CASE: Culture Clashes Make Change Difficult at SAP Software giant SAP is based in Germany and is seeking to develop more efficient global operations. At the beginning of this decade, about two-thirds of its managers were German, and most key projects were led from its headquarters in Walldorf, Germany. The company’s leaders hoped SAP could become more agile and creative by bringing in a more diverse group of employees and sharing responsibility. Unlike the more typical route to globalization by setting up sales offices and manufacturing facilities, SAP introduced change from the top down. The company made English its official language, even for meetings at headquarters. It hired foreign managers, making them half of the company’s top management. It placed product development under the leadership of Shai Agassi, based in Palo Alto, California. Agassi was charged with overseeing development groups in eight centers around the world. One objective for the globalized SAP was to develop and implement software much faster. The process of creating a new program at SAP had been taking at least a year, as programmers in Walldorf carefully worked out each problem. The resulting programs were complex and difficult to install and didn’t work well with other companies’ products. At the same time, the Internet was making customers’ software more interconnected and increasing the pace of change. To keep up, SAP would have to change as well. SAP hired programmers in India and China, as well as in Germany and the United States. German programmers focused on the coding associated with the software’s main tasks, American employees more often addressed programming that affects the user’s experience, and Indian programmers worked on updating and fixing the code in older programs. Some human resource functions were outsourced to Prague, in Eastern Europe. The changes frightened many of the German employees, who worried they would lose their jobs and the company would lose its reputation for quality. Agassi assigned a group of 10 software developers to create 100 programs for analyzing data such as defects in parts. Their deadline: just 12 weeks. The developers first insisted the task was impossible, but when Agassi wouldn’t back down, they found a way to meet the deadline by writing a program that would write other programs. Still, they worried that working so fast would ultimately lead to problems with quality. Employees in Germany complained about the move away from “good, old German engineering” and the requirement that they speak English in meetings. They criticized the “Americanization of SAP.” Eventually, they rallied enough support to form a workers’ council, similar to a union, to help workers find other jobs at SAP when positions were moved to other countries. So far, though, the company has avoided layoffs at headquarters—in fact, it has hired programmers. Personnel director Klaus Heinrich guided American executives in working with engineers in each co.

1. CASE: Culture Clashes Make Change Difficult at SAP
Software giant SAP is based in Germany and is seeking to
develop more efficient global operations. At the beginning of
this decade, about two-thirds of its managers were German, and
most key projects were led from its headquarters in Walldorf,
Germany. The company’s leaders hoped SAP could become
more agile and creative by bringing in a more diverse group of
employees and sharing responsibility. Unlike the more typical
route to globalization by setting up sales offices and
manufacturing facilities, SAP introduced change from the top
down. The company made English its official language, even for
meetings at headquarters. It hired foreign managers, making
them half of the company’s top management. It placed product
development under the leadership of Shai Agassi, based in Palo
Alto, California. Agassi was charged with overseeing
development groups in eight centers around the world. One
objective for the globalized SAP was to develop and implement
software much faster. The process of creating a new program at
SAP had been taking at least a year, as programmers in
Walldorf carefully worked out each problem. The resulting
programs were complex and difficult to install and didn’t work
well with other companies’ products. At the same time, the
Internet was making customers’ software more interconnected
and increasing the pace of change. To keep up, SAP would have
to change as well. SAP hired programmers in India and China,
as well as in Germany and the United States. German
programmers focused on the coding associated with the
software’s main tasks, American employees more often
addressed programming that affects the user’s experience, and
Indian programmers worked on updating and fixing the code in
older programs. Some human resource functions were
outsourced to Prague, in Eastern Europe.

