The Social Psychology of Consumer Behaviour - Myths about Selling, Persuading Buyers - Assignment Example

Professional Selling Answer to Question 1. Myths about Selling These are generally the four myths about selling: 1) salespeople are being replaced by new technologies, 2) a salesperson should never take no for an answer, 3) a good salesperson can sell any product or service to anyone, and 4) salespeople are born, not made. Each of these myths has its underlying assumption, and thus the purpose of the first part of this paper is to provide counterarguments for such assumptions. The first myth explicitly says that salespeople are being replaced by new technologies on the assumption that selling goods or providing products nowadays can be done through different and most of the time efficient channels. The internet, for example, is an efficient channel for buying and selling products or service. In many industrialized countries, selling is done in computerized channels, providing the customer a wide array of options to facilitate transactions smoothly. This myth and its corresponding assumption though lack empirical validation. In social psychology, the assumption is that people always engage in transactions because of the want to reinvigorate social relations. In this case, the economic relations between the salesperson and the costumer are reinvigorated or more accurately expanded to a form of social relations. People when engaging in economic transactions would always want to get the maximum social benefit from the transaction (Bagozzi et al 71). It is noteworthy that many people want to buy basic products or goods (or procure services) from salespeople in order to smoothly extend that social benefit. Interaction is a form of social benefit. The salesperson is the channel for the customer to express maximum social satisfaction from the transaction. Thus, in many Third World countries, salespersons are the more preferred mode of selling products because of their ability to create an environment that would enable the customer to achieve maximum satisfaction. It is no wonder that salespersons are always respectful and friendly to customers, because such factors increase customer satisfaction before the product is bought. In this case, new technologies lack such an approach. The second myth and its corresponding assumption is that salesperson never take no for an answer since it would never maximize potential economic gain. Again, this also lacks empirical validation. In economic theory, the assumption is that in order to boost sales, specific factors like price, consumer tastes and preferences, and situational circumstances must be accounted (e.g. lowering the price). When applied to selling, the salesperson must never (or in any way) force a customer to buy products or procure service from a firm. Depending on the mood of the person, the chance is that the customer would more likely to decline on successive offers (of products or services) of the same salesperson. The implication is: the demand for a particular product or service from a firm would tend to decrease. The more the salesperson persuades a customer who does not want or uncertain to buy the product, the more likely the customer declines other products of the customer. It would be economically catastrophic rather than beneficial. On the social side, it is the rule that the salesperson respect the desire of the customer. Doing so would essentially preserve the relations (economic) between the salesperson and the customer. It is possible that the customer does not want to buy a particular product from the salesperson because the former perceives it to be useless in his present circumstances. In the future, the customer may want to buy a particular product from the same salesperson because he/she perceives the product to be useful. In such case, the previous respect of the salesperson (when the costumer declined to buy the product) serves as a maintaining device for continued transactions; a positive economic gain for the firm (where the salesperson is working). The third myth is that a good salesperson can sell any product or service to anyone on the assumption that the salesperson is a perfect salesperson (perfect in the sense that he/she can, by virtue of his persuasive market skills, can dispense a firm’s product to anyone, that is, can easily close a transaction, benefiting both parties). In the economic realm, the relationship between the customer and the salesperson is highly limited by the value of the product or service offered. If this is reality, then the so-called “good” salesperson is one who can sell a large volume of good or service to potential costumers. A salesperson who can sell any product or service to any costumer is a non-sense in the real economic world. Transaction is dictated first and foremost by the perceived utility of a good or service to the costumer. Even if a salesperson is really an “efficient” (replacement for good) salesperson (one that can sell products or services in large quantities in a given period of time), he /she would not be able to alter the perceived utility of the customer to the products or services he/she offers. This is in lieu of human psychology. Human beings are not easily persuaded to buy a product or service that does nothing to him. Remember that the circumstances of the customer are also taken into account. Based on the myth, a good salesperson can sell any product or service to any costumer. If for example, the salesperson offers a fishing boat to a farmer which costs around $ 5, 000 payable in 10 years, what are the chances that the farmer will buy the product? The chance is slim, for two general reasons: 1) the farmer does not need a fishing boat in his work, and 2) the farmer would initially perceive the boat as a form of luxury. In either case, buying a particular product would have to depend on the product perception and immediate need of the customer. Efficient rather than “good” is the right economic term. The last myth is that salesperson are born, not made, on the assumption that most “good” salespersons are really good transaction channels at a very early age (say 7 years old). This statement is a no-no in social psychology. There are generally seven types of intelligence. One of such is “interpersonal intelligence.” Types of intelligence are developed through the course of a person’s life; interaction with other people is a prerequisite before any form of intelligence can develop. “Interpersonal intelligence” is a type of intelligence that enables an individual to create a positive social environment for other people. As such, persons with this kind of intelligence are usually “ultra” friendly, very patient, and essentially good business partners. This type of intelligence, like other types of intelligence, depends of course on the social environment where the person is situated. If the social environment is friendly from birth to youth (interaction with other people is maintained and reinforced by the family, church, or the educational system), there is a high chance for the person to develop “interpersonal intelligence.” The implication: “efficient” salespersons are usually persons with interpersonal type of intelligence; their marketing skills are borne out of practice and the general atmosphere of the social environment. Answers to Question 2. Persuading Buyers There are definitely many techniques in