Effectiveness of personal selling in consumers decision making process Case study of selling personal loans

Zahra Khan Student Number: !!"!#$%"!&

'he dissertation has been submitted to Skyline College Shar(ah )n partial fulfillment of the *egree of +achelor of +usiness ,dministration -a(oring in -arketing

Effectiveness of personal selling in consumers decision making process Case study of selling personal loans

Zahra Khan

Acknowledgement
I would like to thank certain people who helped me during the course of this assignment and with the help of whom I was able to reach to valuable conclusions. The following is a list of the people who helped me complete this assignment to the best of my abilities. Firstly, I would like to thank my research supervisor, Dr. Sudhakar ota, who guided me throughout the process and helped me at every step by clearing my doubts. Secondly, the staff of the library of Skyline !ollege who helped me to find books related to my topic of dissertation and provided any additional assistance whenever re"uired. Thirdly, I would like to thank the authors of the various books and web sites that helped me gain secondary data for my dissertation. Finally, I would like to thank the respondents who provided me with valuable information by answering my "uestionnaires.

#etter of !ertificate
'his is to certify that the dissertation .ork of the student $s. %ahra han, &&$, '(ffectiveness of personal selling in consumer)s decision making process * !ase study of selling personal loans+/ is the original .ork undertaken by her and the incremental progress on the same has been supervised by me to.ards the partial fulfillment of the a.ard of bachelor of business administration ma(or in marketing degree of Skyline College0 ) further certify to the best of my kno.ledge that this pro(ect has not been copied and not submitted else.here for the a.ard of any other degree at any other institution0

*r0 Sudhakar Kota ,ssociate 1rofessor *issertation2Supervisor

Abstract
Scope of work
'his research is based on the effect of personal selling on promoting personal loans0 'he aim is to help in providing the future gro.th trends of personal selling in the banking sector in *ubai .hich .ill in turn unveil the (ob opportunities for the same0 Effectiveness can mean achieving sales target/ satisfying customers/ merely making them a.are by passing information or helping in maintaining customer relationships0 'he effectiveness in this assignment is measured .ith respect to customer satisfaction and maintaining relationships0 -oreover/ gaps bet.een services provided by salespeople and services e3pected by customers are revealed0

,esearch methodology'o find ans.ers to the research 4uestions of this assignment/ e3ploratory study .as used by collecting data by 4ualitative techni4ues0 +oth primary and secondary data .as collected and conclusions .ere reached by deduction0

!onclusions)t .as concluded after analy5ing the data collected that personal selling is possibly the most important techni4ue to market personal loans0 -oreover/ it helps in building profitable relationships .ith customers .hich help them make their purchase decisions0 'here is no particular aspect of the salespeople that customers are dissatisfied .ith but improvement in salespeople fulfilling their promises is still needed0

!ontents

Serial .o 0 2 4

Topic !hapter 01Introduction

/age .o. /g 0

!hapter 21 #iterature ,eview /g 3 !hapter 41 ,esearch $ethodology !hapter 61 Data Analysis !hapter 31 !onclusion 7 ,ecommendations &ibliography Appendi: /g 5

6 3

/g 00 /g 22

8 9

/g 26 /g 23

#ist of tables- ,efer to appendi: * /g 23 #ist of figures Figure .o

6ig0 & 6ig0 6ig0 70& 6ig0 %0& 6ig0 "0& 6ig0 #0& 6ig0 :0& 6ig0 ;0& 6ig <0& 6ig &!0& 6ig &&0& 6ig & 0& 6ig &70& 6ig &%0& 6ig &%0 6ig &%07 6ig &%0% 6ig &%0" 6ig0 &"0& 6ig0 &"0 6ig0 &"07 6ig0 &"0% 6ig0 &"0" 6ig &#0& 6ig &#0 6ig &#07 6ig &#0% 6ig &#0" 6ig0 &:0& 6ig0 &;0& 6ig0 &<0& 6ig0 !0&

Title
No of participants in different age groups No of participants in different genders classification of 8& according to gender and age groups Classification of 8 according to genders and age groups Classification of 87 according to genders 9 age groups Classification of 8% according to genders Classification of 8" 'he importance of good product 'he importance of good timing 'he importance of convincing salespeople according to genders and age groups 'he importance of brand name 'he importance of price -inimum E3pectations from salespersons according to genders 9 age groups )mportance of relationship building to increase satisfaction Customer satisfaction .ith need identification Customer satisfaction .ith communication Customer satisfaction .ith fulfilling promises Customer satisfaction .ith empathy Customer satisfaction .ith maintaining relationships according to genders ,mount of improvement needed in need identification ,mount of improvement needed in communication ,mount of improvement needed in fulfilling promises ,mount of improvement needed in empathy ,mount of improvement needed in maintaining relationships according to genders 9 age groups )mportance of listening skills in developing relationships )mportance of empathy in developing relationships )mportance of follo. up in developing relationships according to demographics )mportance of trust.orthiness in developing relationships )mportance of negotiation in developing relationships 'he most important stage of the selling process according to demographics 'he most important variable in pre2 purchase stage 'he most important variable in purchase stage 'he most important variable in post purchase stage

/age .o.
&& && && & & &7 &7 &% &% &% &" &" &# &# &# &: &: &: &; &; &; &< &< &< ! ! ! & & &

