• CHAPTER 4
    CONSUMER BEHAVIOR
    AND
    THE COMMUNICATION AGENDA

    Lincoln's Gettysburg Address
    268 words
    196 One Syllable Words
    52 Two Syllable Words
    20 More Than Two Syllable Words
    Small words work!
    Buzz Words Don't work
    buzzwords.gif (4736 bytes)

  • Consumer Behavior
    Consumer behavior
    • The set of actions that make up an individual's consideration, purchase and use of products and services.
    • Includes the purchase as well as consumption of the products and services.
    You, the seller must be able to determine
    • What is motivating the customer to buy. This enables you to convert features into benefits for that particular individual
    • In which step of the purchase decision process is the buyer.

  • THE PURCHASE DECISION PROCESS
    Problem Recognition decision_process.gif (8804 bytes)
    1. May occur when the consumer receives information from advertising or from conversation with friends that causes awareness of a need.
    2. In consultative selling sometimes hinges on the seller's ability to uncover a need.
    3. May occur when the consumer reevaluates the current situation and perceives an area of void or dissatisfaction.
    4. No matter what kind of need exists some prospects do not consciously recognize it until the seller brings it out into the open.
    Search for Alternatives - Limited By
    1. Time and cost.
    2. Experience and urgency.
    3. Value of purchase.
    4. risk involved in the purchase
    Evaluation of Alternatives
    1. Evoked Set is the list of alternatives
    2. Salient attributes are used to evaluate products.
    3. Determinate attributes are motives used to make a decision.
    Purchase
    Decision
    1. Several alternatives may seem equally acceptable;
    2. Can be made easier by a professional seller
    3. Involves a set of related decisions.
    4. Decision criteria
      1. Tangible features of the product.
      2. Financial considerations such as price, discounts, credit policies, etc.
      3. Intangible factors: reputation, past performance of the seller, possible delivery dates, etc.
    Postpurchase Evaluationdissonance.gif (5412 bytes)
    Cognitive Dissonance
    aka
    "Buyers Remorse"
    • post-purchase anxiety
    • Depends upon the importance of the decision and the attractiveness of rejected alternatives.
    Minimize
    • by selling products that meet needs,
    • by reinforcing the buyer's belief that the right decision was made
    • by demonstrating the capabilities and quality of the product,
    • By post purchase follow-up to be sure that deliveries are prompt, quantities are correct, and the product is functioning as expected.

  • Business to Business Buying
    Some Fundamental Differences Decision Maker
    • May be a buying center
    Buying Criteria
    • More complex
    Buying Motivation
    • rational
    • economic
    • emotional
    Characteristics of Organizational Buyers
    • Fewer in number,
    • Purchases involve larger dollar volume
    • Less freedom of decision
    Categories of Organizational Buyers
    • Industrial
    • Wholesale & Retail
    • Government
    Purchase policies
    • set by companies provide guidelines concerning
    • performance, service, quality etc.
    • Product or service must meet these criteria
    Multiple Buying Influence
    • Several people involved directly or indirectly in the decision making process.
    • Many times dollar limits are set and exceeding these limits requires the approval of higher level executives.
    The Buying Center
    • Users.
    • Buyers.
    • Influences.
    • Gatekeepers.
    • Decision Makers.
    Buyer and Boss Talking
    Buying
    Motives
    • More of the decisions are based on rational buying motives rather than emotional motives.
    • Research and analysis concerning the product and the company selling it is often conducted prior to purchase.

  • Ultimate Consumer Buying Motives Ultimate Organizational Buying Motives
    • Increase wealth
    • Alleviate fear
    • Secure social approval
    • Satisfy bodily needs
    • Experience happiness or pleasure
    • Gaining an advantage
    • Imitating
    • Dominating others
    • Recreation
    • Improving health
    • Profit
    • Economy
    • Flexibility
    • Uniformity of output
    • Salability
    • Protection
    • Utility
    • Guarantees
    • Delivery
    • Quality

  • ENVIRONMENTAL INFLUENCES ON THE PURCHASE DECISION PROCESS
    Psychological Influences
    The Role of Perception Illusions
    count_the_dots.gif (8771 bytes)
    Mood of the Moment
    Attitudes
    • Buyer is not always consciously aware of attitudes.
    • Attitudes are habitual patterns of response to previous experiences.
    • Preconceived attitudes do not always make the selling process difficult.
    • 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.
    Self-image
    • self-image impacts the problem recognition phase of consumer behavior
    • Many of our permanent beliefs about our self-image are developed in our childhood.
    • Our concept of self-image can change through our lives.
    • 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.

