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Chapter Three—Understanding Buyers
Learning Outcomes
After completing this chapter, you should be able to:
1. categorize primary types of buyers.
2. discuss the distinguishing characteristics of business markets.
3. list the different steps in the business-to-business buying process.
4. discuss the different types of buyer needs.
5. describe how buyers evaluate suppliers and alternative sales offerings by using the
multiattribute model of evaluation.
6. explain the two-factor model that buyers use to evaluate the performance of sales offerings
and develop satisfaction.
7. explain the different types of purchasing decisions.
8. describe the four communication styles and how salespeople must adapt and flex their own
styles to maximize communication.
9. explain the concept of buying teams and specify the different member roles.
10. understand means for engaging customers.
Chapter Outline
I. Introduction
II. Types of Buyers
III. Distinguishing Characteristics of Business Markets
A. Concentrated Demand
B. Derived Demand
C. Higher Levels of Demand Fluctuation
D. Purchasing Professionals
E. Multiple Buying Influences
F. Collaborative Buyer-Seller Relationships
IV. The Buying Process
A. Phase One—Recognition of the Problem or Need: The Needs Gap
V. Types of Buyer Needs
A. Phase Two—Determination of the Characteristics of the Item and the Quantity Needed
B. Phase Three—Description of the Characteristics of the Item and the Quantity Needed
C. Phase Four—Search for and Qualification of Potential Sources
D. Phase Five—Acquisition and Analysis of Proposals
VI. Procedures for Evaluating Suppliers and Products
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A. Assessment of Product or Supplier Performance
B. Accounting for Relative Importance of Each Characteristic
C. Employing Buyer Evaluation Procedures to Enhance Selling Strategies
D. Phase Six—Evaluation of Proposals and Selection of Suppliers
E. Phase Seven—Selection of an Order Routine
F. Phase Eight—Performance Feedback and Evaluation
VII. Understanding Postpurchase Evaluation and the Formation of Satisfaction
A. The Growing Importance of Salespeople in Buyers’ Postpurchase Evaluations
VIII. Types of Purchasing Decisions
A. Straight Rebuys
B. New Tasks
C. Modified Rebuys
IX. Understanding Communication Styles
A. Mastering Communication Style Flexing
X. Buying Teams
XI. Engaging Customers
A. Focusing On the Customer Experience
B. The Role of Information Technology
C. Buyers’ Demand for Access to Relevant Information
D. The Need for Adding Value
Exercises
Developing Professional Selling Knowledge
1. How might the following characteristics of business-to-business markets affect the
relational selling activities of salespeople: Larger, but fewer, buyers? Derived demand?
Higher levels of demand fluctuation?
If the market consists of larger, but fewer, buyers, then each customer (or potential
customer) relationship might be extremely important. This means salespeople will need to
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2. How do the three different types of purchasing decisions (straight rebuy, modified rebuy,
new task) influence the time and effort a buyer might allocate to the different steps of the
purchase decision process?
Generally speaking, as the type of purchasing decision moves from a straight rebuy to a
modified rebuy to a new task, the amount of time and effort spent in the purchase decision
process increases. In straight rebuy situations, it is not uncommon for the purchase decision
3. List and compare the probable functional, situational, psychological, social, and knowledge
needs of (a) a large financial investment office and (b) a college student, both of whom are
looking to purchase a new computer printer.
Answers to this question will vary. Students should, however, demonstrate an
4. How might a salesperson work with and assist a business buyer in each step of the buying
process: Recognition of the problem or need? Determination of the characteristics of the
item and the quantity needed? Description of the characteristics of the item and the
quantity needed. Search for and qualification of potential sources? Acquisition and analysis
of proposals? Evaluation of proposals and selection of suppliers? Selection of an order
routine? Performance feedback and evaluation?
The role of many salespeople is to help potential buyers recognize their needs. A
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salesperson can accomplish this task by asking questions that help in identifying these
needs (covered later in the text). They should closely listen to the buyer’s answers and
control the flow of the conversation.