!hapter 01Introduction
Topic: Effectiveness of personal selling in consumers decision making process Case study of selling personal loans /roblem statement1ersonal selling refers to the personal communication of information to persuade a prospective customer to buy something2 a good/ service/ idea or something else2 .hich satisfies that individuals needs0 =ith the use of skills and techni4ues/ personal sellers can build personal relationships .ith customers that result in both parties obtaining value0 )n most cases the >value? for the salesperson is reali5ed through the financial re.ards of the sale .hile the customers >value? is reali5ed from the benefits obtained by purchasing and consuming the 4uality product0 1ersonal selling may also be used for the purpose of simply delivering information or maintaining relationships .ith customers0 'he interactive nature of personal selling makes it the most effective method for building relationships .ith customers0 +ecause selling involves personal contact/ this promotional method often occurs through face2to2face meetings or via a telephone conversation/ though ne.er technologies allo. contact to take place over the )nternet0 1ersonal selling plays a ma(or role in convincing customers to make a purchase decision0 @ne key advantage personal selling has over other promotional methods is that it is a t.o2.ay form of communication0 'he seller is regarded as an e3pert due to the sound kno.ledge he possesses0 Ae can reduce the psychological risk that the buyer faces and help in decision making by reducing risk by clearing customers doubts and ans.ering 4ueries0 Ais intention is to make people .ho have not previously purchased the product to purchase it/ and those .ho have already purchased it to repurchase and become loyal customers0 Ae can help reduce dissonance by minimi5ing risk/ maintaining a relationship and increase post purchase satisfaction0 'his is especially the case in personal loans0 /ersonal loans are given by the bank on credit/ based on your .ord to repay0 1ersonal selling plays a ma(or role in encouraging customers to apply for personal loans because for such large amounts of money/ customers usually face more psychological risks than other products0Ao.ever gaps still e3ist in the process0 1ossibly the biggest disadvantage of selling is the degree to .hich this promotional method is misunderstood0 -ost people have had some bad e3periences .ith salespeople .ho they perceived .ere overly aggressive or even do.nright annoying0 'his is a perceptional difference0 'here might be a promise gap .here the salesperson may not be able to deliver the value he promised to deliver or a communication gap .here the salesperson may not be able to communicate the benefits to the potential customer0 Ae may have selected the .rong target/ may not have predicted ob(ections or may not have the ability to follo. up till the end0 'hese gaps pose problems to salespeople and hence the need to study them0

;b<ectives 'o identify the gaps bet.een customer e3pectations and the service provided 'o find out the link bet.een customer relationship management and customer satisfaction0 'o identify the attributesBtechni4ues of a salesperson that influence customers decision 'o recommend improvements in personal selling0

,esearch =uestion'o find out .hether personal selling is effective in influencing customers to make a purchase decision and ho. important is the process of Customer relationship managementC

>ypothesis
1ersonal selling does not convince customers to apply for personal loans and does not help in maintaining customer relationships0 Salespeople cannot al.ays satisfy customers0 'he process of customer relationship management does not influence customers decisions

#iterature ,eview'his research is based on the effect of personal selling/ .hich is a part of direct marketing/ on promoting personal loans0 'he direct marketing Service Sector in D0,0E generates around &7billion a year .ith annual gro.th of at least #E/ according to Charles 1rescott/ a Fice 1resident at *irect -arketing ,ssociation/ reported Gulf Ne.s0 >'he focus of marketing is to do such an e3cellent (ob of developing/ pricing/ promoting/ and distributing a product to customers that the product practically sells itself0 @rgani5ations have begun to reali5e that it is a lot cheaper to retain current customers than to attract ne. ones0 'his has led to a focus on relationship marketing that involves .orking closely .ith customers to build lasting relationships over time0 1ersonal selling is the essence of developing relationships0? 1ersonal selling &<<< by Gemmy ,llen Chp &! study guide >'he role of professional salespeople has e3panded and changed dramatically in recent years0 )nstead of merely selling products/ todays salespeople are e3pected to serve customers as consultants .ho offer e3pert advice on improving customers lifestyles or making their business operations more profitable0? HEssentials of personal selling2 the ne. professionalismI $olph ,nderson

,esearch Design$esearch design is the plan and structure of investigation .hich is conceived to obtain ans.ers to research 4uestions0 &0 E3ploratory Studies researchers e3plore concepts to define them more clearly 0 *escriptive Studies: 'he ob(ective of the descriptive study is to determine the .ho/ .hat/ .here/ .hen and ho. of a topic0 70 Causal studies: it seeks to discover the effect that one variableHsI has on another Hor otherI or .hy certain outcomes are obtained0 'he type of research design that ) intend to use for my research is e3ploratory0

,esearch $ethodology'here are % types of methods for the research methodology0 'hey are: &0 8ualitative 'echni4ues: they are a set of research techni4ues in .hich data is obtained from a relatively small group of respondents 9 not analy5ed .ith statistical techni4ues0 0 8uantitative techni4ues: it is the systematic scientific investigation of properties and phenomena and their relationships0 70 *eduction: it is a type of reasoning that proceeds from general principles or premises to derive particular information0 %0 )nduction: it is the process of reasoning in .hich the premises of an argument are believed to support the conclusion but do not ensure it0 ) .ill be using 8ualitative and *eduction for my research0

Sampling'he basic idea of sampling is that by selecting some of the elements in a population/ .e may dra. conclusions about the entire population0 ) chose a sample of 7! people

Data !ollection Tools&0 1rimary *ata Collection: in primary data collection methods/ the data is collected first hand by using 4uestionnaires 9 intervie.s0 0 Secondary *ata: it is data that has already been collected by someone else for a different purpose than yours0

&usiness Implications) assume that my research .ill help the banking sector of the Dnited ,rab Emirates by sho.ing the benefits of personal selling and understanding ho. it can be improved0 Since not many studies have been done on this topic/ it .ill further encourage people to

research on this topic and find out the obstacles in its .ay0 )t .ill provide the professionals .ith useful statistics that .ill help them understand the future of the field of personal selling0

