CHAPTER 2

LITERATURE REVIEW

This Research is analyzing about the personal selling improvement inEF

Swara Group.The personal selling that being used by EF Swara Group is mostly
face-to-face selling and telemarketing. The Consultative selling skill and sales
persuasiveness performance is applied by course consultant on personal selling
process thatwill enhance the satisfaction before purchase from thelead customer or
new customer of English FirstSwara Group in order to improve the purchase decision
to buy English First product and service.

2.1 Selling
Defined by Philip Kotler on his book “The Principle of Marketing”, selling is
one of the oldest professions in the world. The people who do the selling are goes by
many names such as salespeople, sales representative, account executive, sales
consultant, sales engineers, agents, district managers, and account development reps.
However, according to(Pederson, Wright, & Weitz, 1988), “Our definition of selling
that influence and persuasion are only a part of selling. Selling is also involves
helping customer identify the problems, supplying information on potential solutions,
and proving after-the-sales-service to ensure long term satisfaction.”

Thus, the selling itself it is not only just create a sales or make customer
making a purchase, but selling is also the process of understanding customer main
problem, help them to understand those problem, solve the problem with the product
or service which we offer, and also maintaining the relationship for long term
valuable relation.

2.1.1 The Nature of Selling

(Jobber & Lancaster, 2009) Selling is the simplest way to think of
nature function to make a sale. Selling is often very complex process to
make a sale, involving the use of a whole set of principle, technique and
substantial personal skill, and covering a wide range of different types of
selling task. Selling is a conceptual approaches to the simplict “how it is
done” approach which has mean to understand the way to finish the
selling activity by making a deal as a success of selling process. Some
15
16

companies spend large sums of money to train their salesperson in order

to master the art of selling, that’s why selling become the most important
link within the company and customer.
Selling is the activity that performs by a company or organization
with using a work force which is called a sales people, salesforce, or
salesperson to do both selling function and organizational
fuction(Marshall & Johnston, Relationship Selling and Sales
Management, 2005).
The Sales Bible said that, “Selling is not a matter of leads and
appointments then closes. It is not event a matter of the quality of your
product and services you response. But selling is a matter who you are,
what your attitude is, and how dedicated you are to personal excellence”.
The phylosoply of sales is how responsible the salesperson for the action
that they are take in selling and how good they could helping both
themselves and customers, so that ultimately the salesperson can win
theirselves challenge which is making a sales(Gitomer, 2008). Selling or
sales activity have 10 commandments to make it successful and achieve
the goals, as follow:
1. Think means positioning the sale in your head as a
mindset. The mindset which approaching in the sale will
make the salesperson become more friendly, smiley,
enthusiastic, positive, confident, self-assured, likeable, and
prepared beyond nervous. Everybody has a different way
of creating his or her mindset
2. Believe means develop a determination to your fate that
can penetrated the fearness of offering product or services
which also greater the trust with the company and believe
in customers that contacted with you. Thus it will create
the better performance in selling activity with low
fearness.
3. Engage will develop personal relationship or engagement
within salesperson and customers. Because selling is more
easier when performing to your friends instead of person
whose do not know who you are.
 17

4. Discover leads people to buy for their reason not because

ofthe salesperson persuasion. The most people does not
understand their motive and major need, so it is important
to dicover and help them to find out the motive and need
first before they making a purchase.
5. Ask question will greater the information about propective
buyer and another information from the environtment that
could become a knowledge which is usefull and beneficial
in selling process.
6. Observe is the salesperson ability listening to the
propective, about their perspective and problem
understanding.
7. Dare means how the salesperson willing to take a risk.
Risk that come from himself and also how the prospective
buyer have to be treaten well in order to build a trust from
risk taking.
8. Own refered to know whose fault it is make when the sales
is not made. The salesperson should not blame his or her
self but must to take a responsibility for it. Learn from
every experience and do something for the future
improvement.
9. Earn means sell for the relationship, not the commission.
“If you make a sale, you can earn money, but if you make
a friend, you can earn fortune.” Those of quote have
explain about if you sell a help to customer, so you will
create relationship for long term profitability and loyality.
10. Prove is use to motivate the salesperson from himself.
Proving their good performance and fantastic result will
lead the salesperson join in a good competition and make
them always do the best in every selling activity.
Sometimes people need to prove about what they can do to
self-actualized theirselves for the better performance.
Those are the 10 commandments to make it successful and
achieve the goals explained by (Gitomer, 2008). In (Hannan, 2004) study
18

of consultative selling explained that’s selling is also a transfer of value

which arranging customer resources (time, talent, and money) to be
transferred to products or services that being purchased by those
customer. Not only in face-to-face selling but sales call or telemarketing
must exchange the value as well. Thus, Selling it is not always about the
exchange of products or services that offered by salesperson with the
money form its customers, but also can become a transfer of value within
sales salesperson and customers in terms of information, expectation,
value added, and long term relationship troughout product or service
which offered.

2.1.2 Sales and Marketing

In (Marshall & Johnston, Relationship Selling and Sales
Management, 2005) introduce about the role of selling inside marketing.
Companies practicing the marketing concept to the customers for
gathering the information in making strategic decision about what
prodcuts to market, where to marketing them and how to get them to the
market, at what price, and in how to communicate with customers. Sales
do selling activity not only for make a sale but also for gathering some of
information that can be use in marketing concept. Furthermore, The 4P’s
Marketing concept (product, place, price, promotion) are aslo known as
marketing mix, become a marketer tools kit that help to develop
marketing strategy which contribute in sales activity. Promotionan Mix or
Merketing promotional mix (advertising, sales promotion, public relation
and publicity, and direct marketing) is also use by salesperson in selling
practice to ensure the practice of integrated marketing communication
(IMC) within a frim’s and customer are work effectively. Those the fact
or sales and marketing are a combination to create the best selling
practice.
According to (Walker, Boyd, John, & Larreche, 2003) there are
competitive factors that affecting a market in term of selling. Market-
oriented perspective that contain by customer-orientation and sales-
orientation which perform in selling activity is the combination of
 19

marketing principle and selling principle that appear from selling practice
in the real world.

2.1.2.1 Customer-Oriented Marketing

Customer Oriented(Walker, Boyd, John, & Larreche, 2003) is
a customer focused strategy that aimed at improving the product or
service quality and reducing the cost with the ultimate objective of
improving customer satisfaction and loyalty. This orientation is more
focus on customer need and perception to make them satisfy
immediately to improve not only in satisfaction but also the retention.
(Kotler & Amstrong, 2006) also said that customer-oriented
marketing is a principle of sustainable marketing which holds a
company should view and organize its marketing activities from the
customer’s point of view. It should work hard to sense, serve, and
satisfy the needs of a defined group of customers.

2.1.2.2 Sales-Oriented Marketing

(Walker, Boyd, John, & Larreche, 2003)Sales-Oriented is
focuses on selling what the firms want to make rather than customer
needs. At this orientation, the marketing is focused on selling effort
rather than more concerning on customer important need. This
orientation are concentrate on sales volume levels that will greater the
market share, steal share from competitors, and seek for new market
segment. The other book of (Perreault & McCarthy, 1999) said that a
Sales-Oriented seeking for some level of unit sales, dollar sales, or
share of markets without referring to a profit. In this oriented, the
marketers are more concerned about sales growth because they think
that the sales growth always leads to more profit. Thus, increase the
probability of purchase is more important for the business.

2.1.3 Salesperson
Salesperson is an individual that represent a company to the
customers by performs the following activities such as prospecting,
communicating, selling, servicng, information gathering, and relationship
20

building (Kotler & Amstrong, 2006).Salesperson also classified into

several kind of job which are related to their activity in making a sale
(Manning & Reece, 2007). Today, salesforce or salesperson must have a
wide range of skill to compete successfully. Not like previous selling
activity which only required simple presentation and closing skill, now a
days, salesperson must be able to use a wide array of skill for modern
selling or 21st sales and marketing activity which also concern on
customer perspective rather than only a selling(Jobber & Lancaster,
2009). Those of skill in modern selling activity are following by:
• Customer retention and deletion
Many companies find out that 80 percent sales come from 20
percent of their customer. It means that retaining existing high
volume of customer will greater the potential to gain highly
profitable customers.
• Database and knowledge management
Modern salesperson needs to be trained in the use and creation of
customer databases and how to use the media or technology to aid
the sales task, such as findng customer and competitor
information.
• Customer relationship management.
Requires the salesforces focuses on the long term relationship not
simply on closing the next sale. The emphasis should be on
creating win-win situations with the customers, so that both
parties will gain the interaction and want to continue the
relationship.
• Marketing the product
The modern salesperson is involved in much broader range of
activities than simply planning and marketing a sales presentation.
Face-to-face interaction not only performing for making a sale but
also conducting in selling activity for gaining beneficial
information so that the salesperson can participate in marketing
area such as product development, market development and
segmentation of markets, as well as the other task supported the
 21

marketing activities such as database management, provision and

analysis of information, and assessing market segment.
• Problem solving and system selling
Modern selling is usually make a salesperson acting as a
consultant that working with customer to identify their problems,
determine major need and specific want, and implacement
effective solution. This approach is different from the traditional
view that make a salesperson become a fast-talker who inform
averything about the product or services attributes and persuade
the customer to buy and walk away with an order.
• Satisfying needs and adding value
The modern salesperson must have the ability to identify and
satisfy the customer in every seingle selling activity, to fulfill the
needs of solutional system rather than a product or services
offered. Some customer do not recognize they have a need, and
the salesperson will have to added the value to the customer’s
need by reducing costs and created a win-win situation for their
company and the customer.