Salespeople help in the acquisition and analysis of a proposal. To do this, they need to
understand the evaluation criteria so they can present their proposal in the best light
possible. Better yet, salespeople who work closely with the buyer through the earlier stages
5. Explain the role of functional attributes and psychological attributes in the postpurchase
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determination of customer satisfaction.
Functional attributes refer to the features that allow a product to do what it is supposed to
do and to the extent to which it does as expected. Products that do not perform as expected
6. How might salespeople use their knowledge of the multiattribute evaluation model to plan
and deliver their sales presentations to a buyer?
Salespeople may use their knowledge of the multiattribute evaluation model in several
ways to help plan and deliver their sales presentations to a buyer. For example, salespeople
7. What are the implications for a salesperson if, when making a sales call, he or she
discovers that there is no needs gap present? Illustrate your answer with an example.
Answers to the question will vary. However, the student should demonstrate an
8. Why have knowledge and the capability to creatively apply that knowledge in creating
unique solutions become so important for today’s salesperson in the business-to-business
marketplace?
As markets become more competitive and technology (e.g., e-commerce) improves,
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salespeople will have to “add value” to their relationship with the customers to be
9. Explain the concept of communication styles and how a salesperson might flex his or her
own style to better match the style of the buyer. How would the salesperson’s behaviors
and activities differ as he or she advances through the different stages of the selling
process? Illustrate your answer with examples.
The concept of communication styles suggests that individuals possess different
psychological predispositions to communication. The text covers four categories that
individuals can be sorted into based on two dimensions—assertiveness and responsiveness.
Students’ examples will vary.
10. What are the implications of buying teams for a salesperson selling complex production
equipment to a manufacturer firm? Develop an example to explain further and illustrate
your answer.
Answers to this question will vary. However, students’ answers should demonstrate their
Group Activity
In many ways recruiting is a lot like buying a product. Accordingly, the recruiting process is very
similar to the buying process. The purpose of this section of the guide is to help students
understand the recruiting process from the recruiters’ perspective. To complete this section,
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students need to do two things. First, they need to identify the type of job they would like to
obtain after graduation. Second, they are to describe each of the phases of the buying process
(outlined in the chapter) in the context of recruiting for their desired position. For example, in
phase one, they would describe how the position became available. In phase two, they would
describe the qualifications and desirable characteristics the recruiter will look for in candidates.
Students should continue the exercise all of the way through phase eight, describing the impact
of their first year’s performance on the recruiters’ assessment of other graduates of their
institution.
The purpose of this exercise is to help students think through the buying decision process in a
way that is or will be meaningful to them. In addition, this exercise should better prepare
students for the job search process.
Experiential Exercises
Key Questions during the Buying Decision Process
Objective: Your students will be able to understand the importance of good, effective
questioning.
Time Required: 10 to 15 minutes.
Teaching Tip: Have students work individually or in small groups to answer the questions. For
each question, have students explain why the question is important.
1. Who, besides you, will be making the decision to buy?
The salesperson’s goal is to determine the various individuals who will be influential in the
2. What problems do you foresee in changing suppliers?
The answer to this question will help the salesperson understand the probability that the
3. What do we need to do to win the support of others?
The answer to this question will help the salesperson gain insight into the additional steps
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4. When would you plan to make the purchase decision?
5. What sense of urgency do you feel about this buying decision?
6. Other important questions?
Students’ answers may vary.
Chapter 3 Case
Selling for RelationshipsFirst, Inc.: Understanding Communication Style, Buying Teams,
and Buying Needs
Background
RelationshipsFirst, Inc. is a relatively new entrant in the cloud computing business management
software industry, having been in existence for a little over four years. It specializes in providing
Web-based customizable customer relationship management software solutions that support an
entire company, from accounting to Web capabilities. Its software is constructed around an
individual customer record so that accounting, sales, support, shipping, and billing all access
identical information for each interaction. The company currently serves a variety of businesses
across a number of industries. Customer satisfaction is the company’s top priority and it acts
with integrity to fulfill this mission. Its technology is easy to learn and easy to use, and its
information technology staff is extremely knowledgeable and customer friendly.
