4.02
Understand sales processes and
techniques to enhance customer
relationships and to increase the
likelihood of making sales.
Define the terms motivation and
valence

Motivation
◦ The drive to do, accomplish or buy something (like a
getting an “A” or buying a car)
◦ Internal and external motivators

Valence
◦ the degree of importance or value attached to a
reward

Each individual ranks potential rewards according
to the valence (importance) to them and
estimates the likelihood (possibility) of a variety
of possible actions delivering those payoffs
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What is valence? Why must valence be
considered in addition to the rewards them
selves?
Valence is the degree of importance or
value attached to a reward.
 An individual may be interested in a
variety of rewards:

◦ BUT , they are unlikely to be equally
important to him/her.
◦ Obviously, those rewards of greatest
importance should receive more emphasis.
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Define the term perceived
probability
Perceived probability
 the perception a person has about the
likelihood or unlikelihood of an event given
knowledge of some but not all of the factors
that will determine the outcome
What is perceived probability?
 Perceived probability is the perception that
effort on a particular set of tasks will lead to
accomplishment of performance outcomes
that will, in turn, lead to desired rewards.
Explain reward-measurement (RM)
theory (i.e., motivation equals the
benefits of buying).
The motivation is the benefit the buyer gets
 Buyers are motivated by both intrinsic
rewards & extrinsic rewards;
 Probability multiplied by the valence
determines the individual level of motivation
◦ Intrinsic rewards: buyers give themselves (e.g.,
feeling of satisfaction)
◦ Extrinsic rewards: bestowed by one’s organization
(e.g., salary, promotion)
Describe types of internal and
external rewards that motivate buyers.

Internal
◦ What’s in it for me?
◦ What will I gain for myself if I buy this product
vs. the other one?
◦ Improve my image with friends or associates

External
◦ Will this make my boss, spouse, children
happy?
◦ Save time or money
Explain why the two dimensions of valence (the
importance or value) of the reward and
perceived probability need to be considered in
reward-measurement theory.

The Reward-Measure (RM) model says that
probability times valence determine the
individual level of motivation. That means a
person will be more highly motivated to
take actions and/or seek outcomes that
they perceive as attainable.
Describe how salespeople can apply the
reward-measurement theory to motivate
customers.
Help the customer see the benefits of
making the purchase
 Demonstrate the product in a way that
shows a high probability of success
 Reduce the customer’s fears of failure
 Help the customer do the math of
“valence X probability”

Discuss behavior choice theory (i.e.,
the motivation is the situation).
Buyers go through a choice process to arrive at
decisions of how they will buy, as opposed to the
choice process of what will be bought (modeled
as part of the buy-grid model).
1. Identify situation
◦ Self-orientation
◦ Company orientation
2. Evaluate personal relevance
3. Assesses action alternatives & requirements
4. Choose behavior strategy
◦ Offensive strategies
◦ Defensive strategies
Identify Situation
Self-orientation - the degree to which the
individual works to achieve personal benefits
 Company orientation - the degree to which
the individual works to achieve benefit for
the company
How can an organization motivate selforiented individuals to engage in companyoriented behavior?
 The key is to demonstrate a strong linkage
between behaviors that benefit the firm and
the achievement of personal benefits

Evaluate Personal Relevance
In this stage, the buyer examines the reward
structures (including formal reward system
and informal and social reward system),
associated with the purchase situation.
 For example, a buyer might evaluate if it is an
opportunity to show off decision-making
skills, how about the opportunity to get
promotions and/or management recognition.
 What’s in it for me?
Assess Action Alternatives &
Requirements
In this stage, the buyer look at:
 The amount of control over the task
◦ Urgency of purchase
◦ How well does it meet the requirements?
Are there any choices in what the buyer
can and can’t do?
 Company policies and procedures that
may limit the choice of buying activities

Choose Behavior Strategy
There are two types of strategies – Defensive or offensive
The difference between offensive & defensive strategies
Offensive strategies designed to maximize gain;
Defensive strategies designed to minimize loss
Which is most likely to be favored by the organization?
Purchasing agent? the individual?
Organizations typically favor “maximizing” profit;
Purchasing agents tend to favor more conservative, less risky, and more likely to
be achieved strategies that “minimize losses” to the firm & themselves;
Employees choose alternatives that will be “acceptable” for the firm & which
carry an “acceptable” level of risk for themselves. Most people are riskaverse and will try to minimize losses as a means of ensuring their continued
employment.This may lead to less risky (& less profitable) choices unless the
firm empowers greater risk-taking.
Dwyer, F. Robert & Tanner, John F. Jr. (2009) Business Marketing, 4rd ed.,
McGraw-Hill
Describe role theory (i.e., the
motivation is the norms or
expectations).
People behave within a set of norms or
expectations of others due to the role in
which they have been placed
◦ On your own
◦ Part of a group
◦ CEO of a corporation
Explain buying determinant theory (i.e.,
variety of factors motivate customers).
Factors that motivate
 Environmental
◦ Business, social, government

Market
◦ Competition and customers
Organizational
 Individual

Organizational
Extrinsic reward systems
 Role expectations
 Corporate culture and
intrinsic rewards
 Cross-functional purchasing teams

Individual
Valence of reward
 Probability perceptions

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Discuss how Maslow’s hierarchy of
needs can be used to understand
customer motivation when buying
5 Steps in the hierarchy
 Where is your customer in the hierarchy?
 What will this product do for them and
will it solidify a level or move them up?

Maslow’s hierarchy of needs
Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
Maslow’s Heirarchy of Needs