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i o n o f N e w A l t e r n a t i v e sM u l t i p l e B u y i n g I n f l u e n c eF i n a n c i a l R i s k s1 Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit ) D EC I SI O N T Y PES t r a i g h t R e b u yN e w n e s s o f P r o b l e m o r N e e d LowI n f o r m a t i o n R e q u i r e m e n t s M i ni m a lI n f o r m a t i o n S e a r c h M i ni m a lC o n s i d e r a t i o n o f N e w A l t e r n a t i v e s N oneM u l t i p l e B u y i n g I n f l u e n c e V e r y S m a l lF i n a n c i a l R i s k s Low1 Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit ) D EC I SI O N T Y PES t r a i g h t R e b u y M o d i f i e d R e b u yN e w n e s s o f P r o b l e m o r N e e d Low M e di umI n f o r m a t i o n R e q u i r e m e n t s M i ni m a l M ode r a t eI n f o r m a t i o n S e a r c h M i ni m a l Li m i t e dC o n s i d e r a t i o n o f N e w A l t e r n a t i v e s N one Li m i t e dM u l t i p l e B u y i n g I n f l u e n c e V e r y S m a l l M ode r a t eF i n a n c i a l R i s k s Low M ode r a t e1 Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit ) D EC I SI O N T Y PES t r a i g h t R e b u y M o d i f i e d R e b u y N e w T a s kN e w n e s s o f P r o b l e m o r N e e d Low M e di um H i ghI n f o r m a t i o n R e q u i r e m e n t s M i ni m a l M ode r a t e M a x i m umI n f o r m a t i o n S e a r c h M i ni m a l Li m i t e d E x t e ns i v eC o n s i d e r a t i o n o f N e w A l t e r n a t i v e s N one Li m i t e d E x t e ns i v eM u l t i p l e B u y i n g I n f l u e n c e V e r y S m a l l M ode r a t e La r geF i n a n c i a l R i s k s Low M ode r a t e H i gh1 Organizational Buyer Behavior Buying Center ? Initiators ? Users ? Gatekeepers ? Influencers ? Deciders ? Purchasers 1 Current Developments in Purchasing ? Increasing Use of Information Technology ? Relationship Emphasis on Cooperation and Collaboration ? Supply Chain Management ? Increased Outsourcing ? Target Pricing ? Increased Importance of Knowledge and Creativity 1 Module 3 Building Trust 1 Buyers define trust using terms such as: ? Openness ? Dependability ? Candor ? Honesty ? Confidence ? Security ? Reliability ? Fairness ? Predictability 1 What is Trust? ? Trust answers the questions: – Do you know what you are talking about? – Will you remend what is best for me? – Are you truthful? – Can you and your pany back up your promises? – Will you safeguard confidential information that I share with you? 1 Why is Trust Important? The shift toward relationship selling emphasizes the initiation and nurturing of longterm buyerseller relationships based on mutual trust and valueadded benefits. 1 How to Earn Trust Trust Builders (Figure ) Trust Expertise Dependability Representation Competence Compatibility/ Likeability Candor Contribution Customer Orientation 1 Knowledge Bases Help Build Trust and Relationships (Figure ) Industry Service Product Competition Company Price/ Promotion Technology Market/ Customer Possible Knowledge Bases 1 Sales Ethics Image of Salespeople Television, movies, broadway productions, and the popular press have contributed to a negative image of salespeople portraying them as being associated with deceptive, illegal, and noncustomeroriented behavior. 1 Sales Ethics Image of Salespeople Deceptive Practices ? When salespeople give answers when they do not know, exaggerating product benefits, and withholding information may jeopardize future dealings with the buyer. ? Salespeople can create product liabilities by: – Expressed Warranty – Misrepresentation – Negligence 1 Sales Ethics Image of Salespeople Illegal Activities ? Defraud ? Con ? Misuse Company Assets 1 Sales Ethics Image of Salespeople NonCustomerOriented Behavior ? Pushy ? Hard Sell ? Fast Talking ? High Pressure 1 Sales Ethics Image of Salespeople (Exhibit ) Deceptive Practices Deceptive Deceive Hustle Scam Exaggerate Withhold Bluff NonCustomerOriented Behavior Pushy Hard Sell Fast Talking High Pressure Illegal Activities Defraud Con Misuse Company Assets 1 Module 4 Communication Skills 1 Sales Communication as a Collaborative Process ? Relational Sales Communication – A twoway and naturally collaborative interaction – Allows buyers and sellers to ? Develop a better understanding of the need situation ? Work together to best provide for the customer’s needs 1 Verbal Communication: Questioning Types of Questions Classified by Amount and Specificity of Information Desired ? Openend or Nondirective Questions – free response What happens when…? How do you feel…? Describe the… ? Closedend Questions – response limited to a few words. – Are you… – How many… – How often… ? Dichotomous/MultipleChoice Questions – directive forms of questioning – Which do you prefer, the ____ or the ____? 1 Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose ? Probing Questions – designed to perate below generalized or superficial information 1. Requesting Clarification ―Can you share an example of that with me?‖ 2. Encouraging Elaboration ―How are you dealing with that situation now?‖ 3. Verifying Information and Responses ―So, if I understand you correctly… Is that right?‖ 1 Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose ? Probing Questions ? Evaluative Questions – use open and closedend question formats to gain confirmation and to uncover attitudes, opinions, and preferences o