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 • dependability buy. • • • • • • • • time savings money savings convenience comfort health or safety recreational value service quality My Mountain Bike dependability time savings money savings convenience quality comfort service recreational value 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 love affection 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 Extensive decision making Degrees of • little or no information known decision making • 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