The Economic value that a purchase offers a customer is an important factor in many purchasing decisions.
The Psychological Influences on Consumer Buying
Black Box Approach Diagram –Stimulus (perangsang) – response model of buyer behavior A stimulus (sales presentation) triggers the buyers hidden mental process to respond to the stimuli, thus causing the buyer to make a purchase (response )
Needs are the basic factors that encourage a person to do something (action).
Wants are “ needs” that are learned during a person life, that is specific to a person’s needs.
E.g. A person wants to eat plain roti canai whereas other may like theirs with egg, sardine, banana, sausage etc.
When a need is not satisfied, it may lead to a drive.
A drive is a strong stimulus (something that excites) that encourages action to fulfill or reduce the need. Drives are created internally. They are reason behind certain human behavior. Marketing through product helps to satisfy a need.
Consumer Buying Behavior Fear Sadness Discomfort Anxiety Pain Stress Emotional loss Illness Harm Mocking Depression External pressure Freedom from… Acceptance Achievement Acquisition Affection Affiliation Appreciation Beauty Friendship Comfort Leisure Personal Space Uniqueness Esteem Fame Happiness Identification Knowledge Prestige Pleasure Recognition Respect Revenge Satisfaction Social Status Sympathy Variety Fun Desire for Aggression Curiosity responsible dominance Group protection Imitation Independence Love Nurturing order Personal fulfillment Playing Relaxing Power Pride Freedom Self Identity Tenderness Psychological Hunger Thirst Activity Sleep Passion Excretion Self Preservation Hot/cool Physiological Examples Types of Needs
Maslow's hierarchy of needs is often shown as a pyramid consisting of five levels: the four lower levels are grouped together as deficiency needs associated with physiological needs, while the top level is termed growth needs associated with psychological needs. While deficiency (kekurangan) needs must be met, growth needs are continually shaping behavior. The basic concept is that the higher needs in this hierarchy only come into focus once all the needs that are lower down in the pyramid are mainly or entirely satisfied. Growth forces create upward movement in the hierarchy, whereas regressive forces push proponent needs further down the hierarchy. However, one of the main drawbacks in the theory is that level 3 can be reached without completing level 2, as you can have numerous friends but no security.
N.B: When making a presentation always highlight or point out the features and benefits and how the product can benefit the customer. Technology Quantity Service Terms Flavour Delivery Packaging Quality Ingredients Taste Shape Color Price Size
Firstly when you meet a customer is to know the difference between important needs and the lesser important needs.
Secondly determine buyer’s important needs and focus on product benefits that will satisfy buyer’s needs.
Don’t stress unimportant needs in sales presentation.
Learn the sales concept and determine the buyers’ important needs
Common psychological needs Prevention of loss Self preservation Comfort or luxury Desire to succeed Pleasure Love for family Security Desire for gain Vanity Fear
Method to determine the most important needs of your prospect/customer
Show empathy and look from the customer’s point of view. Empathize (Stress) Ask others about the prospect’s needs. Talk to others Questions often bring out needs that the prospect would not reveal or don’t know. Ask questions A skillful salesperson may talk to others. listen to a prospect, probe with questions, make careful observation and stress product benefits. Combine Examine the prospect, study their background, understand their buying habits Observe Prospect may hint and say “ I wish I had a television like this one.” Listen
Corporate/ business buyers would give substantial forethought engaging in information search and evaluation before a purchase is undertaken.
A buyer process starts with a need recognition. Is there are necessity for the product to be purchased? Before the actual purchase is undertaken.
A “ mentally aroused or attuned” customer needs to decide how much more product information is required before he or she can make a decision to buy. If the desire or need is strong and there is that meet the customer’s expectation, then a purchase decision will be made.
Cognitive dissonance is the uncomfortable collision of two or more clashing beliefs. It usually results in (unconscious) efforts to reduce the discomfort by modifying one's assessment of the situation.
The classic example is a smoker resolving the dissonance between "I want to live" and "I smoke cigarettes" by downplaying the health risks of smoking or deciding that old age isn't worth living through anyway.
Malaysian Example: Young Malaysian youth engage in joyful, risky road racing swerving out through the traffic of the major cities in West Malaysia. The risk is they know they may:
Be killed in an accident arising between their motor cycle and other motor vehicle.
Knowing that racing or speeding may cause an accident, partial or full loss of once physical body or ultimately death.
Be arrested and summon by the traffic police.
Confiscation of their motor cycle
Conclusion: Yet this young, youthful teenagers take the risk in engaging in this dangerous risk driving, the thrill and excitement outweighs the loss of life.
Analysis: Cognitive dissonance gets particularly ugly when reality collides with the just world hypothesis, the belief that "the world is an orderly, predictable, and just place, where people get what they deserve.
Examples of Cognitive Dissonance Heavy smoker Cognitive Dissonance examples
Some customer may hesitate the same product again, instead choose to use a new product in place of the old one.
Customer may choose to switch brand sometime in the future.
Choosing your Presentation style to suit your customer
Make sure you understand and fine tune your presentation to suit to your prospect’s or customer’s needs.
The salesperson has to modify or suit his or her style to the needs of the customer.
Once the style is identified, its is possible to change and adapt your presentation to the buyer’s style.
To examine the detailed approach to selling method on personality preference types. Refer to the next page
Buyer’s Personality Style No jacket, loose tie or functional work clothes Current styles and informal Modern and crumpled Neat and conservative Dress Messy- piles of paper. Pictures of action in plant or products on the wall Warm decoration- people, scenic pictures. Antiques Abstract art, bookcases, trend charts, etc Used for computers and calculators. Has output point. Room Chaotic Personal & memorabilia Reference , theory books Neat Desk Environment Present Past Future Past, present, future Time orientation Impatient, short sighted, status seeking, self cantered, impulsive, don’t trust anybody, non-delegator Impulsive, manipulative, over personalizes, sentimental, postponing, guilt ridden, sirs up conflict, subjective Unrealistic, lubricious, dreamer, scattered, devious, out of date, dogmatic, impractical, poor listener Talkative, indecisive, Overcautious, overanalyses, unemotional, undynamic, controlled and controlling, Too serious, rigid & petty Person’s limitation Pragmatic, assertive, single-minded, technically skilled, objective – bases opinion on what he/she actually sees, perfection seeking, decisive, direct and down to earth, action orientated Spontaneous, persuasive, empathetic, grasps traditional values, probing, introspective, draws out feelings of others, loyal, active using previous style. Original, imaginative, creative, broad-gauged, Charismatic, idealist, intellectual, tenacious, ideological, conceptual, involved Effective communicator, Deliberative, prudent, weighs Alternatives, stabilizing, objective, rational, analytical, ask questions for more facts The person’s strength Active person. Deals with the world through their senses. Very deductive and energetic. People oriented. Very sensitive to people’s needs. An emotional person rooted in the past. Enjoys contact with people. Able to understand people well. Knowledgeable & future orientated person. An innovator who likes abstract principles from a mass of material. Active in community affairs by assisting in policy making, program development etc. A direct, detail orientated person. Likes to deal in sequence on his/her time. Very precise, sometimes seen as a petty minded Fact orientated . How to describe this person Senser Feeler Intuit or Thinker Guideline