A study by (Marshall, Goebel & Moncrief, 2003) in (Jobber &

Lancaster, 2009) ask sales managers to identify the skills and
knowledge required to be succesfull in selling. Thus, Thereemerged
the top 10 success factors of successful salesperson in every selling
activity, especially in personal selling.

2.2 Personal Selling

Personal selling is the oldest profession in the world. Explained by(Kotler &
Amstrong, 2006), personal selling also determined as a personal presentation by the
firm’s salesperson or sales force with the purpose of making a sale and building
customer relationships.

(Oxford, 2009) Are cited from Business and Management Dictionary on page 423,

“Personal selling is person-to-person interaction between a buyer and seller

in which the seller’s purpose is to persuade the buyer of the merits of the
22

product, to convince the buyer of his or her need for it and develop with the
buyer and an ongoing customer relationship.”

(Marshall & Johnston, Relationship Selling and Sales Management,

2005)Personal Selling involves personal communication (person-to-person
interaction) with a prospect buyer. Personal selling fits into the marketing mix as a
part of a firm’s promotion mix or marketing communication mix, along with
advertising, sales promotion, public relation and publicity, and direct marketing. It is
a process of developing relationship, discovering prospect buyer needs, matching the
appropriate products with these needs, communicating benefits through informing,
reminding, or persuading. It also viewed as a process to add value to the product or
services offered. (Manning & Reece, 2007)Recently, personal selling have been
developed to be more adoptable in marketing concept, value-added personal selling,
and assume the role of a problem solver for helping customer to make buying
decision. The development in personal selling are presented as a part of additional
strategic in selling process with using consultative selling model that combined with
the persuasive activity by which salesperson performs in directing customer
unpredictable behavior about their satisfaction toward purchase decision in the
selling process.

(Jobber & Lancaster, 2009) There is a simple explanation about the strength
and weakness of personal selling, which are shows in the table below:

Table 2.1 Strength and Weakness of Personal Selling

Strenght Weakness
1. Interactive: The question can be 1. Sales activity through
answered and objective to overcome meetings and calls are costly
2. Adaptive: Presentation can be
changed to meet customer needs
3. Complex arguments can be developed
4. Relationship can be built because its
personal nature
5. Provides the opportunity to close the
sale
(Source: Jobber & Lancaster, “Selling and Management: 8th Edition, p. 5)
 23

The activity of selling is to satisfy the customer by promoting the product or

services to solve their problem. Described by (Olson & Peter, 2010) promotional mix
is include by advertising, public relation and publicity, sales promotion, and personal
selling. Referred by (Kotler & Amstrong, 2006)also determine that the personal
selling is the part of promotional mix. Personal selling involves interpersonal
communication between salesperson and individual customers whether face-to-face,
by telephone, via e-mail, through video or web conferences. Personal selling can be
more effective than advertising in more complex selling situatuons. Salespeople can
probe customers to learn more about their problems and then adjust the marketing
offer and presentation to fit the special needs of each customer.

The firm’s representative such as salespersonmay act as a consultant to help

buyers make their selection. However, face-to-face selling and telemarketing is used
to contact with customer and designed to resulting a customer satisfaction through
advice, education, and consultation that performed by the salesperson in personal
selling process.

2.2.1 Face-to-face
(Jobber & Lancaster, 2009, p. 174) explained about the direct method
in salesperson and customer interaction. Direct method estimated the person
who acting on behalf of the companies which used to describe all products
or services that company provided in the direct contact or face-to-face.
(Zeithaml, Bitner, & Gremler, 2010) determined that face-to-face is how to
do a selling that occurs between customer and salesperson in direct contact.
Both verbal and non-verbal behavior is important determinants of quality of
service in term of selling as are tangible cues such as employee dress and
other symbols of service (equipment, informational brochure, or physical
setting).

2.2.2 Telemarketing
(Sugars, 2006)Telemarketing is a form of selling practice that
generally involves communicating with prospects within telephone media.
It typically consist of incoming and outgoing calls or inbound and outbound
telemarketing. (Manning & Reece, 2007) Telemarketing is a channel in
which the sales process is conducted by telephone media. Telemarketing
24

serves two general purpose which are sales and services. (Baack, 2007)
explained that telemarketing is the use of telephone by the salesperson to
make a sales call and presentations to the customer. There are two types of
telemarketing which are:
• Inbound Telemarketing that is occurs when employee handle customer
call (call-in) to response to the customers that make initial call and
designed to serve and attract them
• Outbound telemarketing that is occur when the employee calls the
prospective customer or client (call-out) the objective is to reach as
many as customer we can for raising the campaign or make relationship
with previous purchasers.

2.2.3 Personal Selling Process

Personal selling process provide the steps while salesperson making
a contact with customer or prospect buyer. (Kotler & Amstrong, 2006)
determined the selling process consist of seven steps, which are prospecting
and qualifying, preapproach, approach, presentation and demonstration,
handling objection, clossing, follow up.
• Prospecting and Qualifying
The first step in selling process is prospecting and qualifying,
when the salesperson indentifying qualified potential customers.
This activity can be done by simple research about their financial
ability, volume of business, special needs, location, and
possibilities of growth in order to qualify the prospect.
• Preapproach
In this step, the salesperson lears as much as possible about a
prospective customer before making a sales call or direct contact.
The salesperson must understand all about their organization,
product, and services that they willing to offered in order to
available as a sales consultant. The salesperson also need to set a
strategy about which may be a qualified customer to contact with,
what information that willing to gather, or make an immediate
sale.
 25

• Approach
Approach means when salesperson meets with the customer for
the first time. The salesperson should know how to meet and greet
the buyer and get the relationship off to a good start. This step
involve the salesperson’s appeareance, opening lines, and follow-
up remarks. The opening must be powerfull and positive followed
with key question to learn more about customer major need and
attract the buyer’s attention and curiousity. “As in all stages of the
selling process, listening to the customer is crucial”, said Philip
Kotler.
• Presetation and Demonstration

Presentation and demonstration means the salesperson tells the

“value story” to the buyer, show how the company’s offel
problem solving to the customer. Customer solution problem fits
better with this step of personal selling process by focusing on
“stop selling and start helping” in order to build a relationship and
satisfaction. Consultative selling is also the selling skill that teach
how to do consultancy within a sale by performing listening skill
to provide the best solution to solve customer problem or serving
their major need as (Hannan, 2004) said.

• Handling Objection
The salesperson seeks out, clarifies, and overcome any customer
objection to buying. Answering any of customer question to
ensure them and make them trust on the salesperson capabilities
and companies product or services. The salesperson should use a
positive approach, seek out hidden objection, ast the buyer to
clarify any objection, take objection as opportunities to provide
more information, and turn the objections into a reason for buying.
• Clossing
After handling customer objections, now salesperson tries to close
the sale. In this step, the sales person ask the customer for an order
or persuade them to immediate purchase. Salespeople can use
several closing techniques for persuading customer to buy, ask for
26

order, review point of agreement, offer to help write up the order,

as the buyer preferences, or note the buyer will lose out if the
order is not placed now. The sales person may offer the price
solution such as lower price on discount or an extra quantity at no
charge as if the company give an allowance in order to ensure the
customer will purchase.
• Follow Up
Follow up is necessary if the salesperson want to ensure whether
customer are satisfied or not about the salesperson performance
before purchase (pre-purchase) or after purchase (post-purchase)
and also persuading for repeat buying. Follow up after the sale
also evidenced that the salesperson performing good after-sales-
services for maintaining relationship within customer with
salesperson and customer with company.

2.3 Consultative Selling

Consultative selling emerged in the late of 1960’s and early 1970’s as an
extention of the marketing concept. Consultative selling establish two way
communication between the salesperson and the customer (Manning & Reece,
2007).Since 1970, (Hannan, 2004)Consultative selling has revolutionized key
account sales. Consultative selling is profit improvement selling that help customer
businesses grow and supplier business achieve new earnings along with them.
Consultative selling replaces the traditional selling that stimulate buyer-seller
relationship with win-win partnership situation in profit improvement.

According to (Futrell, 2008) Consultative Selling is the process of helping the

customer achieve strategic short and long term goals through the use of the saller’s
good or services. Consultative selling is also a selling technique to understand the
customer problems through consultation. Depends on (Lovelock & Jochen, 2011),
consultative selling or solution selling provides more service on management and
technical procedure that concentrate on customer to give the best solution for satisfy
them. This, approach is valuable supplement to service and selling process in order to
get more satisfaction on customer.
 27

(Perreault & McCarthy, 1999) Consultative selling approach involve

developing a good understanding of the individual customer’s needs before trying to
close the sales. This name is used because the sales person is almost acting as a
consultant to help identify and solve the customer’s problem. This approach taught,
the salesperson make some general benefit statement to get the customer’s attention
and interest, then the salesperson asks the question and listen carefully to understand
the major customer need. Once their agree on need, so the salesperson tries to show
the customer how the prodct could fill those needs and dragging the customer to the
closing sale phase. The major implementation of consultative selling approach is the
two way communication within salesperson and customer to transfer the value about
the customer major need and the products or service for filling their need.

