to explain their firms’ promotional programs.
- Price knowledge: Knowledge tools salespeople must have about pricing policies in order to quote prices and offer discounts on products.
- Market knowledge: Information salespeople must have if larger companies break their customers into distinct markets; salespeople must be familiar with these markets to tailor their sales presentations.
- Customer knowledge: Information about customers that is gathered over time and from very different sources that helps the salesperson determine customer needs to better serve them.
- Technology knowledge: Information salespeople must have about the latest technology.
Define ethics
The right and wrong conduct of individuals and institutions of which they are a part.
What are ways in which salespeople can create product liabilities for companies
> Express warranty: Giving a product warranty or guarantee that obligates the selling organization even if the salesperson does not intend to give the warranty.
> Misrepresentation: False claim(s) made by a salesperson.
> Negligence: False claim(s) made by a salesperson about the product or service they are trying to sell.
What is basis of the bargain
When a buyer relies on the seller’s statements in making a purchase decision