The company currently employs more than 75 salespeople who call directly on businesses and
organizations throughout the United States. Salespeople are trained to be customer-oriented
problem solvers who seek to establish long-term relationships with customers. This approach has
allowed RelationshipsFirst to experience steady sales gains since its beginning and it hopes to
continue its upward growth trajectory.
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Current Situation
Dawn, a recent college graduate who just completed the sales rep training program at
RelationshipsFirst, is excited about her upcoming meeting with Green Meadows Nursery and
Landscape, LLC of Kansas City, Missouri. Privately owned, Green Meadows serves the nursery
and landscaping needs of its customers through its two large metro retail locations. Each location
has a store manager, and several full -and part-time employees to assist with sales and
operations. The company’s owner serves as president and they also employ a director of
marketing and sales, who among other things oversees a staff of five outside salespeople, a
director of operations, a director of information technology (whose primary responsibility is to
run the Web side of their business), and a director of accounting and finance. The outside sales
force solicits both residential and commercial accounts and in large part is responsible for
growing the non-retail business for Green Meadows.
A good friend of Dawn’s, Taylor Shift, happens to be neighbors with Stewart Strong, Green
Meadows director of marketing and sales. In a recent conversation with Stewart, Taylor
mentioned Dawn and how she might be able to help him at Green Meadows. Stewart suggested
that Taylor have Dawn give him a call and subsequently Dawn was able to secure a meeting with
Stewart Strong the following Tuesday morning.
Dawn was delighted that Taylor provided her with this prospect and was confident that this
would help her get off to a fast start at RelationshipsFirst. Dawn has been friends with Taylor
since grade school. This is not unusual for Dawn, who has many friends and close relationships,
likely because she shows such a sincere interest in others, particularly in their hobbies, interests,
family, and mutual friends. She enjoys listening to the opinions of others and seems to get along
with most everyone, generally avoiding conflict rather than submitting to others. Dawn credits
her ability to communicate well orally (she loves to talk and socialize), get along well with
others, and build a consensus, in part, for her landing a position in sales at RelationshipsFirst.
Prior to her meeting with Stewart Strong, Dawn asked Taylor if she could meet her for lunch to
find out a little more about Stewart and Green Meadows. When Dawn finally arrived for lunch,
late as usual, she wasn’t able to learn as much about Green Meadows as she would have liked,
but she did learn the following about Stewart. Taylor indicated that Stewart was a good neighbor,
but he certainly wasn’t a friendly, outgoing relationship builder such as Dawn. In fact, he tended
to be rather cool, tough, and competitive when it came to relationships. He liked to be in charge
of people and situations and was not willing to let others stand in the way of achieving his goals.
Stewart manages his time well, is impatient with others, and tends to be very businesslike. He
likes extreme sports and appears to have a penchant for taking risks. According to Taylor, at
annual home owners’ association meetings, Stewart tends to be the most outspoken individual in
attendance. While opinionated, Stewart rarely takes advice from others and prefers to make his
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own decisions.
Although Dawn believed she still had additional work to do before meeting with Stewart, she
was at least glad to know a little bit about the person she would be meeting. The more she knew
about her buyer, she surmised, the better she could tailor her offering to meet his needs.
Questions
1. Based on your understanding of both Dawn and Stewart, how would you characterize the
communication style of each?
Dawn has an amiable communication style. She is low on assertiveness and high on
2. What, if any, preparations and style flexing should Dawn make to better relate to and
communicate with Stewart Strong?
Students’ answers will vary, but they should include Dawn’s recognition that Stewart has a
driver communication style. Accordingly, Dawn must work on becoming more
3. Who all might be involved in the buying decision for Green Meadows with regard to
Dawn’s offering? For each, explain why and how?
Students’ answers will vary, but they should mention the involvement of the president
(owner), the director of operations, the director of information technology, and the director
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4. Explain at least two needs that might be met by Green Meadows by purchasing the software
offered by RelationshipsFirst.
Students’ answer will vary but should be consistent with the RelationshipsFirst’s value
proposition.
Role Play
Situation: Read the case.
Characters: Dawn, sales rep for RelationshipsFirst, Inc.; Stewart Strong, director of
marketing and sales, Green Meadows Nursery and Landscape, LLC.
