Customer Decision Making

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Customer Decision Making

A good salesperson does not just sell a product’s FEATURES. They sell . . .

BENEFITS

How do you know what

BENEFITS the customer wants or needs?

Lesson Objectives: You will be able to

• describe the difference between rational and emotive customer motives to buy.

• identify a few rational and emotive motives for making purchases.

• describe extensive, limited and routine decision making processes.

A rational buying motive is a conscious, factual reason to buy.

• dependability

• time savings

• money savings

• convenience

• comfort

• health or safety

• recreational value

• service

• quality

dependability

My Mountain Bike time savings money savings convenience quality service recreational value comfort health & safety

An emotive (emotional) motive is a feeling experienced by a customer through association with a product.

• social approval

• recognition

• power

• love

• affection

• prestige

social approval recognition power prestige affection love

Both rational and emotional motives may be present in the same purchase.

Michelin tires

Rational motives

• Safety

• Wide tread for traction

• 80,000 mile warranty

• Quality name brand

Emotional motives

• Loved ones

• look MACHO on my truck

• I can afford expensive tires!

• I buy only the BEST!

Guess which buying motive . . .

Products

• Ford Focus

• Ferrari

• Levis jeans

• Hilfiger jeans

• Keds

• Air Jordans

Customers

• Teenager buying a car

• YUPPY buying a car

• Parent buying a car

• Retiree buying a car

How much thought and consideration does a customer put into a buying decision?

• Amount of previous experience with the product or company

• How often the product is purchased

• Amount of information necessary to make a wise buying decision

• Importance of the purchase to the customer

• Perceived risk

• Time available to make the decision

Degrees of decision making

Extensive decision making

• little or no information known

• high perceived risk

Limited decision making

• has purchased before but not regularly

• moderate degree of perceived risk

• needs some information

Routine decision making

• purchased before

• high prior experience

• low risk

Remember!

Brand loyalty will move the decisionmaking process from

Extensive toward the

Routine.

On a clean sheet of paper . . .

• Write down four (4) products for each of the decision-making levels

– Extensive

– Limited

– Routine

• Using your product, write down four (4) detailed rational and four (4) emotional buying motives that a customer may experience with your product.

Due before the end of class today.

Homework

Complete end-of-chapter exercises A & B

Due tomorrow at beginning of class

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