#imitations&0 'ime2 Since ) am doing this research as a college assignment/ ) .ill not have enough time to obtain as much information as the topic re4uires 0 -oney2 Jengthy and useful researches involve a lot of traveling to intervie. people and to find useful data .hich is costly 70 Jegal 9 ethical constraints2 ) had to specify the use of this data and had to ensure people that it .ill not be kept longer than re4uired0

!hapter organi?ation
'his research is divided into " chapters0 Chapter @ne deals .ith the introduction of the topic/ the reasons for studying it/ and the ob(ectives of the research .ith brief literature revie. and the choice of the methodology selected for the research0 Chapter '.o is the literature revie. in detail .hich includes theoretical 9 e3ploratory studies0 Chapter 'hree discusses the research methodology in detail i0e0 the methods used and the reasons for selecting them0 Chapter 6our .ill be the analysis of data and presentation findings0 Chapter 6ive .ill be the Conclusion and $ecommendations0

!hapter 21#iterature review

K1ersonal selling involves the t.o .ay flo. of communication bet.een a buyer and seller/ often in a face to face encounter/ designed to influence a person or groups purchase decision0 Marketing 4th edition by Berkowitz, Kerin, Hartley & Rudelius

KFirtually ever occupation that involves customer contact has an element of personal selling Marketing 4th edition by Berkowitz, Kerin, Hartley & Rudelius K,ssuring customer satisfaction: professional salespeople make a commitment to provide full service and assistance to the buyer before/ during and after the sale0? Essentials of personal selling- the new professionalis by Rolph !nderson KCustomer satisfaction occurs .hen the value and customer service provided through a retailing e3perience meet or e3ceed consumer e3pectations0 )f the e3pectation of value and customer service is not met/ the consumer .ill be dissatisfied0 @nly very satisfied customers are likely to remain loyal in the long run0 Retail anage ent-a strategi" approa"h by Barry Ber an & #oel R E$ans K'he key for customer satisfaction is to match customer e3pectations .ith company performance0 , company can al.ays increase customer satisfaction by lo.ering its price or increasing its services0 %rin"iples of arketing- %hilip Kotler & &ary !r strong KFalue added refers to the e3tra benefits/ from the prospects perspective/ that one sellers product offerings have over those of competitors0 ,dditional value can come from special product features/ the brands reputation for 4uality/ product guarantees or the sellers uni4ue customer service0 Essentials of personal selling- the new professionalis by Rolph !nderson KCustomer service is a some.hat elusive concept that is defined uni4uely by each different customer group0 Ao.ever/ " basic dimensions of service have been identified: reliability/ tangibles/ responsiveness/ assurance/ empathy0 Essentials of personal selling- the new professionalis by Rolph !nderson K,s a critical link bet.een a firm and its customers/ salespeople can create customer value in many .ays0 6or instance/ by being close to the customer/ salespeople can identify creative solutions to customer problems0 Customer value creation is made possible by relationship selling/ the practice of building ties .ith customers based on a salespersons attention and commitment to customer needs over time0 $elationship

selling involves mutual respect and trust among buyers and sellers0 )t focuses on creating long term customers/ not a one time sale0 Marketing 4th edition by Berkowitz, Kerin, Hartley & Rudelius >'he focus of marketing is to do such an e3cellent (ob of developing/ pricing/ promoting/ and distributing a product to customers that the product practically sells itself0 )n the past/ the focus of marketing .as on finding ne. customers to make the sale0 @rgani5ations have begun to reali5e that it is a lot cheaper to retain current customers than to attract ne. ones0 'his has led to a focus on relationship marketing that involves .orking closely .ith customers to build lasting relationships over time0 1ersonal selling is the essence of developing relationships because it is directed to.ard achieving mutually satisfying results bet.een buyer and seller/ .hich sustain and enhance future interactions0? %ersonal selling '((( by &e y !llen )hp '* study guide

>'he role of professional salespeople has e3panded and changed dramatically in recent years0 )nstead of merely selling products/ todays salespeople are e3pected to serve customers as consultants .ho offer e3pert advice on improving customers lifestyles or making their business operations more profitable0? Essentials of personal selling- the new professionalis by Rolph !nderson K'he presentation is at the core of the order getting selling process and its ob(ective is to convert a prospect into a customer by creating a desire for the product or service0 Marketing 4th edition by Berkowitz, Kerin, Hartley & Rudelius 'om $eilly in +stri"tly for sales, says/ >imagine the techni4ues that naturally fall into place .hen you embrace these selling attitudes: the sale is more about the customer than the seller/ professional selling is really about making a difference not (ust a deal/ trust is the currency of all great relationships/ salespeople may land the first sale but it is the total e3perience .ith a company that brings customers back selling is more about listening than talking

>Successful salespeople .ant to be successful to the point that they are .illing to accept the costs and invest the time and effort that it takes to be successful0?