Scene:
Location— Stewart Strong’s office at Green Meadows.
Action—Dawn meets with Stewart to find out more about Green Meadows operations and
needs to see if she can help them. She is also trying to determine who else might be involved
in the buying decision and what influence each might have. She has no plans to make a sale
on this call.
Chapter 3 Role Play
Shoes Unlimited
Background
You are a sales representative for Shoes Unlimited, a manufacturer and marketer of an array of
styles of men’s and women’s casual shoes, located in southern Texas. You are responsible for
calling on a variety of accounts throughout the midwestern U.S., many of which are
independently owned shoe retailers, often in small cities and towns.
Current Situation
You recently scheduled a meeting with Joe Jackson, owner of Fantastic Footwear, an
independent retail shoe store located in a small rural community in southeast Missouri. Joe
contacted you after finding your company on the Internet. He is in the process of evaluating
several suppliers for his soon-to-be-opened shoe store. Before meeting with Joe, you have
decided to prepare a series of questions to ask Joe to identify his situational, functional, social,
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psychological, and knowledge needs. When meeting with Joe you want to ask him several
questions so that you can fully understand his needs and then demonstrate to him how you and
your company can best satisfy those needs.
Role Play
Location: Joe Jackson’s office at Fantastic Footwear
Characters: You, Shoes Unlimited sales representative; Joe Jackson, and owner of Fantastic
Footwear.
Action: Using the questions you developed, have a conversation with Joe to assess his five
general types of needs (ask at least one to two questions to assess each need).
Chapter 3 Continuing Case
Understanding Tom Penders
It was Monday afternoon and Brenda Smith was very excited. She just got off the phone with
Tom Penders, the administrator in charge of a large medical office in her territory. After an
introductory letter and several follow-up phone calls, Tom Penders finally agreed to meet with
Brenda next Friday to discuss the possibility of replacing his organization’s old copiers, as well
as adding new copiers to keep pace with his organization’s rapid growth. The primary purpose of
the meeting was for Tom to learn more about the National Copier Company and its products and
for Brenda to learn more about Tom’s company and its specific needs.
When Brenda arrived about 10 minutes early for her meeting with Tom Penders at the medical
offices on Friday, she was greeted by a receptionist who asked her to be seated. Ten minutes
passed and Brenda was promptly shown to Tom’s office. Brenda couldn’t help but notice how
organized Tom’s office was. It appeared to Brenda that Tom was a man of detail. First, Tom
explained that the medical offices housed over 25 doctors specializing in a variety of fields. They
occupied two floors and were planning to expand to the vacant third floor in the near future.
Currently, they were organized into four divisions with an office professional assigned to
approximately six doctors for each division. Each division ran its own “office” with a separate
copier and administrative facilities. Tom also had an assistant and a copier. Upon concluding his
overview, Tom provided Brenda with an opportunity to ask questions. After this, Tom
systematically went down a list of questions he had about NCC, its products, and Brenda herself.
Following this, Tom had his assistant take Brenda on a tour of the facility so she could overview
their processes. Before leaving, Tom agreed to meet with Brenda in two weeks.
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Based on her conversation with Tom, Brenda did not find Tom to be a particularly personable
individual. In fact, she found him to be somewhat cool and aloof, both deliberate in his
communication and actions. Yet, Tom was willing to learn how NCC could help his medical
office. While Brenda preferred communicating with someone more personable and open, such as
herself, she was determined to find a way to win Tom’s business.
Questions
1. What type of communication style do you believe that Tom exhibits? What are the
characteristics of this communication style?
Students should conclude that Tom exhibits an analytical communication style—low on
2. Based on your understanding of Tom’s communication style, outline a plan for selling to
Tom Penders.
Students’ answers will vary, but they should include some reference about the need to let
3. Identify other members of Tom Penders’ organization that may play a role in the buying
decision and explain the role they might play. How should Brenda handle these
individuals?
Tom’s assistant, along with the other office personnel from the four divisions, may play
some role in the process. Tom’s assistant is likely to be the primary gatekeeper.
4. Explain the types of buyer needs that will be most important in this selling situation.
Students’ answers will vary, but they should focus on functional, psychological, and
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