2.3.1 Consultation
Consultation is the service technique that enhancing in supplementary
service. Enhancing supplementary service is required for add extra value
for customer in order to ensure them to use the core product that offered
or sell. (Sugars, 2006) Consultation is where you actualy have a contact
with the customers, discussing their situation, and how you can meet their
needs. It’s also your chance to show how nice you are. People tend to deal
with the people they like. Sometimes, business with higher prices will win
the job because they seem “friendly”. In (Lovelock & Jochen, 2011),
consultation suggest a simple response to customer’s questions or printed
information that anticipates their needs. Consultation also involve a
dialog to probe customer requirements and then deveop a tailored
solution. Consultation consist of immediate advice from a knowledgeable
service person in response to a request and effective consultation requires
an understanding of each customer’s current situation before suggesting a
suitable course of action.

(Hannan, 2004) The one that doing consultation is called consultant.

Normally consultation can be perform by anyone. In the company that
selling a product or services, salesperson or sales representative are using
this technique of consultancy to improve their personal communication
with customer, also greater the chance of customer to purchase product or
service. The marketer also use this technique to add more value to product
28

and transfer it to the customer. Consultant performing consultancy or

counseling service to the customer and prospect buyer. Consultancy or
counseling service represent more subtle approach to consultation
because it involves helping customers beter understand their situation so
that they can come up with their own solution or action program. This
approach is particularly valuable sumplement to any kind of service or
product that willing to get long-term customer relationship (Lovelock &
Jochen, 2011).

2.3.2 Consultative Selling Process

In (Hannan, 2004)book have explained that the consultative selling
process has four parts as following by:
• It starts with a value database in the values you normally add to
customer operations. Your normal values added “Norms” which
are derived from the value database. The norms is what you
believe in offering the product, wthether the poduct is good or
bad, the benefit is good, the attribute is better, and unique.
• By comparing customer revenue and cost against your norms, a
lead database is automatically created. Lead database acquired
from any kind of information that you have by doing a
communication approach or consulting with customer. From there,
a lead opportunity exist wherever your norms offer a competitive
advantage over a customer’s perspective.
• Leads database are use in generating the proposal. From the lead
data base, we could understand what the customer main problem
and whether they have equal perspective with our product benefit
or not. The proposal will including the profit improvement to
make customer understand about their problem and how to
cooperate with us in term of solving their problem.
• The process culminated with a partnered penetration plan that
locks in your consultative partnership and locks out competition.
Account penetration plan is looking for relationship instead of
only selling. On this part, we sale the best solution and ensure the
 29

customer to cooperate with us not with another

nother business besides
us.

Proposal Generator Account

Value (Profit Imporvement Penetration
Database Proposal)
Plan

Lead
Norms Database

Figure 2.1 Consultative Selling Process by Mc Hannan

(Source: Hannan, “Consultative Selling”, 2004)

Also explained by (Manning & Reece, 2007, pp. 265

265-287),
consultative
onsultative selling presentation involves adding value by accurately
determining the prospect’s needs, selecting an appropriate product or
services, and initiating an effective sales presentation. Consultative
selling presentation focus on identification of the customer’s
customer’s problem
and finding a solution while common presentation selling is different
which concern on product oriented selling that just tell everything
about the product to persuade customer to buy a product or services
offered, no matter they need or do not
n need. There is the differences
between consultatiove selling plan with another common presentation
plan, as given:
30

(a) (b)

Common Consultative
Presentation Sales Plan
Plan •Need Discovery
•Approach •Selection for the
•Presentation solution
(Product •Need-Satisfaction
knowledge) •Servicing the sale
•Demonstration
•Negotiation
•Close
•Servicing the sale

Figure 2.2 Common Presentation Plan(a)

Plan and Consultative Sales
Plan(b)
(Source: Manning & Reece, 2007, pp. 265-287)
265

Common presentation plan consist of approaching, presenting,

demonstrating, negotiating, closing the sale, and servicing after the sale.
While consultative selling plan is consist of need discovery, selecting the
solution, deternining need-satisfaction,
satisfaction, and servicing the sale.
Consultative selling plan has simpleset steps than common presentation
plan. It is because in consultative selling plan, the salesperson are concern
about the consumer major need than offering the approapriate product
product or
services to the customer, in the other hand, the
t common presentation plan
is only concern on how to sell the product or service without
understanding about the major need of the customer. The lack of common
presentation plan is sometimes happen in selling process, i.e. the
salesperson
person will face the customer which do not agree with them, because
the salesperson doesn’t
doesn’ understand the customer main problem and just
sell everything that they have on their
the pocket. This is how the common
presentation plann
ann is going to inefficient and ineffective
ineffective,it will greater the
probability of the customer getting confused,
c disagree, and unwilling to
purchase.Inn consultative selling plan, the salesperson act as a consultant
 31

which not only understand the customer major problem but also giving a
solution throughout an approapriate product or services offered. So that’s
why the customer which threaten by consultative selling plan will getting
more satisfied and trust to cooperate with the salesperson, because the
sales person understand what the customer really need to solve their
problems.
In consultative selling presentation plan, the salesperson should think
of the sales presentation as a four part processes, wich are:
• Part One – Need Discovery
Need discover means the stage of salesperson emphasising on
question. The salesperson questioning rospect to discover the
information from prospect buyer and also understand the major
problem and need.
• Part Two - Selection of the solution
The second part of the consultative sales presentation consist of
selecting or creating solution that will satisfies the prospect’s
buying motives.
• Part Three - Need-Satisfaction presentation
On this stage, the salesperson is less questioning and exchange an
information but more emphasis on statement. The saleperson
rather much informing, persuading, and/or reminding to satsfy the
customer need.
• Part Four - Servicing the sale
These activities, which occur after closing the sale, ensure
maximum custimer satsifaction and set the strategy for a long term
relationship. The objective of this stage is to build repeat business
with the customer.

The more explanation about consultative selling plan in personal selling

activity will explained accurately bellow:

2.3.2.1 Need Discover

A review of the behaviors displayed by high-performance
salesperson in helps customer to understand the importance of precise
need discovery. The salesperosn must have learned how to skillfully
32

diagnose and solve the customer’s prolem, better than competitor. Need
discover is a standard
andard part of the salespresentation with the emphasis the
question during the initial contact with customer.

Need-
Selection of the Satisfaction Servicing the
Need Discovery
solution sale
presentation

Match benefits
Ask appropriate Select informative
with buyingt
question presentation
motive

Listen and "Select

acknowledge ConFigure
customer solution persuasive
response presentation"

Establish buying Make appropriate Select reminder

motive recommendation presentation

Figure 2.3 Consultative Selling Process by Manning & Recce

(Source: Manning & Reece, 2007, pp. 265-287)

265

• Asking question
The effective use of question are using to achive need
identification and need satisfaction understanding by the
salesperson. The type of question you ask, the timming of those
question, and how you pose them will greatly impacts your ability
to create customer value. The Table
Table will show the type of
effective question which are used in consultative selling.
 33

Table 2.2 The Type of Question in Consultative Selling

TYPE OF DEFINITION WHEN USED EXAMPLES

QUESTION
Survey Discovers basic facts Usually at the “Can you describe the
about the buyer’s beginning of a sale problems of using
existing situation and English language at your
problem office?
Probing Designed to uncover and When you feel the “Are the language
clarify the prospect’s need to obtain more problem affecting your
buying problem and the specific information concertration/performanc
circumtances to fully understand e while you are
surrounding the problem the problem working?”
Confirmation Used throughout the After important “So you think the
sales process to verify information has been language knowledge are
the accuracy and assure a exchanged very important to
mutual understanding of improve your working
information exchange by performance?”
the salesperson and the
buyer
Need-Satisfaction Designed to move the When you change “with facilities and
sales process toward the focus from the English First academic
commitment and action problem to a system, we can help you
discussion of the in increasing knowledge
solution of the English language,
thus what aspects are
willing to improved? and
how long do you think
that your english can be
improved?”

(Source: Manning & Reece, 2007, pp. 265-287)

34

• Listen and acknowledge customer response

To fully understand the customer, salesperson must listen closely
and acknowledge every responses from the customer. The
developing listening attitude is major concern on Need Discovery
process, because if the salesperson do not listen carefuly so they
can not understand what the customer problem or the salesperson
could not ask proper question based on the customer answer. Thus
it will ruin the question flows on the need discovery stage in
startng the consultative selling. How to develop listening attitude
is following by:
1. Active listening skill, is the process of sending back to
the prospect about what the listener think or meant,
both in term of content and feelings.
2. Focus on full attention means to give a space or roam
on salesperson mind, to think ahead, and to plan what
the salesperson going to say next.
3. Paraphrase the customer’s meaning provide the
interaction after the customer stops talking. This
technique not only helps to ensure understanding
question but also in creating effective customer relation
strategy. The customer will feel good knowing that you
understand what they have said.
4. Take notes is important because not all salesperson be
able to remind what has been told by customer
accurately. When take a note, you increasing the
memory of what you heard, arranging information
obtained, develop buying solution, and also
demonstrate to the customer that you are actively
listening.
• Establish buying motive
The primary goals of questioning, listening, and acknowledging is
to uncover prospet needs and establish buying motive. The
salesperson
 35

efforts to discover prospect needs can be more effective if they are

focus on questioning, defining, and determining the prospect’s
primary reason for buying.