)hara"teristi"s of su""essful salespeople by -a$e Kahle Studies sho. that prospective clients hate fighting2 they dont .ant you arguing and .orking to overcome their concernsL they .ant you to listen to their problems/ understand the impact of those issues/ and then offer to help0 .elling isn,t what you ight think it is by /enaan &ardener )n retail register/ G.en -oran identified " star 4ualities in the most successful salespeople0 &I 6ocusing on the customer I 6ollo.ing thorough the best salespeople get back to customers right a.ay 7I Aaving the right kno.ledge they should kno. .hat theyre talking about %I Dnderstanding Customers 1roblems2 the best salespeople kno. ho. to fulfill customer needs / solve their problems and help them achieve their goals 9 "I Going above 9 beyond going out of the .ay to lend a helping hand0

!hapter 41,esearch methodology

,esearch Design$esearch design is the structure of investigation .hich is based on the research 4uestion and it guides the selection of sources and types of information0 &0 E3ploratory Studies: 'hrough e3ploration researchers develop concepts more clearly/ establish priorities/ develop operational definitions and improve the final research design0 0 *escriptive Studies: they may be simple or comple30 'he ob(ective of the descriptive study is to determine the .ho/ .hat/ .here/ .hen and ho. of a topic0

70 Causal studies: it seeks to discover the effect that one variableHsI has on another Hor otherI or .hy certain outcomes are obtained0 'he essential element of causation is that , produces + or that , forces + to occur0 E3ploratory research .ill be used for this assignment0 'hrough e3ploration the concept of personal selling .ill be understood more clearly and ho. it can influence a consumers decision0 =ith the help of research/ ) .ill also be able to identify the tools that salespeople can use to persuade a consumer to make a decision0

,esearch $ethodology @,esearch ApproachA'here are % types of methods for the research methodology0 'hey are: &0 8ualitative 'echni4ues: they are a set of research techni4ues in .hich data is obtained from a relatively small group of respondents 9 not analy5ed .ith statistical techni4ues0 )t is the essential character or nature of something0 )t refers to the meaning/ the definition or model characteri5ing something0 0 8uantitative techni4ues: it is the systematic scientific investigation of properties and phenomena and their relationships0 'he process of measurement is central to 4uantitative research because it provides the fundamental connection bet.een empirical observation and mathematical e3pression of 4uantitative relationships0 70 *eduction: it is a type of reasoning that proceeds from general principles or premises to derive particular information0 )t is a form of inference that purports to be conclusive2 the conclusion must necessarily follo. from the reasons given0 'hese reasons are said to imply the conclusion 9 represent a proof0 %0 )nduction: it is the process of reasoning in .hich the premises of an argument are believed to support the conclusion but do not ensure it0 'here is no such strength of relationship bet.een reasons 9 conclusions0 'o induce is to dra. a conclusion from one or more particular facts or pieces of evidence0 ) .ill be using 8uantitative and *eduction for my research0 )t .ill be 4uantitative because ) .ill collect data from the samples and try to find ans.ers to my research 4uestions and .ould like to analy5e the data and present it graphically0 ,fter the analysis/ ) .ill reach to a conclusion by the process of deduction0

Sampling+y analy5ing certain people .e can dra. conclusions about the .hole population0 ) .ill collect data from a sample of 7! people .hich .ill include both males 9 females/ people from different age groups and different nationalities0 Sample .ill be collected in a simple random method .hich means that no se4uence or order .ill be follo.ed0

Data !ollection Tools-

&0 1rimary *ata Collection: in primary data collection methods/ the data is collected first hand by using 4uestionnaires 9 intervie.s0 ) .ill use this method to intervie. people about their vie.s on personal selling and ho. it influences them to make a purchase or .hy they think it is better than other forms of marketing0 0 Secondary *ata: it is data that has already been collected by someone else for a different purpose than yours0eg data from government statistics/ annual company reports/ marketing organi5ations etc0 ) have used this method to find out about the different aspects of direct selling by reading through already published researches and books0 'his .ill help me to develop 4uestionnaires more clearly and seek specific ans.ers to my 4uestions0

,esearch Instrument @!ommunication methodA$esearch instrument are the specific tools that are used to carry out the research0 'his can be done using 4uestionnaires or conducting an intervie. personally or on the phone0 )ntervie. ,n intervie. is a t.o .ay conversation initiated by intervie.er to obtain information from a participant0 8uestionnaires: 'he respondent participates .ithout intervie.er assistance/ usually in a pre determined environment e0g0 shopping malls0 ) .ill be collecting the data through 4uestionnaires since they are easy to fill/ can provide specific ans.ers to 4uestions if constructed .ell and less time 9 money consuming0 -oreover/ it is easier to persuade people to fill 4uestionnaires than give an intervie. personally or on phone0 =ithin the 4uestionnaires/ ) .ill be using 7 types of 4uestions: &0 4uestions relating to the respondents demographics 0 4uestions relating to the ob(ectives of the research 70 4uestions that ask for respondents suggestions

$easurement Scales
Scaling is the procedure for the assignment of numbers to a property of ob(ects in order to impart some of the characteristics to the properties in 4uestion0 -easurement scales are of three types: $ating scale: $anking scale Categori5ation

$ating scales that ) .ill use .ill include: -ultiple choice scale: multiple options are given0 -ultiple choice single response scale allo.s participant to select only one ans.er 9 multiple choice double response allo.s participant to choose more than one ans.er0 Numerical scales: e4ual intervals that separate their numerical scale points0 E0g0 a scale of &2" for cleanliness of a restaurant -ultiple rating list scale: accepts a circled response from the rater and allo.s a mental map of the respondents evaluation to be evident0

$anking scales that ) .ill use .ill include: 1aired comparison scale: the respondent can e3press attitudes unambiguously by choosing bet.een t.o ob(ects0 6orced ranking scale: it lists attributes that are ranked relative to each other0 )t is faster than paired comparison and usually easier and more motivating for respondents to fill0

) .ill use close ended 4uestions in .hich usually rating and ranking scales are used0

!hapter 61Data Analysis

Demographical data
6igure &2No of participants in different age groups

'he participants are fairly distributed into the % age groups to avoid any chances of bias0 6igure 2No of participants in different genders

