Chapter 3 Flashcards
what is the blackbox approach?
internal process of consumer mind when they choose to/not to buy
what is the stimulus response model?
process of applying stimulus that results in a response (ex: sales presentation to purchase decision)
write a stimulus response model
stimulus –> black box –> response
what is consumer buying?
purchasing for individual and family use, B2C, little interaction before decision is made
what is organizational buying?
all activities of organizational members as they define a buying situation and identify, evaluate, choose among alternate brands and suppliers
what is the motivation to purchase?
lack of something or a “gap”
what is an economic need?
buyers need to purchase most satisfying product for their money
what are the three levels of awareness for buyers?
- conscious need level
- preconscious need level
- unconscious need level
what is the conscious need level?
buyers fully aware of their need, easiest people to sell to because they know what they want
what is the preconscious need level?
not fully aware of needs, they know general type of product but do not wish to fullu discuss it
what is the unconscious need level?
people do not know why they buy a product, only that they do buy it, impulse
what are the three classes of a buying situation?
- routine decision making
- limited decision making
- extensive decision making
what is routine decision making?
low involvement, the habit of buying a product, and you have positive beliefs about it. usually a 5 minute decision
what is the extensive decision making situation?
buyers unfamiliar with a product and who must be involved in the buyer decision process, high involvement, 1 hour decisions. major / impactful decisions need 1 week to decide
what is the consumer buyer decision process?
- need
- collect info
- info evaluation
- purchase decision
- post purchase behavior
what is need arousal?
salesperson triggers psychological, social, or economic need in a buyer
what is information evaluation?
determines what will be purchased as the buyer matches the info with needs beliefs and attitudes
what are personal decision influences?
age, gender, situation, income
what are psychological decision influences?
past experiences, personality, attitudes, beliefs, perception
what are social decision influences?
culture, social class, friends, family
what is purchase dissonance?
tension on the part of the buyer regarding whether the right decision was made in purchasing a product
what is organizational buying process?
problem solving process a firm uses to meet its goals and objectives as it relates to making purchases. often multiple people involved, B2B
what are the 5 steps when making a buying decision?
- define the problem
- establish decision criteria
- identify alternatives
- evaluate alternatives
- select appropriate solutions
what is an organizational buying situation?
firms perception or need of a business problem
what is a buying center?
a group of people performing the buyer process based on their knowledge and responsibilities (ex: user, buyer, decider, influencer, gatekeeper)
what are the 3 factors that influence organizational buying process?
- individual influences
- social influences
- organizational climate
what are individual influences?
people in buying center and their personalities and beliefs
what are social influences?
interpersonal relationships and interactions among and between buying center people
what is the organizational climate?
goals, working environment, culture, and financial obligations of the organization
what is benefit selling?
when a salesperson relates a products benefits to the customers needs using product features and advantages as support
what is a feature?
physical characteristic of a product
what is an advantage?
a performance characteristic, explains how it can be used to help the buyer
what is a benefit?
a favorable result the buyer receives from the product
3 examples of FAB
- the feature means you advantage with the real benefit of you being benefit
- the feature enables your firm to advantage which means the value to you is benefit
- the feature creates blank for your firm advantage thereby creating value to your firm by benefit
“20% more miles to the gallon” F, A, or B?
A
“lasts twice as long” F, A, or B?
A
“saves time work and money” F, A, or B?
B
what is the trial close?
a question that checks attitude and understanding of your prospect in regards to the sales presentation or elements, opinion not decision
4 uses for a trial close
- after strong selling point
- after presentation
- after answering objection
- immediately before you move to a close
what is a SELL sequence ?
show the feature
explain the advantage
lead into benefit
let customer talk
what should the SELL sequence do?
provide the salesperson a solution to a specific buyer need, shows how feature produces a valuable benefit for the buyer
what should sales reps know about the prospective customer?
MADT: money, authority, desire, timeframe
