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Suggestive Selling in the RestaurantSuggestive Selling in the Restaurant
Business : a Framework ConnectingBusiness : a Framework Connecting
Selling Approaches to SalesSelling Approaches to Sales
Encounter OutcomesEncounter Outcomes
By Jean LagueuxBy Jean Lagueux
Institut de tourisme et dInstitut de tourisme et d’hôtellerie du Québec’hôtellerie du Québec
1
ObjectivesObjectives
• Three foldThree fold
– Define a framework of selling approach in theDefine a framework of selling approach in the
environment of restaurant selling.environment of restaurant selling.
– Measure the impact of the different salesMeasure the impact of the different sales
approach on sales encounter outcomes.approach on sales encounter outcomes.
– Explore the restaurant / waiterExplore the restaurant / waiter’s social’s social
responsibility contextresponsibility context
2
Selling StylesSelling 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
Suggestive SellingSuggestive Selling
• LacksLacks
– Proper definitionProper definition
– Theoretical basisTheoretical basis
– Based on :Based on :
• Professional experienceProfessional experience
• Anecdotal evidenceAnecdotal evidence
– Effects are not well definedEffects are not well defined
4
BackgroundBackground
• 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 &Factors influencing restaurant servers to use suggestive selling (Johnson &
Masotti, 1986)Masotti, 1986)
– Definition :Definition : “asking a patron if he would like wine with the meal ordered”“asking a patron if he would like wine with the meal ordered”
• Suggestive selling versus the volume of business (Redmon & DickinsonSuggestive selling versus the volume of business (Redmon & Dickinson
1990)1990)
• Recommendations made by the server at different times of the meal (Lynn,Recommendations made by the server at different times of the meal (Lynn,
2003)2003)
• ““the art of selling a customer the original item he or she came in to buy, plusthe 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)additional items that complement the original item” (Kizer & Bender 2007)
• 70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall,70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall,
2009)2009)
• ConclusionConclusion
– Economic benefitsEconomic benefits
– Not connected to customerNot connected to customer’s needs’s needs
5
Consultative SellingConsultative Selling
• Type of awareness attributed to restaurant serversType of awareness attributed to restaurant servers
– Mars and Nicod (1984)Mars and Nicod (1984)
• Customer-oriented selling :Customer-oriented selling :
– Comes from the marketing conceptComes from the marketing concept
– Customer satisfaction is integrated in the equation of successCustomer satisfaction is integrated in the equation of success
– Seen as a problem solverSeen 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 andJob satisfaction, organizational commitment, sales training and
sales skillssales skills
• Liu and Leach (2001)Liu and Leach (2001)
6
Consultative SellingConsultative Selling
• Approach used in situations when a customer needs toApproach used in situations when a customer needs to
find a solution to a problem that has not yet beenfind a solution to a problem that has not yet been
resolved or when he needs help or a suggestionresolved or when he needs help or a suggestion
– Zeyl (2003)Zeyl (2003)
• Upselling technique that has the goal to increase theUpselling technique that has the goal to increase the
average check while enhancing the guest experienceaverage check while enhancing the guest experience
– Shock, Bowen, and StefanelliShock, Bowen, and Stefanelli (2004)(2004)
• ConclusionConclusion
– Difficulty assessing customer’Difficulty assessing customer’ss needsneeds
– Specific needs have not been satisfiedSpecific needs have not been satisfied
– New approaches can be suggested to himNew approaches can be suggested to him
7
Transaction SellingTransaction Selling
Products are well known to the customerProducts are well known to the customer (Zeyl, 2003)(Zeyl, 2003)
– Large amount of information available to the customerLarge amount of information available to the customer
– Previous knowledgePrevious knowledge
– The use of salespeople is less requiredThe use of salespeople is less required
– To describe featuresTo describe features
– To take ordersTo take orders
8
Persuasion SellingPersuasion Selling
• Manske and Cordua (2005)Manske and Cordua (2005)
– Use of different approaches to persuadeUse of different approaches to persuade
– ReciprocityReciprocity
– ScarcityScarcity
– LikingLiking
– CredibilityCredibility
– PowerPower
– SimilaritiesSimilarities
– Physical attractivenessPhysical attractiveness
– EmpathyEmpathy
• Extrinsic aspects of the purchase situation.Extrinsic aspects of the purchase situation. 9
The ServerThe Server
Self-MonitoringSelf-Monitoring
• Adaptation in response to the perceived differencesAdaptation in response to the perceived differences
(Snyder, 1974)(Snyder, 1974)
• Motivation to alter the behaviorMotivation to alter the behavior
– Theory of social exchangeTheory of social exchange (Thibaut & Kelley, 1952)(Thibaut & Kelley, 1952)
• Cost of effort versus personal gainCost of effort versus personal gain
– Adaptive sellingAdaptive selling
• EmpathyEmpathy
• AndrogynyAndrogyny
• Being an openerBeing an opener
• Locus of controlLocus of control
• Self-efficacySelf-efficacy
• Service PredispositionService Predisposition (Lee-Ross, 2000)(Lee-Ross, 2000)
10
Selling EnvironmentSelling Environment
Differences with retail settingsDifferences with retail settings
• Sequence of serviceSequence of service (McMahon & Schmelzer, 1989)(McMahon & Schmelzer, 1989)
– Roles and responsibilitiesRoles and responsibilities
– SimultaneitySimultaneity
• Contact pointsContact points
• Captive aspect of the service encounterCaptive aspect of the service encounter
• The importance of the menuThe importance of the menu
11
What makes it suggestive ?What makes it suggestive ?