@ut of a total sample si5e of 7!/ &# participants .ere male and &% participants .ere females0

;b<ective based =uestions

N@'E: )t must be noted that most participants chose more than one options as being most important/ hence they have been counted for all the options they voted for0 6igure 70&2Classification of 8& according to gender 9 age groups
12 10 8 6 4 2
si n g

10 10 7 5 5 22 3
o n

Male 6 7 5 4 1 1
h u re s

!e"ale 16#21 2 2 0 3 22#25 2 1 22 11 2 0 00 0 00 0

th e rs

26#35 36$

e n ti

il

0
d ve

00 0
M a

li n te rv

ro c

e rs

o n a

D ir

In te rn e

rt i

e ct

6rom the graph above/ it is clear that most people/ especially those bet.een #27"/ from all age groups voted for personal intervention and this .as closely follo.ed by advertising0 ,nother finding is that only people in all/ from the age group 2 " have voted for direct mail0 None of the participants mentioned any other techni4ues as being important0 Aence most people in general thought that personal intervention is most important0 'his .as closely follo.ed by advertising/ .hich .as ho.ever/ voted for mostly by females0 6igure %0&2Classification of 8 according to genders 9 age groups
12 10 8 6 4 2 0 5 4 3 3 2 1 Personali%ing the &roduct 'elling &ersonall( 3 5 11 10 Male 6 !e"ale 16#21 22#25 26#35 36$

)t can be said that among both genders there e3ists a misunderstanding of the meaning of personal selling but most people understand the term correctly0 -ost people .ho understand the term correctly fall in the #27" category0 6igure "0&2Classification of 87 according to genders 9 age groups
) 8 7 6 5 4 3 2 1 0 1 2 2 1 0 3 33 3 2 5 4 33 3 2 1 0 1 1 0 00 4 00 000 0 5 4 4 8 7 Male !e"ale 16#21 22#25 26#35 36$

@n a scale of & to " most people rated personal selling on Number & in terms of importance0

6igure #0& 2Classification of 8% H1ersonal selling as compared to other techni4uesI according to genders 9 age groups
12 10 8 6 4 2 0 1 2 6 5 4 44 4 4 3 2 1 4 3 1 0 0 000000 3 4 1 1 0000 5 10 Male !e"ale 16#21 22#25 26#35 36$

)t can be concluded that most females and males consider it to be important/ ho.ever/ e3ceptions are more likely to e3ist in men0 )t is a favored techni4ue among the age group of 2 "/ since they all rated it & or 0 #27" and &#2 & categories also favor it but do not sho. any e3tremes0 )n 'he 7#M category ho.ever/ most people voted for it as being most important .hile & of the t.o .ho did not/ thought it to be least important0 )t can be observed from the ans.ers to this 4uestion that personal selling is the single most important techni4ue/ follo.ed closely by advertising/ because most people ranked them both on & or on a scale of "0 'he other 7 techni4ues are not considered to be very important by public0 6igure :0& 2 8"a 'he importance of good product
16 14 12 10 8 6 4 2 0 1 2 3 4 5

-ost people rated it on Number & .hich means that it is definitely one of the most important attribute a product must possess to be sold0

6igure ;0& 2 8"b 'he importance of good timing

16 14 12 10 8 6 4 2 0 1 2 3 4 5

Good timings are also 4uite important according to most people but not more important than the product being good0 6igure <0& a28"c 'he importance of convincing salespeople according to demographics
) 8 7 6 5 4 3 2 1 0 1 2 3 4 5 Male !e"ale 16#21 22#25 26#35 36$

1eople in both genders and all age groups have rated this as important criteria for making a decision0 6igure &!0& a28"d 'he importance of brand name
12 10 8 6 4 2 0 1 2 3 4 5

*ifferent people give different amount of importance to brand name and no particular trend can be uncovered0 Ao.ever/ on average most people do not consider it to be e3tremely important0 6igure &&0& a2'he importance of price
12 10 8 6 4 2 0 1 2 3 4 5

1rice is considered to be important by most Npeople since they mostly rated it on &/ 6igure & 0& a2-inimum E3pectations from salespersons according to genders 9 age groups
16 14 12 10 8 6 4 2 0 3 15 13 10 8 7 7 4 2 22 55 5 22 4 2 11 22 4 2 Male

or 70

!e"ale 16#21 22#25 3 3 11 26#35 36$

Product *no+ledge

Personalit(

Manners

!riendliness

,"&ath(

6rom this graph/ it can be easily said that good product kno.ledge is considered to be the most important e3pectation that people have from a salesperson0 No particular difference in the responses of the genders can be observed0 6rom all the age groups/ most peoples minimum e3pectation .as good product kno.ledge/ follo.ed by personality and manners on almost the same level0

6igure &70& 2)mportance of relationship building to increase satisfaction

12 11 10 ) 8 7 6 5 5 4 3 2 0 3 2 0 1 2 4 3 2 2 1 0 3 1 0 00000 0 4 0 0 0 00 0 5 2 Male !e"ale 16#21 22#25 26#35 36$

-ost people/ especially men and those falling bet.een the ages 2 " thought relationship building .as very important to increase customer satisfaction0 Nobody rated it belo. 7 .hich mean that it is definitely considered to be of importance among the public/ irrespective of age and gender0 6igure &%0& 2Customer satisfaction .ith need identification
) 8 7 6 5 4 3 2 1 0 1 2 3 4 5