2.3.2.2 Selection of The Solution

Determining the customer needs and selecting or configurating
customer fitted solution are very critical in sales and marketing today, in
order to satsify their needs. Therefore, an important function of the
salespersion is product solution and recommendation. The salesperson
must choose the product or services that can be provide maximum
satisfaction. Thus, salesperosn must be aware of all product options,
including those offered by the competition. Salesperson who have ability
to conduct an effective value-added needs analysis will achieve tha status
of trusted adviser.
• Match specifict benefit with buying motives
When posible the salesperson should focus on benefits related to each
customers, of course it is a mistake to make benefit statement that do
not relate to the specifict needs of customers. Product and services are
solving tools, thus the salesperosn shloud be able to offer appropriate
product or services to clarifiy the customer problem.
• ConFigure the soltion
Most salespeople bring to the sale a variaty of product or services.
Salespeople mostly offer several hundreds items to the customer
without knowing what the best product or service which suitable for
customer needs. Salespeople is also the person who have many
information about variety of product or services produce by the
company. thus, it is essential for a salespeople who could offer variety
options to customer and make them purchase even only a single
product or services which suitable for customer major need or
problem..
• Make appropriate recommendation
Recommendation is used by salesperson not only for informing the
best optional product or services but also can be a strategy which
available to create customer interest based on the expert person said,
36

such as doctors, financial advisor, government, or public Figure , also

an existing customer. Recommendation also can be use for
recomending another product but not selling those products.

2.3.2.3 Need Satisfaction

The third part of consultatve sales presentaton consist of
communicating to the customers both verbaly and non-verbaly, about the
product that being offered. At this part, the salesperson place less
emphasis on the use of question and begins making statements. These
statements are organized into a presentation which informs, persuades, or
reminds the customer of the most suitable product or services. This part
are conjuction with the sales function (demonstrating, negotiating buyer
resistance, and closing the sale) which provide the best performance of
salespeorson inside the selling activity, also generating better service
performance in order to make the customer satisfy when they are contact
with the salesperson eventhough only for gather the information about the
product offered.
The need-satisfaction strategy involves assesing the customer’s needs,
selecting the product, and deciding whether to use an informative,
persuasive or reminder presentation.
• Informative presentation is to emphasize factual information
which often taken from technical reports, company-prepared
sales literature, or written testimonial from person who have
used the product. This type of information is commonly used
to introduce new product or service with the goal of
transfering the information into customer mind.
• Persuasive presentation is the strategy to influence the
prospect’s beliefs, attitude, or behavior to encourage buyer
action in order to purchase. Enthusiastic and persuasive
salesperson is usually appropriate to make a sales success.
Every buying decision is influenced by booth reason and
emotion, but the amount of attention given by salespersn to
each of the elements during the decision making process can
grater the probability of customer will decide to purchase.
 37

• Reminder presentation sometimes called reinforcement

presentation which have the capabilities to maintain the
market share. The sales are really low if only doing single
sales activity. Manning and Recce know that if the salesperson
do not make a frequent call and remind customer of their
product, the competition will hardly to capture. The remind
presentation is sometimes became a dimension of service after
the sale which occur salespersonel contact with the existing
customer to do a repeat buyer or gathering referals for new
prospect buyer, also inform the customer about new product
that represent the company is still exist.

2.3.2.4 Servicing The Sale

Servicing the sale is amajor way to create value. These activities,
which occur after closing the sale, ensure maximum customer satsifaction
(after the sale) and set the strategy for a long term relationship. Service
actvities include suggestion selling, making credit arrangment, following
through on assurances and promises, and dealing effectively with
complaints.

Consutltative selling practice can be easily mastered, but the truth is the
consultative selling has a complex process that puts great demands on salespersonnel
ability. This approach to personal selling requires an understanding of concept and
principles borrowed from psychology, communication, and sociology. It takes a great
deal of personal communication and self-discipline to become a better sales
consultant or adviser for gaining relationship with customer even before the purchase
is made (satisfaction before purchase, trust, and willingnest to buy) and also after the
purchase is made (retention, repeat purchase, recommendation to another, and less
complaint).

2.3.3 Consultative Selling Factors

The consultative selling approach takes more skill and time when performing
it within selling activity. The salesperson must be able to analyze what motivates a
particular customer and show how to the company’s offering would help the
customer satisfy those needs (Perreault & McCarthy, 1999).
38

(Manning & Reece, 2007) Service, retail, manufacturing, and wholesale firms
that embrace the marketing concept already have adopted or are currently adopting
consultative selling practice. The customer is seen as a person to be served, not
prospect to be sold. Consultant or consultative salesperson believe their function is to
help the buyer make an intelligence decision.

(Hannan, 2004)as an expert lecture of consultative selling has explained that

consultative selling is aprofit improvement selling, which replace the tradisional
selling practice in creating buyer and seller relationship. Consultative selling requires
strategy to improve the traditional selling prectice. It means that stop to selling
product only but start selling the impact to the customer. More accurately taught by
Mack Hannan that there are 4 cotegories identify the salesperson is using
consultative selling skill while doing selling activity or consultative presentation.
Those of four factors are following by:

• The consultant can identify the problem

• The consultant can improve the solution for the problem
• The consultant can assist customer to solve their problem
• The consultant could create commitment and relationship with customer

In the first sentence, a consultant identifies customer problem whether the

probem is costing the customer financial term or the customer could be earning
without the problem. If you mention your product or service, so you are doing a
selling and not consulting.

The second sentence, a consultant quantifies a profit improvement solution to

the problem. Solution given for help customer understand about their major problem.
It also appear to helping customer improve their profits, not to persuading them to
purchase the product or service for what they not actually need but to make customer
understand that what is provided by the company will generate the profit which can
be used by customer. A consultative seller’s day-to-day work is the generation of
profit improvement proposal. Profit improvement adds value to the customer’s
objective thorught the application of product and service system to the customer.
There is 5 criterias of profit improvement that have a greater chance of succeeding
the consultative selling, which are:
 39

• New profits should be achieveable within 365 days, longer time

frames could cause unpredictable risk.
• New profits should be significant for both seller and customer. Shared
profit improvement should not be confused both parties.
• New profits must draw on a major product or services capability to be
profitable for your company. The profit improvement proposal must
affect a major product, service, or operation.
• New profits must be measurable as an asset. If it cannot be measured,
the profit improvement may be imposible to obtain.
• New profits should not be an isolated entitiy but a module that leads
naturally to the next infusion of profits and then to the next one after
that.

The third sentence, a consultant takes a position as amanager of a problem-

solving project and accept single course responsibility for its performance. In the
course of defining the project in term of contribution to customer profit, at this
perspective, you are able to mention product or service for the first time as a solution
for solving the customer problem.

To solve the customer’s problem, a consultant must be known the needs and
major problem. Only when customer’s needs are known, then the expertise,
hardware, and services that compose a system become useful components as the
solution for the problem. This is difference between servicing a product or servicing
the customer, because it is allows your relationship with the customers to be
consultative rather than simple sell and bill relationship.

2.4 Sales Persuasiveness

(Lovelock & Jochen, 2011)Salesperson are an individual acting for a
company by performing one or more of the following activities, such asprospecting,
servicing, information gathering and then interpersonal encounters in which efforts
that are made a particular brand or product are referred to as personal selling.

(Marshall & Johnston, Relationship Selling and Sales Management,

2005)Selling involve persuasive communication which means when the salesperson
communicate with prospect buyer, actually they persuade them and hope to make the
40

prospect buyer to do something. In previous selling method, the salesperson only

focus on communicating hard sell message. This is happen because there is no real
relationship in the selling process. Buyer and saller are likely to be adversarial, little
trust between them, and they are not working for long term or win-win solution.

(Manning & Reece, 2007) Many Salesperson believe that when a real need
for their product exist, the satge is set for a persuasive action throughout persuasive
presentation, explanation, and handling objection. The major goal of using the
persuasive method within a selling process is the strategy to influence the buyer’s
beliefs, attitudes, behavior, and to encourage buyer action on decision making.

In the field of personal selling, persuasion is an acceptable strategy once a

need has been identified and a suitable product has been selected. When it is clear
that the buyer can benefit from ownership of the product or services, an enthusiastc
and persuasive sales method is usually appropriate. The persuasive method on selling
process such as presentation, explanation, and handling objection requires a high
level of training and experience to be effective, because a poorly planned and
delivered persuasive method may raise the saler’s anxiety level. (McClay, 2010, pp.
69-70) Sales persuasiveness is can be said as sales ability or sales performance which
performed by using appropriate interpersonal style and communicaton method to
gain acceptance of a product, service, or idea from prospect and customer with the
greater satisfaction from the customer point of view in the stages of pre-purchase
because of the best persuasive performance by the salesperson while greeting,
introducing, presenting, questioning, and asking the question within selling activities.

