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u o t e d Pr i c e 5 10 50 9 10 90 7 10 70D u r a b i l i t y 6 9 54 8 9 72 9 9 81E a s e o f A p p l i c a t i o n 10 8 80 5 8 40 8 8 64S e r v i c e F a c t o r s 5 8 40 8 8 64 10 8 80R e l i a b i l i t y 8 7 56 10 7 70 5 7 35B o n d i n g T i m e 8 6 48 6 6 36 4 6 24N o n T o x i c 8 6 48 10 6 60 8 6 48S h e l f l i f e i n S t o r a g e 9 6 54 6 6 36 6 6 36O v e r a l l Ev a l u a ti o n S c o r e 430 468 438 P = Pr o d u c t Pe r f o r m a n c e S c o r e s I = R e l a t i v e I m p o r t a nc e o f C ha r a c t e r i s t i cCopyright 169。 2022 by Harcourt, Inc. 1 Phase Six Evaluation of Proposals and Selection of Supplier Phase Seven Selection of Order Routine Phase Eight Performance Evaluation and Feedback Copyright 169。 2022 by Harcourt, Inc. 1 (Figure ) Complex Mix of Business Buyer Needs Buyers Level of Satisfaction 63% Level of Influence On Buyers’ Satisfaction 37% Level of Influence On Buyers’ Satisfaction Psychological Attributes “ Delighters‖ Functional Attributes “ MustHaves‖ Copyright 169。 2022 by Harcourt, Inc. 1 Types of Purchasing Decisions Buying Situation ? Straight Rebuy Buying Situation – Routinized Response Behavior ? Modified Rebuy Buying Situation – Limited Problem Solving ? New Task Buying Situation – Extensive Problem Solving Copyright 169。 2022 by Harcourt, Inc. 1 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 LowCopyright 169。 2022 by Harcourt, Inc. 1 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 ghCopyright 169。 2022 by Harcourt, Inc. 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 Copyright 169。 2022 by Harcourt, Inc. 1 Buyers define trust using terms such as: ? Openness ? Dependability ? Candor ? Honesty ? Confidence ? Security ? Reliability ? Fairness ? Predictability Copyright 169。 2022 by Harcourt, Inc. 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. Copyright 169。 2022 by Harcourt, Inc. 1 Knowledge Bases Help Build Trust and Relationships (Figure ) Industry Service Product Competition Company Price/ Promotion Technology Market/ Customer Possible Knowledge Bases Copyright 169。 2022 by Harcourt, Inc. 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 Copyright 169。 2022 by Harcourt, Inc. 1 Sales Ethics Image of Salespeople NonCustomerOriented Behavior ? Pushy ? Hard Sell ? Fast Talking ? High Pressure Copyright 169。 2022 by Harcourt, Inc. 1 Module 4 Communication Skills Copyright 169。 2022 by Harcourt, Inc. 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 ____? Copyright 169。 2022 by Harcourt, Inc. 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 of customer. – “How do you feel about…?” – “Do you se the merits of…?” – “What do you think…?” Copyright 169。 2022 by Harcourt, Inc. 1 Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose ? Probing Questions ? Evaluative Questions ? Tactical Questions ? Reactive Questions – refer to or directly result from information previously provided by the other party. – “You mentioned that … Can you give me an example of what you mean?” – “That is interesting. Can you tell me how it happened?” Copyright 169。 Discover Attitudes/Opinions Change Topics or Direct Attention FollowUp Previously Elicited Statements Amount of and Specificity of Information Desired Openend Questions Designed to be Probing in Nature Closedend Questions Designed to be Probing in Nature Dichotomous or Multiplechoic