1eople have a mi3ed reaction about their satisfaction .ith the need identification abilities of salespeople0 6igure &%0 2 Customer satisfaction .ith communication
14 12 10 8 6 4 2 0 1 2 3 4 5

-ost people are satisfied .ith the communicating abilities of salespeople0

6igure &%07 2 customer satisfaction .ith fulfilling promises

10 ) 8 7 6 5 4 3 2 1 0 1 2 3 4 5

-ost people are also satisfied .ith the salespeople .hen it comes to fulfilling their promises but there are still a fe. of them .ho think other.ise0 6igure &%0% 2Customer satisfaction .ith empathy
14 12 10 8 6 4 2 0 1 2 3 4 5

-ost people rated empathy on 7/ .hich means that most people are not completely satisfied .ith the salespeoples ability of understanding customers0 6igure &%0" 2Customer satisfaction .ith maintaining relationships according to genders 9 age groups
4-5 4 3-5 3 2-5 2 1-5 1 0-5 0 1 1 22 2 2 44

3 16#21 2 2 1 1 1 22#25 26#35 36$

0 2 3

00 4

00 0 5

6rom the bet.een

graphs given above/ it is clear that most people/ especially .omen and those and 7" are satisfied .ith the relationship building abilities of salespeople0

6igure &"0& 2,mount of improvement needed in need identification

12 10 8 6 4 2 0 1 2 3 4 5

No particular trend is uncovered in this graph0 Some people think it needs improvement .hile others dont think so0 6igure &"0 2,mount of improvement needed in communication
10 ) 8 7 6 5 4 3 2 1 0 1 2 3 4 5

)n this attribute of salespeople ho.ever/ most people think improvement is needed0 6igure &"07 2 ,mount of improvement needed in fulfilling promises
20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 5

)n this particular attribute/ most people from all age groups and both genders think that improvement is needed0 'his means that customers do not think salespeople al.ays fulfill their promises0

6igure &"0% 2,mount of improvement needed in empathy

12 10 8 6 4 2 0 1 2 3 4 5

'his graph sho.s mi3ed reaction by the public0 'his means that there is not a lot of improvement needed0 6igure &"0" 2,mount of improvement needed in maintaining relationships according to demographics
6 5 Male 4 3 2 1 0 1 2 3 4 5 !e"ale 16#21 22#25 26#35 36$

-ost people/ both men and .omen in all age groups think that improvement is needed in the salespersons ability to develop relationships .ith customers0 6igure &#0& 2 )mportance of listening skills in developing relationships
14 12 10 8 6 4 2 0 1 2 3 4 5

-ost people think that good listening skills are important in salespeople to develop a relationship .ith the customer0 -ore than "!E of the people rated it as being most important or at least more important than other skills0

6igure &#0 2 )mportance of empathy in developing relationships

14 12 10 8 6 4 2 0 1 2 3 4 5

-ost people think that empathy is needed to develop a good relationship .ith the customer0 6igure &#07 2)mportance of follo. up in developing relationships according to demographics
) 8 7 6 5 4 3 2 1 0 1 2 3 4 5 Male !e"ale 16#21 22#25 26#35 36$

)t is obvious that follo. up or post purchase behavior is important to develop relationships .ith customers0 )t can also be noted that compared to men/ .omen consider it to be more important0 6igure &#0% 2 )mportance of trust.orthiness in developing relationships
16 14 12 10 8 6 4 2 0 1 2 3 4 5

,ccording to both the demographical variables i0e0 age groups and gender/ trust.orthiness is a 4uality a salesperson must possess to make good relationships .ith customers0

6igure &#0" 2)mportance of negotiation in developing relationships

12 10 8 6 4 2 0 1 2 3 4 5

6or this variable also/ there .as mi3ed reaction by the public and no particular trends or e3tremes .ere observed0 6igure &:0&2'he most important stage of the selling process according to demographics
8 7 6 5 4 3 2 1 0 Pre &urchase During &urchase Post &urchase Male !e"ale 16#21 22#25 26#35 36$

E4ual number of people think that pre purchase and the actually purchase stage are very important and very fe. think post purchase is most important0 6emales have voted almost e4ually for all the 7 stages .hile men have voted mostly for the pre purchase or during purchase stage as the most important to influence their decision0 6igure &;0& 2'he most important variable in pre2 purchase stage
25 20 15 10 5 0 Product *no+ledge Ph(sical &resentation Salespersons'attributes .oncern /or ti"e

,s the graph above sho.s/ product kno.ledge is the single most important factor according to the customers that a salesman should possess to make an impression in the pre2selling stage0

6igure &<0& 2 'he most important variable in purchase stage

16 14 12 10 8 6 4 2 0
o " " u

h a n d l in g

a tio

st r

a tio

e n ta ti o n 2d e " o n

n ic

0 1e c

Sale s pers ons 'attribute s

'he most important abilities of the salesperson in the purchase stage are communication/ handling ob(ections and the demonstration0 Negotiation is less important to most customers0 6igure !0& 2 the most important variable in the post purchase stage
25

20

15

10

0 !ollo+ #u& !ul/ illing &ro"ises Sale s pe r s ons 'attribute s 4i"el( deliver(

'he most important aspect in the post purchase stage is the fulfillment of the promises that salespeople make/ .hich may also be a timely delivery0

Suggestions of the participants

-ost participants suggested that salespeople should sho. concern for the customers time and not .aste it0 -oreover/ they felt that they should let the product sell itself by convincing customers of the product benefits0 'hey should also keep their promises and not lie to customers or make promises they cannot fulfill since this .ould not only lose their sale but create a negative image of the company in the mind of the customer0