2.4.1 Sales Performance in Persuasive Salesperson

Sales persuasiveness is can be said as sales ability or sales performance
which performed by the salesperson in selling activity. The persuasive is very related
to the performance because in every salesperson action are performing the
persuasiveness. While they are greetings, they use persuasiveness to be more closer
and nice to the prospect buyer. When the salesperson are asking the question, their
persuasiveness leads them to be more enthusiastic and concern on every customer
explanation and objection. And so on until the presentation, introducing the product
and service, also adding the value of the product or service, the persuasive skill is use
to make the salesperson could persuade the customer to have willingnest to buy also
 41

trust the product, company, or salesperson itself. That’s why, the better
persuasiveness of salesperson will reflect the best performance of the professional
seller.

2.4.1.1 Persuasion
Persuasion is mostly use in sales presentation and the salesperson always
performing sales presentation in selling activity as their working performance.
Not only on sales presentation but persuasion also consist in every activity in
selling process that required the performance of the seller. Thus, sales
performance is related to how the salesperson performing their selling skill such
as persuasion, and to be persuasive is an essential to achieve a greater sellinggoal.
(Manning & Reece, 2007) Explained that persuasion is the act of presening
product appearls so as to influence the prospect buyer’s belief, attitude, or
behavior. Persuasion is a strategy designed to encourage the buyer to make a
buying decision. Persuasion also can be integrated into every phase of sales
presentation in selling activity. A friendly greeting and a firm handshake at the
time of initial customer contact represent a relationship-oriented form of
persuasion. Aditional forms of persuasion include positioning yourself to ask
question, gaining agreement at each stage of buying process, and asking for the
sale.

Thus persuasion not only just a selling method but very close and related
to the salesperson in doing all of selling acidity, such as when the salesperson
want to ask some question, when the salesperson gaining an agreement, when the
salesperson handling objection, how the salesperson put a statement in
communication, and when saleperson asking for purchase and long term
commitment. Salesperson normaly use persuasion to ensure and attract customer
to buy the product or service offered and greater their sales performance of
making a sale.

2.4.1.2 Performance
Performance is a result of one's work achieved in carrying out the
tasks assigned to him based on the skills, experience, determination, and
working time. Performance appraisal is used as a form of how someone
42

has worked which compared with the target that has been set by the
company (Cushway, 2002, p. 198).

(Mathis, 2006, p378) in (Margaretha, 2006, p12) explained that

the performance is basically what is the employee's doing or do not doing.
Performance is the ability of the labor by using their knowledge and skills
to perform a job. Performance is derived from the actual performance or
job performance that has meaning of a person's quality of labor while
carrying out duties in accordance with the responsibilities that assigned to
him (Mangkunegoro, 2000, p. 67).

According to (Robbins, 2005) describe that performance is the end

result of the activity. Performance is the work of an individual or group to
achieve organizational goals set in accordance with the specified time
period. Thus, performance is everything it takes to do a job that pay
attention to what is done and how to do it in order to achieve the goals set.
Performance can also be the answer of a successful or unsuccessful
activities in achieving objectives. Performance can be influenced by many
things, such as motivation, work ethic, and skills or abilities.

From the Journal Of Personal Selling And Sales Management

(Marshall, Mowen, & Fabes, 1992) explained about the calculation of
salesperson performance evaluation. Psychologist Fritz Heider develop
the concept of salesperson performance evaluation of all their activity
within selling and organizational task. He classified the varuables
evaluators use to interpret the actions of others into three categories which
are (1) performance variables (i.e., task success or effectiveness); (2)
environment mental variables (i.e., task difficulties and luck); and (3)
person or dispositional variables (i.e., ability and effort). Then he
proposed that evaluators to these following equation, given by:

Ability = Task Dificulty ÷ Effort……………………………(1)

Perfromance = (Ability × Effort) ± Task Dificulty………… (2)

In equation 1, the salesperson that performs more difficult task is

expected to have greater ability. Also if 2 sales person same an equal task
 43

difficulty, so their personal ability and effort will determine the higher
ability salesperson. So that in equation 2, a sales maager’s perception of a
salesperson performance is a function of ability times effort and ignore
contectual factors such as territory difficulty or luck, then plus or minus
on the effect of differing task difficulty.

2.4.2 Implementation of sales persuasiveness performance

Determined in (Cateora, Gilly, & Graham, 2009), persuasion is the
ability of “handling objection” or counter every responses from the
customer. The two stages between task-related information exchange and
persuasion are blend together as each side defines and refines its needs
and preferences. Persuasion is a act of asking and answering customers
questions in order to build trust, perception, willingnest, and beliefs of
what salesperson informed, also generating satisfaction before purchase
from how the salesperson could reply any customer objections and
responses professionally. The most powerfull persuasive tactic is actualy
asking more question.

Determine in Oxford Business and Management Dictionary at page 424,

“Persuasive advertising is advertising is used to build selective

demand for a brand by persuading consumer that it offer the best
quality for their money.”

Persuasiveness not only implemented while the salesperson

contact with customer but also performed in advertise the product or
services. According to (Kotler & Amstrong, 2006), Persuasive becoming
a part in selling process and advertising procedure that contact with
customer directly in order to:

• Persuading customer to purchase now

• Persuading customer to receive sales call
• Encourage the customer to switching to your brand
• Changing customer’s perception of product attributes, and
• Building brand preference
44

According to (Futrell, 2008, p. 160) Persuasion means that the

ability to change a person’s belief, position, or course action. The more
effective in communication, then the greater chance of being successful at
persuasion. Memory is recall overtime, Enthusiasm in yourself will show
your excitement toward customer, and credibility is the relation with their
customer through continued empathy, willingness to listen to a specific
need, and continual enthusiasm toward their work and customer. Thus,
salespeople who have established memory, enthusiasm, and credibility
can improve their persuasiveness on the selling process.

Small changes can make a big difference in your powers of

persuasion. Persuasion is not only an art, it is also a science, and
researchers who study it have uncovered a series of hidden rules for
moving people in your direction. (Caldini, Goldstein, & Martin, 2008)
explained six princiles that will guide human behavior toward their
decision making throughout the persuasiveness of the salesperson, which
are:

1. Reciprocation: Reciprocity is simply understand with an

exchanges or changes.People like or even feel obligated to
return favors, or can be said as the obligation to give when you
receive. The first to give is must be personalized and
unexpected.
2. Scarcity: We tend to want what we can’t have. This makes the
“fading or limited time offer” effective. In other words, people
wanted more of those things that are less which can make
them feel satsify. It cost the benefit of using the product or
service being offered by the salesperson, the uniqueness of the
product or service itself and also what they stand to lose if
they are failed to consider on tho se proposal.
3. Authority: People tend to look to experts for guidance. This
can include the principle of people will follow the lead of
credible knowledgable experts. The scince taught how to make
people trust on the salesperson and believing on salesperson
personal before you persuade prospective buyer. The first
 45

thing is the salesperson can introducing their selves how

brilliant they are, or simplicity can assign someone else to do
it for the salesperson. The second things is the salesperson
must be consider to the ethical and costless implementation to
make their being favorable, trustable, and believable by the
customer.
4. Commitment or Consistency: People like to feel that they live
and act in accordance with their values, that they keep their
word. For the salesperson, the consistency is looking for or
asking for the commitment that can be made by both of
customer and salesperson. This principle are considering on
willingnest to do something. Even a small willingnest can
influence the commitment and lead the consistency change. To
make sure the consistency, willingnest must be following by
the appointment to make it clear and commit.
5. Liking: The principle of liking have 3 important factors that
make prospect customer would likely to be persuaded which
are (1) prospect like the people who similar to them, (2) like
people who pay them a compliments, and (3) like people who
cooperate with them.
6. Consensus: Consensus is a social proof, that means people
will look to the actions of others to determine their own. The
behavior of the group frequently guides individuals’ behavior.
Customer oftently look to others for clues on how to react.
Scince of persuading teach that references or recommendation
is the single most effective message to generating the success
of persuading to make customer do it what the salesperson
requested, which are sales order and transaction.