persuading potential customers to purchase a product or service from a salesperson. These techniques are however not purely economic in nature. Most of the time, these techniques are largely derived from concepts in human psychology. Before discussing the different techniques in selling, there is a need to enumerate first the steps in selling. Here are the steps. A. Introduction of the Product to the Potential Buyer. This is the most fundamental step in marketing strategies. Product introduction gives the potential buyer the opportunity to evaluate the product based on its perceived utility. B. Positive Recommendation of the Salesperson to Buy the Product. After the costumer personally evaluated the product on its perceived utility, the salesperson will “reveal” the “true” value or utility of the product. Only the usefulness of the product will be discussed. In cases of selling cosmetics, the salesperson will enumerate the positive effects of the product to the costumer. Side effects will not be mentioned. The salesperson will then ask the potential buyer to purchase the product. Persuasion techniques are utilized. C. Price Negotiation. After the costumer agreed to buy the product, price negotiation usually occurs. The customer will persuade the salesperson to make price arrangements favorable to the former. Here are then the different techniques used by many salespersons in persuading potential buyers to purchase their products: 1) Foot in the door technique (Bagozzi et al, 37). This is a concept in social psychology which literally means “unable to resist.” Salesperson usually knocks on the door of the house of their potential customer. Once the potential buyer opens the door, the salesperson immediately steps in his/her right or left foot. This will prevent the customer from refusing to allow the salesperson from talking with him/her. 2) The second method is called “slack the problem-situation” (Bagozzi et al 102). The salesperson usually asks the potential buyer (after the recommendation stage) of some of his/her problems regarding other products he/she used (competitor products). The customer will be forced to cite the “bad” effects of the products he/she previously used. The salesperson will then ask the customer that those effects might just be of little “significance.” The customer will again be forced to say that “the product she previously used was of very little value and caused so many troubles.” This reinforces the fact that the customer will be tied to the product sold by the salesperson by “virtue of a change in perception.” Remember that in the introduction of the product, the potential buyer was the one who personally evaluates the product. If the perception of the potential buyer is against the goal of the salesperson, this serves as a mechanism for changing that perception. The customer will be bound to accept the product as genuine and useful. If the personal evaluation of the buyer conforms to the “will” of the salesperson, then this reinforces the notions of customer “positive perception of product.” 3) The last technique is called “shading in the glory of others” (Bagozzi et al 103). This is also a concept from social psychology. This connotes circumstances when a person, in order to boost his/her personality, attaches himself/herself to the achievements of other people by virtue of kinship, friendship, and marriage. When applied to marketing, this denotes salespersons attributing the product they sell as the manufactured good of a “successful and famous” company. The salesperson usually cites the founders of the company (who are long dead or dying), their achievements, and the future of the company. The salesperson usually asks the costumer if he/she would be willing to be part of that company. The customer has no choice but concede to the “suggestion” of the salesperson. The potential buyer then becomes an actual buyer. The process of persuading a potential buyer to purchase a product is both a matter of economics and human psychology. Answers to Question 3. Encouraging a Buyer to Order a Larger Quantity of Product to Avail a Quantity Discount Encouraging a buyer to order a larger quantity of product to avail a quantity discount is circumstantial. There are two cases when such approach is good and necessary. Here are the two cases: 1) If the salesperson perceives that the buyer really needs the product periodically, then it is better for the former to offer discount to the latter on the condition that the latter will order a lager quantity of the product sold. The salesperson can easily recognize the need of the buyer when the latter frequently asks question on the potential availability of the product in the market or to other salespeople selling the same product. This approach in marketing, then, benefits the two parties. 2) The second case depends on the scarcity and relative “fame” of the product in the market. If the buyer knows that the product is very rare or in shortage in the market (for example, iPhones), then he/she will be forced to ask the salesperson to reserve some units of the product for himself/herself. This is a great opportunity for the salesperson to offer discounts to the buyer if the latter would be willing to purchase a larger quantity of product. Discounts would serve as a signal for the buyer to purchase more products and for the salesperson to offer more products. Here is a case when such approach may not be a good idea. If the customer does not really need a large quantity of the product and is content of just one or two units of such product, then it would be unwise for the salesperson to persuade the buyer to order more units of the product even with a generous discount rate. If the salesperson persists, then the customer will be irritated and may just abhor from buying that product. Answer to Question 4. “Customer is Always Right” The statement “customer is always right” is a tricky statement. For many, the statement means that the customer is right in every circumstances of an economic transaction. This is not so in real economic terms. The statement means that the customer has every right as to the product he/she wants to purchase in the market (if he/she has the monetary capability to do so). This is called “freedom of choice.” This “freedom” is only functional when: 1) the customer has the capability to purchase the product he/she chose, and 2) the transaction is legal. Now many customers usually attach the first interpretation of the statement (customer is always right) when purchasing products in the market. This creates a little problem. Some salespersons were reportedly harassed by their customer by virtue of that statement. Some customers asked salespersons to give them large discounts (in violation of the general policies of the firms where the salespersons are employed). There are three things to remember when handling a person with this point of view: 1) Give him/her all the freedom to choose; never interfere when the customer is on the verge of buying the product; 2) If the customer asks for a discount, read to him/her the general policy (with regard to discounts) of the company; and 3) Lastly, be respectful in reminding the customer of the limits of his choice; what are the actions appropriate in such transactions. Reference Bagozzi, Richard et al. The Social Psychology of Consumer Behaviour (Applying Social Psychology). Philadelphia: Open University Press, 2002. Read More