  • Sociocultural Influences
    1. Culture is an influence that is completely learned and handed down way of life.
    2. Cross-Culture Business Considerations
    3. Physical Environment
    4. Social Class
      1. Might impact the information search phase of consumer behavior
      2. Marketing and advertising campaigns must differ in their attempts to reach the various social classes.
    5. Reference Groups

  • THE COMMUNICATION AGENDA
    to be sure that the prospect understands the message, accepts it, and makes a commitment to take action.
    communication_process.gif (40255 bytes)
    Source
    Encoding the Message Encoding and decoding of messages are often achieved through the use of symbols
    The Message Itself
    Evaluating the Prospect's Decoding
    Barriers to Effective Communication
    • Words
    • Distractions
    • Timing
    • Interruptions
    • Technical Erudition
    • Poor Listening Habits
    • Make Use of Feedback - your message has been transmitted successfully when the prospect's understanding of the message is the same as yours.
    manage_communications.gif (108889 bytes)
    Use of the Voice
    • Clarity or Articulation
    • Volume
    • Uniqueness
    • Silence
    • Rhythm
    • Rate of Speech

  • SELLING WITHOUT WORDS (NONVERBAL COMMUNICATION)
    bodylang.gif (25909 bytes)Visual communication the expresses majority of a person's feelings and emotions
    Kinesics
    1. Body language includes facial expressions, shifts in posture and stance, as well as the movement of body limbs.
      1. Understand the Body Language of Gestures
      2. Body Signals
      3. Hand Movements
      4. Your mannerisms should be calm and unhurried.
    2. Facial expressions convey a larger percentage of the nonverbal message than body movement does.
    3. If you can read a prospect's body language and control your own body signals then you are more likely to be understood.
    4. Warning signals that the prospect is either not understanding or not accepting the message.
      1. Rubbing the nose.
      2. Leaning back in the chair with hands behind the head.
      3. Resting the head in the hands with elbows on the desk.
      4. Finger under collar or rubbing back of neck.
    5. The Non Verbal Dictionary
    6. Analyzing the walk
    7. Biomotion Lab
    Proxemics concerned with the physical distance individuals prefer to maintain between themselves and others.
    1. Successful sellers tend to move closer to achairlove.jpg (3452 bytes)client when closing a sale.
    2. It is best to carefully test for a prospect's comfort zone.
    3. Comfort zones tend to change with sex, status, or age.
    4. Four to twelve feet from the client could be a good distance in which to begin a sales interview.
    5. In a selling situation, the intimate zone should be entered only by invitation or during a handshake.
    Cultural Proxemics
    hndshak1.gif (4347 bytes)HAND SHAKE
    • Americans use a firm, solid grip;
    • Middle Easterners and Asians prefer a gentle grip a firm grip to them suggests unnecessary aggressiveness
    eyecontact.gif (3051 bytes)EYE
    CONTACT
    • Americans are taught to look directly
    • Japanese and Koreans are taught to avoid direct eye contact, direct eye contact to them is considered a weakness, and may indicate sexual overtones
    ok.jpg (12926 bytes)O.K.
    GESTURE
    • For Americans, forming a circle with thumb and forefinger to signal O.K.
    • Means "zero" or worthless in France
    • Means money in Japan
    • Means calling someone a very bad name in Germany.
    Wink.gif (8791 bytes)NODDING YES OR NO
    • For Americans, up and down means yes, side to side means no
    • in Bulgaria, the nods are reversed in meaning.
    feet_on_table.jpg (13276 bytes)PUTTING FEET ON TABLE
    • An American gesture is found to be offensive to nearly every other country around the globe

  • GENDERSPEAK: SEPARATED BY COMMON LANGUAGE
    Relating to the Opposite Sex
    1. Genderspeak_l.jpg (24579 bytes)Body language does not mean exactly the same between a man and a woman as it means between two men or two women
    2. Websites
      1. Genderspeak
      2. http://www.adrr.com/lingua/12lwma.htm
      3. Genderspeak: Men, Women, and the Gentle Art of Verbal Self-Defense
    3. A woman's smile
      1. May be interpreted as an attempt to substitute personal charm for competence
      2. If she doesn't smile, she may be considered cold and impersonal.
    4. Both men and women may unconsciously join in a game of talking business but using body language that says, "Let's flirt."
    Women Men
    Personal Space
    • Tend to surrender more quickly
    • May feel vaguely uncomfortable about having done so.
    • Tend to surrender less quickly
    Interruptions interrupt men less often they do other women. interrupt both sexes
    Networking Tend to use more Tend to use less
    Patience More Less
    Use of Humor Less More
    questioning and listening Tend to be better Tend to be worse