Those of six principles will guide your persuasiveness in doing a

sales within a sales call, presentation, or can be though email, that can
incresingling improve the chances of someone will be persuaded to your
(salesperson) requested.
46

2.5 Customer Satisfaction

In (Marshall, Mowen, & Fabes, 1992), today customer always expect
something that they can earn from the salesperson, not only the product or services
which are purchased but also the service and interaction from both salesperson and
their managers as representative from the company. (Manning & Reece, 2007)
Customer demanding a cluster of satisfaction that arise from the product or services
itself, from the company that makes or distribute the product, and also from the
salesperson who sells and services the product.
(Marshall & Johnston, Relationship Selling and Sales Management, 2005, pp.
176-177)renew estimationof customer satisfaction that the goals of the sales
presentation in selling activity is to satisfy the customer’s need. The customer
satisfaction on these needs can be determined by identifying their problem and
information, applinying knowledge to customers, and creating a plan of action for the
customer that incorporates your prouduct or services to address them. Every sales
presentation should focus on customer satisfaction, no matter how much negotiation
remains and no matter how tough it is to close the sale or build that long term
relationship, the customer should receive some satisfaction as a result of these sales
presentation. Get customer agreement, minimize change conflict, and establish
relationship are also the objective on satisfying the customers before doing any
transaction or can be said as a satisfaction approaching in sales presentation process.
According to the Chally Group report that written in Johnston and Marshall
book “Relationship Selling and Selling Management, explained that customer are
seeing their market place change, driven by rapidly advancing technology, global
competition, shifting demographics, and the consequences of mature markets. To
address these changes, customer seeking support from their suppliers to define their
major need and expectation. There are 3 theme of how customer thinking, needing,
and expecting from the salesperson and their manager, which are:
• Customer wish to focus on their core competencies and outsource to
rest of their business needs.
• They seek suppliers (sals person) that understand the customer’s
business wwll enough to provide solution, not just products or
services.
 47

• Customer want to collaborate with the suppliers (salesperson) who

must prove that they add value to a products or services also
negotiation and transaction within a selling activity.
Explained by (Kotler & Amstrong, 2006), customer satisfaction depends on
the extent to which a product’s perceived performance matches a buyer’s
expectation. If the performance falls short of expectations, the customer is
dissatisfied. If performance matches expectations, the customer is satisfied. If
performance exceeds expectation, the customer is highly satisfied.
Determined by (Hae, Black, & Heitmeyer, 2005) there are several kinds of
satisfaction that found in customer buying decision process which is:
• Pre-Purchase Satisfaction is the satisfaction before purchasing that occur on
evaluation stage influenced by internal search (perception and expectation)
and external search (product attribute)
• Post-Purchase Satisfaction is the satisfaction after purchasing that affected by
customer involvement and product performance.

2.5.1 Post-Purchase Satisfaction

(Gerstner & Posselt, 2005) Found that Post-purchase satisfaction
has a stronger impact on the customer rather than pre-purchase
satisfaction. More importantly, post-purchase satisfaction is considered in
influencing the repurchase intention with the variable as product meet
expectation, customer support, on-time delivery, and availability of the
product that customer wanted. These variables are significantly affected
thewillingest of repurchasing that based on the customer experience and
satisfaction after using the product.

Table 2.3The Post-Purchase (Post-Sale) variables

Variables Explanation
Availability Product was in stock at time of expected
deliver
Tracking Ability to track orders until delivered
On-Time Product arrived when expected
48

Expectation Correct product was delivered and it

worked as described or depicted
Support Availability or ease of contacting courtesy
and knowledge of staff, resolution of issue

(Source: Gerstner, Eitan; Posselt, Thorsten, 2005, p35-47)

2.5.2 Pre-Purchase Satisfaction

(Szymanski & Hise, 2000) In (Gerstner & Posselt, 2005)found
that pre-sale satisfaction (pre-purchase satisfaction) variable as
convenience, site or place design, and financeial security are dominant for
the customer assessment of the satisfaction. (Srinivasan, Anderson, &
Ponnavolu, 2002) also found that pre-purchase satisfaction have positive
effects on word-of-mouth, willingnest to pay, and further loyalty.

Table 2.4 The Pre-Purchase (Pre-Sale) variables

Variables Explanation
Ease How easily were you able to find the product
that you were looking for
Selection Types of products available
Clarity How clear and understandable was the
product information
Price Price relative to other place
Look Overall look, physical evidenvce and design
of the product and everything related to the
product, such as product color and attribute,
store condition, salesperson or employee,
environment.
Ship-Fee Shipping charges
Ship-Options Desired options were available
Charge Total Purchase amount (including shipping
or handling charges) displayed before order
submission.
(Source: Gerstner, Eitan; Posselt, Thorsten, 2005, p35-47)
 49

(Sugars, 2006) The first thing that salesperson need to understand is

customers expect to be satisfied when making contact with any business. They have
a need that they want to be satisfied. They’ve also gone to the trouble of finding out
which business can satisfy that need, then they’ve done something about it.
Customers expect satisfaction, but will actually talk to others about your business if
they get more than they expect. So give them something to talk about and this is the
first step to creating a successful in selling. Good salesperson is proactive. Don’t wait
until you have a problem in this area before doing something about it, before you
think about ways and means of taking care of your customers.

2.6 Purchase Decision

According to (Kotler & Amstrong, 2006), purchase decision is the buyer’s
decision about which brand to purchase. There are 2 factor that affecting purchase
decision which are attitudes of others and unexpected situational factor. Attitudes of
others means the impact of other person toward our decision to purchase (i.e. If
someone important to you thinks that you should buy the lowest-priced car, then the
chances of you will buying a ore expensive car are reduced). In the other hand, the
second factor, the unexpected situational factor which han an impact to purchase
decision means the relative event during the purchase decision making which may
change the purchase decision. As we know, the customer will directly purchase
based on relative factors such as expeted income, expected price, and expected
product, but there is another unpredictable factors which may change those purchase
decision. However, the factor such as unexpected event during the decision making
may change the final purchase decision (i.e. the economy might take turn to the
worst, a close competitor might drop its price, or a friend might report being
disappointed in a product or services performance). Thus, the preferences and even
purchase decision do not always related to the costumer income, payable price or the
product, and expected product itself, but has another impact from the unexpected
event such as economy condition, competiton between competitor, and comments or
suggestion from referals.

Cited from Oxford Business and Management Dictionary, that explained on page
166,
50

“Purchase Decision, decision making is the act of deciding between two or

more alternative courses of action. To determine purchase which explained
on Page 132, Consumer Buying Behavior is the behavior of individual s and
household who buy goods or services for personal consumption.”

(Baack, 2007) From a selling perspective, the salesperson by the personal

selling approach must effectively handle the each stages in customer buying process,
which are:

Problem
recognition

Information
research

Evaluating
alternative

Purchase
decision

Post-
purchase

Figure 2.4 Customer Buying Decision Process

(Source: Baack & Clow, 2007)

• During the problem recognition, salesperson must help the customer to

clarify their major need because most of customer on this stage are not
realy recognize and not completely aware of what their need.

• The salesperson also assist in information search by providing facts

about models, design, and options.

• While the customer evaluate the alternatives, the salesperson may

discuss the benefit of all brands and show how his or her company
options is superior. On this stage, the salesperson try harder to make the
 51

customer trust them and their company in order to make the customer do
not hestitate to buy the products or services that being offered.

• When the purchase decision is made, the salesperson si stop selling the
product and start to selling other related items, such as service contracts.
It is important to make sure the customer believes the product was a
great choice, and also performing the sales persuasiveness to persuade
customer for repeat buy.

• Finally the post-purchase stage also need to be touch by the salesperson

in terms of after sales service and customer relationship management that
performed by them.

Unfortunately, many salesperson in single transaction settings use of high-

pressure tactics to make a sale such as persuasive approach and do not recognize the
important of the first three stages which consider on understanding what is the
customer major need which can be done by consultative selling approach. A
successful salesperson is not only could sell a products or services but also can sell
the value to the customer. The successful salesperson could satisfy customer before
they closing the sale in order to minimize the number of shoppers who walk out with
the chance of confused and frustrated by not having a sufficient information.

Sucessfull consultative salesperson focus a great deal of attention on need

awareness which step one in the buying decision process model. This is where
salesperson can create the most value by helping customer gain an understanding of
their problems and create solution that correct these prolems. Consultative selling
encompaes the concept that salesperson should conduct a systematic assessmet of the
prospect buyer’s situation. This usually involves collecting as much information as
possible prior to the sales call and using a series of carefully worded questions to
obtain the customer’s point of view during the sales. Two way communication wll
provide for a mutual exchange of ideas, feelings, and perceptions.

2.7 Theoretical Framework

In (Margareta, 2012) explained that the phenomenon which are being
observed in their marketing research is the marketing management approaches,
not the approach of financial management or operational management which
52

associated with business. Marketing management create relationship between the

business unit (company) with the market (customer)
(custo using a 3rd party as a link
between those of two parties, such as marketers or salesperson or consultant.
Salesperson connecting the buyer (customer) and seller (business) with the
the goals
to exchange the value within the transaction (money from customer, exchange
with products or services offered by company). The unit of analysis on this
previous research is a financial services company. The concept of marketing
sciencee which are approaches on Margareta’s marketing researchh is related to
the used of consultancyas a provider for the marketing of services.