2. The changes frightened many of the German employees, who
worried they would lose their jobs and the company would lose
its reputation for quality. Agassi assigned a group of 10
software developers to create 100 programs for analyzing data
such as defects in parts. Their deadline: just 12 weeks. The
developers first insisted the task was impossible, but when
Agassi wouldn’t back down, they found a way to meet the
deadline by writing a program that would write other programs.
Still, they worried that working so fast would ultimately lead to
problems with quality. Employees in Germany complained
about the move away from “good, old German engineering” and
the requirement that they speak English in meetings. They
criticized the “Americanization of SAP.” Eventually, they
rallied enough support to form a workers’ council, similar to a
union, to help workers find other jobs at SAP when positions
were moved to other countries. So far, though, the company has
avoided layoffs at headquarters—in fact, it has hired
programmers. Personnel director Klaus Heinrich guided
American executives in working with engineers in each country.
For example, he urged them to manage German workers by
making a good impression with hard work and quality.
Managers learned to give German employees plenty of leeway
and give Indian employees plenty of attention. Still, Agassi, the
U.S.-based head of product development, resigned out of
frustration with the level of conflict.
SOURCE: Based on Phred Dvorak and Leila Abboud, “SAP’s
Plan to Globalize Hits Cultural Barriers,” Wall Street Journal,
May 11, 2007, http://online.wsj.com.
Consumer behavior is the set of actions that make up an
individual’s consideration, purchase, and use of products and
services. This includes the purchase as well as the consumption
of the products and services.

3. Consumer Behavior
‹#›
1
Contained 268 words
198 were one syllable words
50 were two syllable words
Only 20 words had more than two syllables
Small words really work!
Lincoln’s Gettysburg Address
‹#›
2
Words chosen
Possible distractions
Timing of meeting
Interruptions
Technical Erudition

4. Poor listening habits
Make use of feedback
Barriers to Effective Communication
‹#›
3
Clarity or Articulation
Volume
Uniqueness
Silence
Rhythm
Rate of Speech
The Use of the Voice
‹#›
4
'A southbound black truck was turning right while a northbound

5. sports car was attempting to turn left. When the two drivers
figured out they were trying to turn into the same lane, they
both honked but continued to turn without slowing down. In
fact, the red sports car seemed to speed up just before the
crash.' The man driving the truck had two children passengers,
one in the front seat and one in the back seat, the female driver
in the sports car had another woman passenger, wearing a
seatbelt. The woman driving the sports car had red hair and the
passenger had black hair.
Exercise
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This exercise shows how a story changes or gets distorted
depending on the teller. How the activity plays out confirms
research that indicates eyewitnesses to crimes view events
filtered through their own past experiences rather than with an
objective eye, according to the University of New Hampshire.
Exercise results
‹#›
The Ability to Manage Communication Dimensions

6. Words
Tone of Voice
Visual
% of Total Impact
Ability to Control
7%
55%
38%
High
Medium
Low
‹#›
7
Make a list of activities that require a series of steps to
execute, such as tying a shoe, wrapping a gift and planting a
flower.
Write each task on a separate index card
One person in the group draws an index card and instructs the
rest of the group on how to complete the task, without the use
of any gestures and without saying what the task is.
Exercise #2

7. ‹#›
(Nonverbal Communication)
Visual communication expresses the majority of a person’s
feelings and emotions
Body Language
Includes facial expressions, shifts in posture and stance, and
movement of body limbs
Selling Without Words
Understand the Body Language of Gestures
Hand Movements
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9
Rubbing the nose
Resting the head in the hands with elbows on the desk
Warning Signals
Watch for these signs that the prospect is either
not understanding or not accepting the message:
Finger under collar or rubbing back of neck

8. ‹#›
10
Successful salespeople move closer to a client when closing
It is best to carefully test for a prospect’s comfort zone
Comfort zones tend to change with sex, status, or age
Four to twelve feet could be a good distance in which to
begin a sales interview
The intimate zone should be entered only by invitation or
during a handshake
Proxemics
Proxemics: The physical distance individuals prefer to maintain
between themselves and others
‹#›
11

9. The Purchase Decision Process
External Search
(Extensive, Limited)
Evaluation of Alternatives
The Purchase Decision
Postpurchase Evaluation
Internal Search
(Habitual, Routine)
The Search for Alternatives
Problem Recognition
(Motive Arousal)
‹#›
12
(A 5-Step Process)
I. Problem Recognition (Motive Arousal)
May occur when the customer receives information from
advertising or from conversation with friends that causes
awareness of need
In relationship selling, sometimes hinges on the seller’s ability
to uncover a need

10. May occur when the consumer re-evaluates the current situation
and perceives an area of void or dissatisfaction
The Purchase Decision Process
‹#›
13
(A 5-Step Process)
The Purchase Decision Process
2. Search for Alternatives
Limited By:
Time and cost
Experience and urgency
Value of purchase
Risk involved in the purchase
3. Evaluation of Alternatives
Evoked Set is the list of alternatives
Salient attributes are used to evaluate products
Determinate attributes are motives used to make a decision
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14

