Chapter 3

Question 1

what is the blackbox approach?

Answer 1

internal process of consumer mind when they choose to/not to buy

Question 2

what is the stimulus response model?

Answer 2

process of applying stimulus that results in a response (ex: sales presentation to purchase decision)

Question 3

write a stimulus response model

Answer 3

stimulus –> black box –> response

Question 4

what is consumer buying?

Answer 4

purchasing for individual and family use, B2C, little interaction before decision is made

Question 5

what is organizational buying?

Answer 5

all activities of organizational members as they define a buying situation and identify, evaluate, choose among alternate brands and suppliers

Question 6

what is the motivation to purchase?

Answer 6

lack of something or a “gap”

Question 7

what is an economic need?

Answer 7

buyers need to purchase most satisfying product for their money

Question 8

what are the three levels of awareness for buyers?

Answer 8

1. conscious need level
2. preconscious need level
3. unconscious need level

Question 9

what is the conscious need level?

Answer 9

buyers fully aware of their need, easiest people to sell to because they know what they want

Question 10

what is the preconscious need level?

Answer 10

not fully aware of needs, they know general type of product but do not wish to fullu discuss it

Question 11

what is the unconscious need level?

Answer 11

people do not know why they buy a product, only that they do buy it, impulse

Question 12

what are the three classes of a buying situation?

Answer 12

1. routine decision making
2. limited decision making
3. extensive decision making

Question 13

what is routine decision making?

Answer 13

low involvement, the habit of buying a product, and you have positive beliefs about it. usually a 5 minute decision

Question 14

what is the extensive decision making situation?

Answer 14

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

Question 15

what is the consumer buyer decision process?

Answer 15

1. need
2. collect info
3. info evaluation
4. purchase decision
5. post purchase behavior

Question 16

what is need arousal?

Answer 16

salesperson triggers psychological, social, or economic need in a buyer

Question 17

what is information evaluation?

Answer 17

determines what will be purchased as the buyer matches the info with needs beliefs and attitudes

Question 18

what are personal decision influences?

Answer 18

age, gender, situation, income

Question 19

what are psychological decision influences?

Answer 19

past experiences, personality, attitudes, beliefs, perception

Question 20

what are social decision influences?

Answer 20

culture, social class, friends, family

Question 21

what is purchase dissonance?

Answer 21

tension on the part of the buyer regarding whether the right decision was made in purchasing a product

Question 22

what is organizational buying process?

Answer 22

problem solving process a firm uses to meet its goals and objectives as it relates to making purchases. often multiple people involved, B2B

Question 23

what are the 5 steps when making a buying decision?

Answer 23

1. define the problem
2. establish decision criteria
3. identify alternatives
4. evaluate alternatives
5. select appropriate solutions

Question 24

what is an organizational buying situation?

Answer 24

firms perception or need of a business problem

Question 25

what is a buying center?

Answer 25

a group of people performing the buyer process based on their knowledge and responsibilities (ex: user, buyer, decider, influencer, gatekeeper)

Question 26

what are the 3 factors that influence organizational buying process?

Answer 26

1. individual influences
2. social influences
3. organizational climate

Question 27

what are individual influences?

Answer 27

people in buying center and their personalities and beliefs

Question 28

what are social influences?

Answer 28

interpersonal relationships and interactions among and between buying center people

Question 29

what is the organizational climate?

Answer 29

goals, working environment, culture, and financial obligations of the organization

Question 30

what is benefit selling?

Answer 30

when a salesperson relates a products benefits to the customers needs using product features and advantages as support

Question 31

what is a feature?

Answer 31

physical characteristic of a product

Question 32

what is an advantage?

Answer 32

a performance characteristic, explains how it can be used to help the buyer

Question 33

what is a benefit?

Answer 33

a favorable result the buyer receives from the product

Question 34

3 examples of FAB

Answer 34

1. the feature means you advantage with the real benefit of you being benefit
2. the feature enables your firm to advantage which means the value to you is benefit
3. the feature creates blank for your firm advantage thereby creating value to your firm by benefit

Question 35

“20% more miles to the gallon” F, A, or B?

Answer 35

A

Question 36

“lasts twice as long” F, A, or B?

Answer 36

A

Question 37

“saves time work and money” F, A, or B?

Answer 37

B

Question 38

what is the trial close?

Answer 38

a question that checks attitude and understanding of your prospect in regards to the sales presentation or elements, opinion not decision

Question 39

4 uses for a trial close

Answer 39

1. after strong selling point
2. after presentation
3. after answering objection
4. immediately before you move to a close

Question 40

what is a SELL sequence ?

Answer 40

show the feature
explain the advantage
lead into benefit
let customer talk

Question 41

what should the SELL sequence do?

Answer 41

provide the salesperson a solution to a specific buyer need, shows how feature produces a valuable benefit for the buyer

Question 42

what should sales reps know about the prospective customer?

Answer 42

MADT: money, authority, desire, timeframe