Figure 2.5 Fanny Margaretha’s Research Theoritical Framework

(Source: Margaretha, 2012)

Differs from Margareta’s research, in this research, consultative

onsultative
selling skill and sales persuasiveness
persuasiven are the factors that affected the customer
pre-purchase satisfaction. In Maragreta’s research, the consultant
performance and ability is perfroming to built trust toward purchase, but at
this marketing research, the performance
performance of salesperson throughout
consultative selling and sales persuasiveness are affecting pre-purchase
pre purchase
satisfaction toward purchase decision. The similarities are located in how the
researcher see the marketing concept which conducted consultancy in sellin
selling
process. Another similarities are comes up with the purchase decision as a
main goal from using those consultancy and sales performance whether
directly or indirectly throughout any intervening variables such as trust or
pre-purchase
purchase satisfaction. This research
r point of view see the customer can be
satisfied before the purchase is made and the marketer also can generate those
 53

satisfaction with providing better selling services throughout consultative

selling method and persuasiveness of the sales performance.
performance. IIf those of 2
factors are performed very well, so the customer will satisfy and then they
will decide to buy the product or services offered, but if are not performed
well so the result is the customer will not satisfy with the salesperson and will
not buy the product or services offered because they will think that the
salesperson are not responsible enough for solving their problems
problems. From the
explanation above, the writerscould
could illutsrated the framework which given
by:

Figure 2.6 Research

Resear Theoritical Framework
(Source: Researcher, 2013
2013)

The theoretical framework explanation is given by:

• Independent variable (X1)

( : Consultative selling
• Independent variable (X2)
( : Sales persuasiveness
• Intervening variable (Y) : Customer Pre-Purchase Satisfaction
• Dependent variable (Z) : Purchase Decision

The framework also explained the relations between variables as follow:

, describe or illustrates the stimultaneous effect

, describe or illustrates the individual effect

, describe or illustrates the correlation relationship between

variables
54

The previous research and this research have similaritis which analyzing
the consultant (or salesperson that act like consultant) who provide consultation
advise which combined with their nature of sales performance in communicating
with the customer to reach an agreement or sales. The differences between the
previous research and this research is appear on the Independent variable (X2)
which analyzing the performance. The previous research said the consultant are
measuring by their overall performance in order to help customer or persuade
them to purchase, but on this research focus on the salesperson performance in
personal selling process which conducted by sales persuasiveness or persuasive
sales communication skill. The performance and consultation technique will
impact the customer trust toward company, in the other hand, persuasiveness of
salesperson and consultative selling skill will also impact customer pre-purchase
satisfaction. The second differences is appear on the Intervening variable that
differentiate customer trust with customer pre-purchase satisfaction, but those 2
variables have similar impact toward customer purchase decision. Another
differences come up on the variable dependent which discussed on the previous
research that the trust can impact upselling in order to make the customer or
client doing another purchase activity or repurchase. In the other hand, this
research conduct the purchase decision affected by customer pre-purchase
satisfaction for a first time buyer whose contact with the salesperson until they
have paid. The explanation in this paragraph mostly tells about differences
between this research with the previous research, but still have similarities on
analyzing the use of consultation technique and worker performance to attract
customer before they are purchase in order to achieve the companu main goal of
sales, is to generating a customerto purchases.

The framework on Figure 2.6 shows that consultative selling and sales
persuasiveness are approaching together and in relation as factors that effect
customer pre-purchase satisfaction. The consultative selling could directly affect
customer purchasedecision and sales persuasiveness can also effect customer
purchase decision. In the process on the field, consultative selling and sales
persuasiveness are effects each other (combined/performing together) to create
greater sales performance and build more satisfaction in customer side to guide
them to do a straight purchase decision.
 55

Thus, there are 4 relationships for this research that given by:

• Consultative selling and sales persuasiveness are influencing customer

pre-purchase satisfaction
• Consultative selling is effecting customer purchase decision
• Sales persuasiveness is effecting customer purchase decision
• Customer pre-purchase satisfaction have an impactin customer purchase
decision

2.8 Hypothesis
in this section, the researcher describe all the hypotheses which are
developed based on related researches and some understanding of the object
under study. Each Hypothesis and the relationship among vawiables can be
seen in the explanation above.

2.8.1 Relationship between consultative selling and sales persuasiveness

which influence customer pre-purchase satisfaction (Hypothesis 1)
Dell Computer Corporation, well known its transactional sales
methods which containt persuading to increase the sales and maintain its
performance of Account Division (Salesperosn) while the consultative
selling practice is also implementing and performing to achive its
objective for long term relationship within company and buyer instead of
increasing the sales volume. From the case study in “Selling Today:
Creating Customer Value” (Manning & Reece, 2007) determined that
some company use both consultative and some kind of transactional
selling approaches together. Those of 2 approaches are combined in order
to achieve greater chance in selling process between sales goals
(transaction) and sales etention (relationship selling) throughout customer
satisfaction which characterized by customer trust and willingnest to buy.
Thus, from the explanation above has been found following explanation
which is:

Ho : Consultative Selling and Sales Persuasiveness are not effecting

customer pre-purchase satisfaction
56

Ha : Consultative Selling and Sales Persuasiveness are effecting customer

pre-purchase satisfaction

2.8.2 Relationship between consultative selling and customer purchase

decision (Hypothesis 2)
Customer-oriented means the marketers are requires seeing the
point of view of customer, the marketers should understand what the
customer need and wants also providing the service based on customer
side. Consultative means a consulting or consultations that develop the
relationship between 2 persons or more in term of communication to
know the problem and solve their problem. (Liu & Leach, 2001) in
(Terho, Haas, Eggert, & Ulaga, 2012) determined that consultative selling
is the process of providing information for helping the customer take
action to achieve their objective. Consultative salespeople is must be
communicative and knowledgeable in order to satisfy the customer
through add value to the product or service that presented and also design
appropriate solution for advising customer decision. Thus, Consultative
selling is can be said as customer-orrieted that has an objective to solve
the customer problem by the received information from the customer then
solve their problem throughout the consultation with the aim of making
customer satisfy and increase the probability of selling within a solution
or consultation given by consultant or salesperson. From the explanation
above has been found following explanation which is:

Ho : There are no relationship between consultative selling and customer

purchase decision

Ha : There are relationship between consultative selling and customer

purchase decision

2.8.3 Relationship between sales persuasiveness and customer purchase

decision (Hypothesis 3)
Selling-orientation is an opposite of customer-oriented, which
focused on needs that are required for selling in market, they focus on
how that they can sell the product to the customer and make the customer
interest with the product or services that they sell. Persuasion is natures of
 57

salespersonnel for persuading a customer to trust the sales and buy the
product. Persuading effort related to sales persuasiveness to contact with
customers. (Horvath, 2011) said convincing people to buy something is
only one of the places you might employ the principles of persuasion.
When I talk to the people in government or non-profit about persuasive
design, their typical knee-jerk reaction is “that’s not for me.” When we
dig a bit in to their reasoning, it typically comes down to one of two
things. They either justify their position by claiming that they are not
selling anything, or they take the high moral ground that “persuading” is
akin to “tricking”. Since they are government or non-profit organization,
it’s an extra focus to not tricking somebody. In this paper, I will explained
deeper in how various principles of persuasion can be used for things
other than selling, it is create trust, shared knowledge, and built a
satisfaction from what a person perform for convince the other people.
The higher the persuasiveness of sales can cause the easiness to make the
customer willing to buy, but in other hand the low sales persuasiveness
will generate the low probability of customer to buy and satisfied by the
selling services. Thus, from the explanation above has been found
following explanation which is:

Ho : There are no relationship between sales persuasiveness and customer

purchase decision

Ha : There are relationship between sales persuasiveness and customer

purchase decision

2.8.4 Relationship between customer pre-purchase satisfaction and

purchase decision (Hypothesis 4)
(Rickwood, 2009) Final decision making is influenced by pre-
purchase behavior. If the prospective buyer are satisfy and have a sense of
willingnest before they are purchased, so it will greater the probability
that the person will purchase the product or services. In this research, the
researcher is analyzing the factor that influence the pre-purchase decision
making.(Gerstner & Posselt, 2005) found that there are 2 kind of
satisfactions within pre-sale and post sale which can generate the
58

purchase intention.While the post-purchase satisfaction has a stronger

impact on the customer repurchase intention or repeat purchase decision,
than the pre-purchase satisfaction have positive effects on the first time
buyer to do purchase. Thus, from the explanation above has been found
following explanation which is:

Ho : There is no relationship between customer pre-purchase satisfaction

purchase decision

Ha : There is relationship between customer pre-purchase satisfaction

purchase decision

2.9 Previous Research

Related research that identifiesabout sales performance such as sales
persuasiveness and sales skill such as consultative selling skill that will affect
the customer pre-purchase satisfaction and give an impact on customer
purchase decision were done before. The summary of those researches can be
seen in Table 2.5:

