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Suggestive Selling in the Restaurant Business : a Framework Connecting Selling Approaches to Sales Encounter Outcomes By Jean Lagueux Institut de tourisme.

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Presentation on theme: "Suggestive Selling in the Restaurant Business : a Framework Connecting Selling Approaches to Sales Encounter Outcomes By Jean Lagueux Institut de tourisme."— Presentation transcript:

1 Suggestive Selling in the Restaurant Business : a Framework Connecting Selling Approaches to Sales Encounter Outcomes By Jean Lagueux Institut de tourisme et dhôtellerie du Québec 1

2 Objectives Three foldThree fold –Define a framework of selling approach in the environment of restaurant selling. –Measure the impact of the different sales approach on sales encounter outcomes. –Explore the restaurant / waiters social responsibility context 2

3 Selling Styles Suggestive sellingSuggestive selling Consultative sellingConsultative selling Transactional sellingTransactional selling Persuasive sellingPersuasive selling Seduction sellingSeduction selling Relational sellingRelational selling Partnership sellingPartnership selling Adaptive sellingAdaptive selling Cross-sellingCross-selling Up-sellingUp-selling Add-on sellingAdd-on selling Value-added sellingValue-added selling 3

4 Suggestive Selling LacksLacks –Proper definition –Theoretical basis –Based on : Professional experienceProfessional experience Anecdotal evidenceAnecdotal evidence –Effects are not well defined 4

5 Background Courtesy in a restaurant setting and suggestive selling (Brooks, 1961)Courtesy in a restaurant setting and suggestive selling (Brooks, 1961) Factors influencing restaurant servers to use suggestive selling (Johnson & Masotti, 1986)Factors influencing restaurant servers to use suggestive selling (Johnson & Masotti, 1986) –Definition : asking a patron if he would like wine with the meal ordered Suggestive selling versus the volume of business (Redmon & Dickinson 1990)Suggestive selling versus the volume of business (Redmon & Dickinson 1990) Recommendations made by the server at different times of the meal (Lynn, 2003)Recommendations made by the server at different times of the meal (Lynn, 2003) the art of selling a customer the original item he or she came in to buy, plus additional items that complement the original item (Kizer & Bender 2007)the art of selling a customer the original item he or she came in to buy, plus additional items that complement the original item (Kizer & Bender 2007) 70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall, 2009)70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall, 2009) ConclusionConclusion –Economic benefits –Not connected to customers needs 5

6 Consultative Selling Type of awareness attributed to restaurant serversType of awareness attributed to restaurant servers –Mars and Nicod (1984) Customer-oriented selling :Customer-oriented selling : –Comes from the marketing concept –Customer satisfaction is integrated in the equation of success –Seen as a problem solver Saxe and Weitz (1982)Saxe and Weitz (1982) Providing information - an advisorProviding information - an advisor –Job satisfaction, organizational commitment, sales training and sales skills Liu and Leach (2001)Liu and Leach (2001) 6

7 Consultative Selling Approach used in situations when a customer needs to find a solution to a problem that has not yet been resolved or when he needs help or a suggestionApproach used in situations when a customer needs to find a solution to a problem that has not yet been resolved or when he needs help or a suggestion –Zeyl (2003) Upselling technique that has the goal to increase the average check while enhancing the guest experienceUpselling technique that has the goal to increase the average check while enhancing the guest experience –Shock, Bowen, and Stefanelli (2004) ConclusionConclusion –Difficulty assessing customers needs –Specific needs have not been satisfied –New approaches can be suggested to him 7

8 Transaction Selling Products are well known to the customer (Zeyl, 2003) –Large amount of information available to the customer –Previous knowledge –The use of salespeople is less required –To describe features –To take orders 8

9 Persuasion Selling Manske and Cordua (2005)Manske and Cordua (2005) –Use of different approaches to persuade –Reciprocity –Scarcity –Liking –Credibility –Power –Similarities –Physical attractiveness –Empathy Extrinsic aspects of the purchase situation.Extrinsic aspects of the purchase situation. 9

10 The Server Self-Monitoring Adaptation in response to the perceived differences (Snyder, 1974)Adaptation in response to the perceived differences (Snyder, 1974) Motivation to alter the behaviorMotivation to alter the behavior –Theory of social exchange (Thibaut & Kelley, 1952) Cost of effort versus personal gainCost of effort versus personal gain –Adaptive selling EmpathyEmpathy AndrogynyAndrogyny Being an openerBeing an opener Locus of controlLocus of control Self-efficacySelf-efficacy Service Predisposition (Lee-Ross, 2000)Service Predisposition (Lee-Ross, 2000) 10

11 Selling Environment Differences with retail settings Sequence of service (McMahon & Schmelzer, 1989)Sequence of service (McMahon & Schmelzer, 1989) –Roles and responsibilities –Simultaneity Contact pointsContact points Captive aspect of the service encounterCaptive aspect of the service encounter The importance of the menuThe importance of the menu 11

12 What makes it suggestive ? Bringing to active memory, optionsBringing to active memory, options –Forgotten –Ignored –Unknown Altered behaviourAltered behaviour –Considering needs –Trying to persuade Not simply related to presentationNot simply related to presentation 12

13 Transaction selling Sales Orientation Customer Orientation Consultative selling Persuasion selling Low High Low High Figure 1: Suggestive Selling 13

14 Transaction selling Sales performance Customer satisfaction Consultative selling Persuasion selling Figure 2: Effects of suggestive selling Variable Higher Lower Variable Higher Variable 14

15 Contribution Definition for suggestive sellingDefinition for suggestive selling Redefining the SO-CO in a service environmentRedefining the SO-CO in a service environment Contrasting sales to customer satisfaction in a new wayContrasting sales to customer satisfaction in a new way 15

16 Conclusion Marketing my productsMarketing my products Marketing to the customerMarketing to the customer Marketing with the customerMarketing with the customer 16


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