P re s

3 e g o ti a

tio n

tio

!hapter 31!onclusion and recommendations

'he aim of this assignment .as to develop the concept of personal selling clearly and understand the gaps in the services e3pected by the customers and those provided by the salespeople0 -oreover/ the aim .as to find out the importance of relationship building .ith customers and .hat techni4ues are most important to develop relationships0 ,fter analy5ing the data that .as collected/ it can be concluded that among all the different methods of communicating .ith the customer/ personal selling is considered to be most important by both men and .omen alike and people of all ages0 H$efer to fig 70&I -oreover/ the ability of the salesperson to convince a customer is also very important0 Hrefer to figure <0&I0)n particular/ .omen and those people aged bet.een &# and & find this to be very important to make a decision0 ,mong other aspects of the product/ price and good timing are of relative importance0 H$efer figures :0&/ ;0&/ &!0& 9 &&0&I 'he minimum e3pectations that customers have from salespersons is to have good product kno.ledge and their ne3t re4uirements are for salespeople to have good personality and eti4uettes0 H$efer figure & 0&I0these factors mostly help them make their purchase decisions0 -ost people/ especially .omen/ think relationship building is very important to make a sale0 H$efer figure &70&I Customers are usually satisfied .ith the most aspects of salespeople especially communication/ .hich means that they are usually made .ell a.are of the product benefits by the salespeople0 H$efer figures &%0& &%0"I Ao.ever/ in spite of being satisfied/ customers still think improvement is needed in salespeople to keep their promises and maintaining good relationships0Hrefer figure &"0&2 &"0"I 'o develop relationships/ negotiation is not so important0 'he important factors are the salespersons listening skills/ trust.orthiness/ empathy i0e0 the ability to understand the customer and follo. up0 H$efer figure &#0&2 &#0"I @f the 7 stages of the selling process Hpre/ during 9 post purchaseI/ all 7 are important but a little more emphasis is given to the first 0 H$efer figure &:0&I )n the purchase stage/ all aspects of the salespeople/ i0e0 communication/ ob(ection handling/ presentation 9 negotiation are important but in the pre purchase stage product kno.ledge and in the post purchase stage fulfilling promises are given most importance0 -oreover/ respondents suggested that salespeople should be .ell a.are of the product features themselves and communicate them .ell in order to convince customers/ rather than making promises that they cannot fulfill0 'herefore/ in short/ it can be said that personal selling does convince customers to make a purchase decision especially in cases like personal loans and helps them to maintain relationships .hich are perceived to be very important by customers in making their decision0 $elationship building is important and in particular customers .ant salespeople to al.ays fulfill their promises to increase customer satisfaction0

'he recommendations that can be made to salespeople are that they before interacting .ith the customer/ they should understand the features and attributes of their product in order to convince the customer0 Dnder no circumstances should they make promises that they .ill not be able to fulfill/ since this may help in one time sale but .ill never help in making a relationship .ith the customer0 -oreover/ they should focus on their personality/ manners and listening and presentation skills to convince customers0

&ibliography:
&;; S:
0. 1ersonal selling &<<< by Gemmy ,llen Chp &! study guide 2. Essentials of personal selling2 the ne. professionalism by $olph ,nderson 4. -arketing %th edition by +erko.it5/ Kerin/ Aartley 9 $udelius 6. $etail management2a strategic approach by +arry +erman 9 Ooel $ Evans 3. 1rinciples of marketing2 1hilip Kotler 9 Gary ,rmstrong 8. Strictly for sales2 'om $eilly 9. Characteristics of successful salespeople +y *ave Kahle 5. Selling isnt .hat you might think it is by Jenaan Gardener B. $etail register by G.en -oran 0C. +usiness $esearch -ethods +y *onald $0 Cooper 9 1amela N0 Schindler

D;E,.A#S0. +auer/ Connie 9 -iglautsch/ Oohn H&<< I #ournal of -ire"t Marketing Folume #/ No P)n2home shopping: are there consumer segmentsCP

SIT(S0. http:BBen0.ikipedia0orgB.ikiB*irectQmarketing 2. http:BB...0ameinfo0comB;:& %0html 4. http:BB...0ameinfo0comB;<;;#0html 6. http:BB...0ameinfo0comBne.sBCompanyQNe.sB)B))$Q-iddleQEastB*irectQ-ark etingB 3. http:BB...0kno.this0comBtutorialsBprinciples2of2marketingBpersonal2 sellingB&0htm

Appendi:
'able &2No of participants in different age groups
Age 5rou& 16#21 22#25 26#35 36$ 3o/ &artici&ants 5 8 10 7

'able 2No of participants in different genders

5ender Male !e"ale 3o- o/ &artici&ants 16 14

'able 70&2Classification of 8& according to gender 9 age groups

Advertising Male !e"ale 16#21 22#25 26#35 36$ 5 7 2 2 5 3 Personal intervention 10 10 2 6 7 5 Brochures 1 4 1 2 0 2 Direct Mail 3 0 0 2 0 1 Internet 2 2 1 1 0 2 thers 0 0 0 0 0 0

'able %0&2 Classification of 8 according to genders 9 age groups

De"ogra&hic varia0les Male !e"ale 16#21 22#25 26#35 36$ Personali%ing the &roduct 5 4 2 3 3 1 'elling &ersonall( 11 10 3 5 7 6

'able "0& Classification of 87 according to genders 9 age groups

Male !e"ale 16#21 22#25 26#35 36$ 1 8 2 1 3 3 3 2 5 7 2 4 3 3 3 3 4 2 0 4 1 4 0 1 0 1 0 0 5 0 0 0 0 0 0