Table 2.5Previous Research Summary

Researcher Research Object Variable Research Result

Singh & Koshy 249 small and X1: Customer- salesperson's
(2011) medium sized Oriented marketing customer orientation
Indian firms X2: Selling Oriented directly leads to value
(studies in the b2b marketing creation and
customer value Y: Value Creation relationship
research have and relationship development with
focused on development customers. On the
emerging markets, Z: Customer other hand, a sales
especially the Satisfaction orientation destroys
BRIC countries) value, although it
may lead to
relationship
development in the
 59

short-term. We also
found that customer
satisfaction was
related to both types
of salesperson's
orientations. Our
study has a
considerable impact
for small and medium
sized businesses in
the BRIC emerging
markets such as
India, as it throws
light on how firms
can leverage their
suppliers salesforce
to create value
creation with their
customers.
Liu & Leach A mail survey K1: Salesperson Customer satisfaction
(2001)in Singh & were sent a power (performance) is related to a
Koshy (2011) in sample of 735 K2: Consultative customer’s intention
Newel, et all organizational selling (contact to purchase,
(2011) buyer. The current quality) especially for future
customer and L: Perceived business contact.
prospect customer credibility (trust with Enhancing the level
all within salesperson) of customer’s trust
Washington D.C., M: Satisfaction with and perception with a
Georgia, and supplier salesperson may
Florida N: Loyal Behavior ultimately enhance
sales revenue. In
order to do this,
salesperson must be
60

perceived as credible
consultant.
Hostler, Yoon, The study X1: few authors have
Guo, Guimaraes, developed a Recommendation studied how
& Forgionne theoretical model Agent (Persuasion consumer behavior is
(2011) to illustrate the and promotion) affected by those that
impact of RAs on X2: Product Search make suggestions to
online consumer Effectivenes online consumers
behavior. The Y: User Satisfaction based on their recent
model was tested Z: Unplaned shopping behavior.
through an online Purchase Decision Fewer still have
shopping examined the role
simulation over that RAs play in
200 persons which influencing impulse
used a purchasing decisions
collaborative online. Results
filtering based showed that our
product RA. model provided
insights into the
impact of an RA on
online consumer
behavior and thus
provided suggestions
for implementing
effective systems.
Huang & First, 93 data are X: Customer Pre- Previous studies have
Dubinsky, (2013) collected, than the purchase satisfaction addressed customer
second 433 data Y: Purchase Decision satisfaction as a post-
participated. In Making purchase
total, there is 526 phenomenon.
data participated However, examining
in this research. solely post-purchase
satisfaction when
 61

investigating
consumer satisfaction
is incomplete because
multiple stages are
involved in the
purchase decision
making process.
Thus, the result of
this study was there's
the decision making
of first time buyer
can be influenced by
pre-purchase
satisfaction, so
develop an
instrument to assess
customer satisfaction
in the pre-purchase
stage will greater the
chance of making
customer doing
purchase.
Rickwood (2009) 55 participant in X: Customer pre- Final decision
Syndey,Australia. purchase behavior making is influenced
The participants (internal, external, by pre-purchase
that are join are and risk factors) behavior. Pre-
the AXA pty LTD Y: Pre-purchase purchase behavior
(financial Satisfaction which contain
planning and Z: Decision making internal, external, and
insurance) risk factors
customer influenced decision
making, and those
factors of pre-
62

purchase cause a
customer to make a
decision to save for
retirement.Purchase
behavior can be
generated by the sales
reps. performance
and communication
ability to make them
understand of theirs
internal, external, and
risk factors. If the
prospective buyer are
satisfy with sales
reps. performance
and ability of making
them understand of
those 3 factors, so
they will have a sense
of willingnest to
make a decision to
save for retirement
(purchase).
Gerstner & About 1000 X1: Pre-Sale Post-sale satisfaction
Posselt, (2005) sample of Satisfaction has stronger effect on
customer from 1.3 X2: Post-Sale purchase intention
million active Satisfaction than pre-sale
shopers in Y: Purchase satisfaction. While
BizRate.com Intention the post-purchase
which volunteered satisfaction has a
to provide rating stronger impact on
and complete the the customer
feedback form repurchase intention
 63

or repeat purchase
decision, than the
pre-purchase
satisfaction have
positive effects on the
first time buyer to do
purchase.
(Source: Data processed by researcher, 2013)

From the customer point of view, tha salesperson is the essential part
for the customer purchase intention. what is perceived by the customer from
the quality and efforts of the salesperson will affect customer purchasing
decisions for products or services which being offered. If cutsomer feel that the
salesperson has enough ability in explaining the product to be sold and they are
also able to serve consumers with better perfromance, knowledge, and selling
service, thus the customer will feel satsified although they are not yet

conducting any transactions.

Figure 2.7 How Customer Think To Buy Product Theoritical Framwork

(source: Liu & Leach (2001) in Singh & Koshy (2011) in Newel, et all (2011))

Perceived means what the customer received from the service provider.
The service provider for a marketing product or service is a salesperson. In
the beginning of the selling process, the salesperson contact quality and
power are essential to make the customer willing to share their problems and
exchange the value with the seller. The sales person power can be said as how
64

the salesperson could persuade customer to tell about their problem and also
offering the product which suitable for them. And salesperson contact quality
is how the salesperson could build a relation with the customer from how the
they greet the customer, talk briefly and clearly with them, introducing their
self and product offered, and asking the question politely. Once the customer
perceived the salesperson power and contact quality, then they will trust to
the salesperson because they think the salesperson are professional and has an
ability to solve the problem. And then from further contact and handling
objection, the customer will more satisfied and have a willingnest to purchase
the product. From the first time of the selling process. The salesperson are
actively stimulated customer behavior, trust, and satisfaction toward their
selling service. Thus, it makes the customer think that the product or service
offered are good, the company who produce the product are the best, and the
salesperson are trustable, and so on. Finally, it will reduce customer
ambiguity toward the product that they purchased, minimized the intensity of
complaint, gaining more willingnest to purchase at the first time, and
generating the loyalty from the beginning until another repear purchase.

Moreover, another research which concentrate on stimulate customer

satisfaction are evaluated from the marketer point of view. The marketer see
that the customer satisfaction could be generated from their marketing
activities which consist of customer-oriented and selling-oriented that can
perform separated or perform together in creating more satisfaction at
customerside. From the Journal of industrial marketing management, the
writer’s found the framework that shown by:
 65

Figure 2.8 Customer-Oriented; Selling-Oriented; Customer Satsfaction

Theoritical Framework
(Source: Singh and Koshy Journal Framework)

From the framework, we could see that customer-oriented and selling-

oriented are perform together to reach customer satisfaction. Customer-
oriented can be formed by consultative selling that provide consultancy to
solve customer problem, and sales persuasiveness is a kind of selling-oriented
that focus on persuade the customer to get direct purchase and reach immediate
relations with the customer. Customer-oriented and selling-oriented have
different objective in selling process but produce same result on value creation,
then it will develop relationship between the seller and buyer before it build a
satisfaction in customer. In the sum of all, customer-orientation and selling-
orientation can also directly affecting customer satisfaction.

(Huang & Dubinsky, 2013) from theirs journal of service industries,

“Measuring customer pre-purchase satisfaction in a retail setting” explained
that the customer satisfaction is also involved in the pre-purchase stage that
will determine the purchase decision making process. On that research, the
researcher are developing a reliable and valid scale as proposed by (Churcill,
1979, P64-73) and (DeVellis, 2003) in order to measure the relation of pre-
purchase satisfaction toward customer purchase decision. The variable which
are pre-purchase satisfaction will influence the purchase decision. On the result
founded that satisfaction not only appear on post–purchase stage but also in
pre-purchase, determining if the customer satisfy so they will decide to
purchase after that if the product performance is the same with their
expectation, so they will more satisfy.
66

Figure 2.9 Pre-Sale Satisaction and Post-Sale Sastifaction Influence Purchase

(Source: Gerstner & Posselt, Journal of Interactive Marketing, volume 9,
number 4, autumn 2005)

Professor Gerstner and Posselt also said that Satisfaction are comes up
in both pre-sale and post-sale activity. The impact of post-sale satsifaction is
10 times stronger to make customer willing to do a repeat purchase or shop
again. It follows by the most important factors that influence repurchase
intention which are product met expectation, customer support, on-time
delivery, and availability of the product. In the other hand, pre-sale
satsifaction which consider on the variable of convenience, physical
evidence, product attribute, selling service perfromance, information and
demonstration, also financial security in transaction also found to create
positive effect on personal selling activity, word-of-mouth marketing,
improving customer willingnest to pay, and loyalty for the first time buyer.
Supported by Szymanski and Hise (2000) and Wolfinbarger and Gilly (2003),
the pre-sale (pre-purchase) satsifaction are straighly affected customer
purchase decision in buying the product or serviced offered by the marketer.

Thus, the previous research underlie this research. The different

between previous researches with this research is the name of independent
variable which are consultative selling skill that can be said as customer-
orientation whose play the role to organize the relationship with the customer.
At the same time, sales persuasiveness that is taking a part in terms of sales-
orientation to persuade and building the customer trust. Those of two
independent variable are have the same meaning and objective with customer-
oriented and selling oriented, but in this research the researcher is more focus
 67

on the name of skill and performance that performing. More importantly,

consultative selling skill and sales persuasiveness performance will generate
the customer satisfaction before purchase called pre-purchase satisfaction,
because the customer feels that they really served well , informed well, be
favored by the salespeople, and the sales people really take care of their
problem. After that the customer satisfaction will greater the relationship and
trust with salespeople thengenerately impact on purchase decision. Finally, the
effectiveness can be seen as a objective of personal selling that is making
purchase, but it achieved through out customer pre-purchase satisfaction and
several personal selling activity that performed with consultative selling skill
and sales persuasiveness.