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

Objectives Three 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 / waiter’s social responsibility context

Selling Styles Suggestive selling Partnership selling Consultative selling Transactional selling Persuasive selling Seduction selling Relational selling Partnership selling Adaptive selling Cross-selling Up-selling Add-on selling Value-added selling

Suggestive Selling Lacks Proper definition Theoretical basis Based on : Professional experience Anecdotal evidence Effects are not well defined

Background Courtesy in a restaurant setting and suggestive selling (Brooks, 1961) 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) 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) 70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall, 2009) Conclusion Economic benefits Not connected to customer’s needs

Consultative Selling Type of awareness attributed to restaurant servers Mars and Nicod (1984) 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) Providing information - an advisor Job satisfaction, organizational commitment, sales training and sales skills Liu and Leach (2001)

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 suggestion Zeyl (2003) Upselling technique that has the goal to increase the average check while enhancing the guest experience Shock, Bowen, and Stefanelli (2004) Conclusion Difficulty assessing customer’s needs Specific needs have not been satisfied New approaches can be suggested to him

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

Persuasion Selling 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.

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

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

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

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

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

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

Conclusion Marketing my products Marketing to the customer Marketing with the customer