During the process of transforming a showroom visitor to a used car buyer, it is vital to note that if a seller does not cater to each of these three roles, he may loose the customer.
Insuring a used car's features are the ones the potential customer has in mind and that the vehicle will best satisfy the user's want or need has to be a primary goal of a seller.
The payer role is equally important as without a payer a sale will not transpire. In the past, the payer role was frequently minimized or ignored. In today's used car market, as financing is a profitable business, they payer's role is a vital component for insuring a sale is completed, as well as a contributor to the profit factor.
The used car's buyer role is also vital as a buyer's job is to find the right used car and the way to order or acquire the vehicle. If/when the buyer's access to the used car is constrained or the used car he/she is specifically seeking is not immediately available, the sale may not occur.
In many instances, the three roles are one and the same customer. Other times, the user may be the payer but not the buyer, such as in the case when stockbrokers act as agents for clients or when a parent purchases a used car for a child or vice versa.
In companies, a manager or buyer may purchase a used car for employees to utilize for business purposes. Other variations/combinations of the three roles are noted in used car sales and other business transactions.
When a single customer embodies all three roles, as is usual, in the purchase of a used car, a seller usually utilizes a variety of strategies to secure a sale.
A need is defined as "an unsatisfactory condition of the customer that leads him or her to an action that will make the condition better. A want is a desire to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition. The difference between a want and a need is the driver. Wants only surface after needs are satisfied. For instance, almost any vehicle will satisfy an individual's need for transportation from here to there. A Corvette; Hummer; Cadillac or Lexus, however, additionally satisfies a "want" to gain performance excitement, to obtain prestige among peers, or project a different self-image.
An individual him/her himself and his/her environment determine a person's needs. Genetics, biogenics and psychogenics reportedly determine a person's physical characteristics, which in turn will influence his/her needs and ultimately, in some form influence the process of buying a used car, as well as, other products to meet his/her needs and wants.
An individual's wants are impacted or," determined by the personal socioeconomic context and the environmental socioeconomic context surrounding the customer. The personal context consists of three dimensions: personal worth, institutions, and culture." (Ibid) Personal worth (financial) is reflected by financial resources a customer can access and may be obtained from his/her income; assets; borrowing power; income. Wants are impacted by these resources as they determine a customer's purchasing power. Consequently, an individual with more economic resources can purchase a new of used luxury car with greater driving excitement and more social prestige.
A culture's influence, another dimension, influences a customer's wants, along with impacting what a person does or becomes.
Whether customers from cultures which value age; products; business success; etc. will likely determine whether they purchase a used car that represents excitement; value (related to age and wisdom) or a classical, sensible style. A customer's culture will also influence what type sales person and/or personality they will be receptive to. Economy, technology, and public policy make up the environmental context, additional influences an individual's buying decisions.
Tools a seller can utilize to create market values to help influence a used car's showroom visitor to become a customer include:
Price Exclusivity
Limited Availability
Social image ads
Emotional Communications
Payer Values Price Credit Financing
Low price from lower margins
Deferred payment
Customized financing
Buyer Values Service Convenience Personalization
Product display and demonstration
Knowledgeable salespersons
Personal attention and courtesy." (Ibid)
The offer of some customization or "extra" to dividable customers without rising prices is one way to add to customer value. Prestige Pricing, the practice of pricing a product so that not every customer can afford it, "ensures that the product will be sold in limited target markets. Ubiquitous availability and universal use of a product detracts from its exclusivity." (Ibid) Expensive American vehicles such as Corvette and Cadillac denote social prestige for/to owners.
The term, "Limited Availability," can be used by sellers to add prestige and/or social value to cars such as a "Cobra limited edition of Ford Mustang," or a vintage American used cars. Some...
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