11. (A 5-Step Process)
4. Purchase Decision
Several alternatives may seem equally acceptable
Can be made easier by a professional salesperson
Involves a set of related criteria
Tangible features of the product
Financial considerations: price, discounts, credit policies
Intangible factors: reputation, past performance, or delivery
dates
The Purchase Decision Process
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15
(A 5-Step Process)
5. Postpurchase Evaluation
Cognitive Dissonance is….
The level of anxiety depends on the importance of the decision
and the attractiveness of rejected alternatives
A seller can reduce this by:
Reinforcing the buyer’s belief that the right decision was made
Demonstrating the capabilities and quality of the product

12. The Purchase Decision Process
Postpurchase Anxiety
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16
Psychological Influences:
The role of perception
Mood of the moment
Attitudes
Attitudes are habitual patterns of response to previous
experiences
A negative attitude must be overcome before a sale can be made
Attitudes are the mind’s paintbrush. They can color or affect
any situation
Influences on the Purchase Decision Process
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17

13. How Many Squares Do You See?
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27
18
Self-image impacts the problem recognition phase of consumer
behavior
Many of our permanent beliefs about our self-image are
developed in our childhood
Advertisements that are consistent with our self-image are more
persuasive

14. Self-image and public-image are not always the same
Much behavior can be explained if the self-image is understood
The Self-Image
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19
Culture is an influence that is a completely learned and handed-
down way of life
Cross-culture business considerations
Physical Environment
Social Class
Impacts the information search phase of consumer behavior
Advertising campaigns must differ in their attempts to reach the
various social classes
Reference Groups
Sociocultural Influences
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20

15. Some fundamental differences
For Organizational Buyers…
Decision Maker - usually a buying center
Buying Criteria - more complex
Buying Motivation - rational, economic, and/or emotional
Characteristics of Organizational Buyers
Fewer in number
Purchases involve larger dollar volume
Less freedom of decision
Organizational Buying Versus Consumer Buying
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21
Organizational Buying Versus Consumer Buying
Ultimate Consumer Buying Motives
Organizational Buying Motives
Profit
Economy
Flexibility
Uniformity of output
Salability
Protection
Utility
Guarantees
Delivery
Quality
Increase wealth

16. Alleviate fear
Secure social approval
Satisfy bodily needs
Experience happiness or pleasure
Gaining an advantage
Imitating
Dominating others
Recreation
Improving health
‹#›
22
Multiple Buying Influence
Several people involved directly or indirectly in the decision
making process
The Buying Center
Users
Buyers
Influencers
Gatekeepers
Decision Makers
Multiple Buying Influence

17. ‹#›
23
For organizational buyers, more of the decisions are based on
rational buying motives rather than emotional motives
Research and analysis concerning the product and the company
conducted prior to purchase
Organizational Buying Motives
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24
The Channels Through Which
Communication Must Flow:
The Communication Agenda

18. ‹#›
25
Source
The sender of the message
Encoding the Message
Achieved through the use of symbols
The Message Itself
Evaluating the prospects decoding
Did they get it?

19. The Communication Model for Verbal and Nonverbal Messages
Verbal Skills
(Clarify Meaning)
Nonverbal Skills
(Read)
Source
Receiver
Encoding
(Implications)
Decoding
(Inferences)
Message
(Actions)
Verbal/Nonverbal
(Noise)

20. ‹#›
26
CHAPTER 4 REVIEW QUESTIONS:
Complete this questions before Sunday at Midnight
1. Formulate a brief definition of consumer behavior.
2. Why must salespeople understand consumer behavior?
3. What are the 5 stages of the buyingdecision process? What is
a salesperson's function in each of these stages?

21. 4. What is cognitive dissonance? How can a salesperson
prevent it?
5. What are the four purposes a salesperson may have in
encoding a message to be presented to a prospect?
6. How can you be sure someone has received, understood, and
accepted your message?
7. What is the role of perception in the buyingdecision process?
8. What are some of the psychological influences on the
purchasedecision process?
9. What are your typical body language actions? How do you
react, point your feet, where are your hands, what kind of eye
contact do you portray?
10. What did you learn from the Body Language video? Explain
in detail.