'able #0& 2Classification of 8% according to demographics

Male !e"ale 16#21 22#25 26#35 36$

1 10 4 1 4 4 5

2 4 6 3 4 2 1

3 0 4 1 0 3 0

4 0 0 0 0 0 0

5 1 0 0 0 0 1

'able :0& 2Classification of 8" 'he importance of good product

5ood &roduct 3o- o/ &&l 1 15 2 11 3 5 4 0 5 0

'able ;0& 2'he importance of good timing

5ood ti"ing 3o- o/ &&l 1 10 2 14 3 4 4 1 5 0

'able <0& 2'he importance of convincing salespeople according to demographics

Male !e"ale 16#21 22#25 26#35 36$ 1 8 7 3 4 3 5 2 6 6 2 3 5 2 3 0 0 0 0 0 0 4 1 0 0 0 1 0 5 0 1 0 1 0 0

'able &!0& 2'he importance of brand name

Brand na"e 3o- o/ &&l 1 4 2 8 3 4 4 11 5 3

'able &&0& 2'he importance of price

Price 3o- o/ &&l 1 10 2 6 3 ) 4 2 5 3

'able & 0& 2-inimum E3pectations from salespersons according to genders

De"ogra&hic varia0les Male !e"ale 16#21 22#25 Product *no+ledge 15 13 3 8 Personalit( 3 7 2 4 Manners 5 5 1 5 !riendliness 4 2 1 1 ,"&ath( 3 4 2 3

26#35 36$

10 7

2 2

2 2

2 2

1 1

'able &70& 2)mportance of relationship building to increase satisfaction according to demographical variables
De"ogra&hic varia0les Male !e"ale 16#21 22#25 26#35 36$ 1 11 ) 3 7 5 5 2 3 4 2 0 3 2 3 2 1 0 1 2 0 4 0 0 0 0 0 0 5 0 0 0 0 0 0

'able &%0& 2Customer satisfaction .ith need identification

'cale 3o o/ &eo&le 3eed Identi/ication 1 7 2 6 3 8 4 5 5 3

'able &%0 2Customer satisfaction .ith communication

.o""unication 'cale 3o o/ &eo&le 1 10 2 12 3 6 4 0 5 0

6igure &%07 2Customer satisfaction .ith fulfilling promises according to genders

'cale 3o o/ &eo&le 1 ) 2 3 3 4 4 4 5 1

'able &%0% 2 Customer satisfaction .ith empathy

,"&ath( 'cale 3o o/ &eo&le 1 2 2 8 3 13 4 5 5 1

'able &%0" 2Customer satisfaction .ith maintaining relationships according to demographics

Male !e"ale 16#21 22#25 26#35 36$ 1 2 5 1 2 2 2 2 7 3 0 4 4 2 3 5 5 3 2 3 2 4 1 1 1 0 0 1 5 1 0 0 0 1 0

'able &"0& 2 ,mount of improvement needed in need identification

3eed identi/ication

'cale 3o o/ &eo&le

1 5

2 7

3 4

4 10

5 3

'able &"0 2 ,mount of improvement needed in communication

.o""unication 'cale 3o o/ &eo&le 1 ) 2 8 3 ) 4 3 5 0

'able &"07 2,mount of improvement needed in fulfilling promises

!ul/illing &ro"ises 'cale 3o o/ &eo&le 1 1) 2 8 3 3 4 0 5 0

'able &"0% 2,mount of improvement needed in empathy

,"&ath( 'cale 3o o/ &eo&le 1 7 2 3 3 11 4 7 5 1

'able &"0" 2,mount of improvement needed in maintaining relationships

Male !e"ale 16#21 22#25 26#35 36$ 1 5 4 3 2 2 2 2 4 4 0 3 4 1 3 4 5 2 2 2 3 4 1 1 0 1 0 1 5 1 0 0 0 1 0

'able &#0&2 )mportance of listening skills in developing relationships

6istening s*ills 'cale 3o o/ &eo&le 1 13 2 13 3 2 4 1 5 0

'able &#0 2)mportance of empathy in developing relationships

,"&ath( 'cale 3o o/ &eo&le 1 11 2 13 3 4 4 1 5 0

'able &#072)mportance of follo. up in developing relationships according to demographics

Male 1 6 2 3 3 3 4 1 5 2

!e"ale 16#21 22#25 26#35 36$

8 2 3 5 4

5 1 3 3 1

1 1 2 1 0

0 1 0 0 0

0 0 0 0 2

'able &#0%2 )mportance of trust.orthiness in developing relationships

4rust+orthiness 'cale 3o o/ &eo&le 1 15 2 11 3 2 4 2 5 0

'able &#0" 2)mportance of trust.orthiness in developing relationships

3egotiation 'cale 3o o/ &eo&le 1 5 2 5 3 11 4 4 5 4

'able &:0& 2'he most important stage of the selling process according to demographics
Pre &urchase Male !e"ale 16#21 22#25 26#35 36$ 7 5 0 5 4 3 During &urchase 6 5 4 2 3 2 Post &urchase 3 4 1 1 3 2

'able &;0&2'he most important variable in pre2 purchase stage

Product *no+ledge 3o- o/ &&l 22 Ph(sical &resentation 11 .oncern /or ti"e 6

'able&<0& a2 'he most important variable in purchase stage

3o- o/ &&l .o""unication 14 01ection handling 14 Presentation 2de"onstration 14 3egotiation 3

'able !0&a 2 'he most important variable in the post purchase stage
!ollo+#u& 3o- o/ &&l 14 !ul/illing &ro"ises 21 4i"el( deliver( )