Selling Hospitality
Chapter 4
The New World of Buying:
Changing Perceived Value has
Reshaped Buying Decisions
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Selling Hospitality
Buyers command the majority of the power,
and successful sellers learn to give them
what they want: value, as the buyers define it.
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Forces Changing Customers’
Perception of Value
Products/services are becoming commodities.
Technology advances impact on the sales
process.
Customer is barraged and short of time.
Quality of products and services quickly rises to
meet rising consumer expectations.
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Evolution of Excitement Attributes to
Threshold Attributes
High
Excitement
attribute
Customer
satisfaction
Low
Low
High
Performance relative to competition
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Evolution of Excitement Attributes to
Threshold Attributes
High
Excitement
attribute
Performance
attribute
Customer
satisfaction
Low
Low
High
Performance relative to competition
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All Rights Reserved
Evolution of Excitement Attributes to
Threshold Attributes
High
Customer
satisfaction
Excitement
attribute
Performance
attribute
Threshold
attribute
Low
Low
High
Performance relative to competition
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What Are the Consequences
of Value Shifts?
If customers perceive products to be
interchangeable with others (a commodity),
why doesn’t the lowest price always win?
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Value Defined
Value = Benefits minus Cost
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Value Defined
Value = Benefits minus Cost
Reduce cost
by making it
easier for the
buyer to acquire
the product.
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All Rights Reserved
Value Defined
Value = Benefits minus Cost
Increase benefits
through the sales
process.
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Reduce cost
by making it
easier for the
buyer to acquire
the product.
Value Defined
Value = Benefits minus Cost
Increase benefits
through the sales
process.
Lower costs
by removing the
cost of exchange.
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Reduce cost
by making it
easier for the
buyer to acquire
the product.
Three Types of Value Buyers
Intrinsic value buyers see the product as a commodity
and place value on the lowest price. They see little
value in interacting with a salesperson.
Extrinsic value buyers seek solutions to complex
problems. Quality product is a foundation for value.
They are willing to invest time and effort (costs) with the
salesperson in return for advice, customization, and
problem-solving capabilities.
Strategic value buyers want to create synergies that
only partnerships and alliances can provide.
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Remember
In sales negotiations, you are not negotiating
with XYZ Corporation, you are negotiating with
people.
Understanding of buyer motives is important.
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Types of Buyer Motives
Emotional
Rational
Hybrid or combination of both
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Need Satisfaction Buying Process
Traditionally salespeople have viewed the
exchange process from their own perspective—
the selling process.
The smarter way is to include the buyer’s
perspectives—the buying/selling process.
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The Buying Process
Recognition of needs
Evaluation of options
Resolution of concerns
Logistics of acquisition
Implementation
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