• Bringing to active memory, optionsBringing to active memory, options
– ForgottenForgotten
– IgnoredIgnored
– UnknownUnknown
• Altered behaviourAltered behaviour
– Considering needsConsidering needs
– Trying to persuadeTrying to persuade
• Not simply related to presentationNot simply related to presentation
12
13
Transaction
selling
Sales performance
Customer satisfaction
Consultative
selling
Persuasion
selling
Figure 2: Effects of suggestive selling
Variabl
e
Higher
Lower
Variabl
e
Higher
Variabl
e
14
ContributionContribution
• Definition for suggestive sellingDefinition for suggestive selling
• Redefining the SO-CO in a serviceRedefining the SO-CO in a service
environmentenvironment
• Contrasting sales to customer satisfactionContrasting sales to customer satisfaction
in a new wayin a new way
15
ConclusionConclusion
• Marketing my productsMarketing my products
• Marketing to the customerMarketing to the customer
• Marketing with the customerMarketing with the customer
16

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Lagueux suggestive selling

  • 1. Suggestive Selling in the RestaurantSuggestive Selling in the Restaurant Business : a Framework ConnectingBusiness : a Framework Connecting Selling Approaches to SalesSelling Approaches to Sales Encounter OutcomesEncounter Outcomes By Jean LagueuxBy Jean Lagueux Institut de tourisme et dInstitut de tourisme et d’hĂ´tellerie du QuĂŠbec’hĂ´tellerie du QuĂŠbec 1
  • 2. ObjectivesObjectives • Three foldThree fold – Define a framework of selling approach in theDefine a framework of selling approach in the environment of restaurant selling.environment of restaurant selling. – Measure the impact of the different salesMeasure the impact of the different sales approach on sales encounter outcomes.approach on sales encounter outcomes. – Explore the restaurant / waiterExplore the restaurant / waiter’s social’s social responsibility contextresponsibility context 2
  • 3. Selling StylesSelling 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 SellingSuggestive Selling • LacksLacks – Proper definitionProper definition – Theoretical basisTheoretical basis – Based on :Based on : • Professional experienceProfessional experience • Anecdotal evidenceAnecdotal evidence – Effects are not well definedEffects are not well defined 4
  • 5. BackgroundBackground • 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 &Factors influencing restaurant servers to use suggestive selling (Johnson & Masotti, 1986)Masotti, 1986) – Definition :Definition : “asking a patron if he would like wine with the meal ordered”“asking a patron if he would like wine with the meal ordered” • Suggestive selling versus the volume of business (Redmon & DickinsonSuggestive selling versus the volume of business (Redmon & Dickinson 1990)1990) • Recommendations made by the server at different times of the meal (Lynn,Recommendations made by the server at different times of the meal (Lynn, 2003)2003) • ““the art of selling a customer the original item he or she came in to buy, plusthe 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)additional items that complement the original item” (Kizer & Bender 2007) • 70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall,70 % of 1066 restaurant servers use suggestive selling (Lynn & McCall, 2009)2009) • ConclusionConclusion – Economic benefitsEconomic benefits – Not connected to customerNot connected to customer’s needs’s needs 5
  • 6. Consultative SellingConsultative Selling • Type of awareness attributed to restaurant serversType of awareness attributed to restaurant servers – Mars and Nicod (1984)Mars and Nicod (1984) • Customer-oriented selling :Customer-oriented selling : – Comes from the marketing conceptComes from the marketing concept – Customer satisfaction is integrated in the equation of successCustomer satisfaction is integrated in the equation of success – Seen as a problem solverSeen 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 andJob satisfaction, organizational commitment, sales training and sales skillssales skills • Liu and Leach (2001)Liu and Leach (2001) 6
  • 7. Consultative SellingConsultative Selling • Approach used in situations when a customer needs toApproach used in situations when a customer needs to find a solution to a problem that has not yet beenfind a solution to a problem that has not yet been resolved or when he needs help or a suggestionresolved or when he needs help or a suggestion – Zeyl (2003)Zeyl (2003) • Upselling technique that has the goal to increase theUpselling technique that has the goal to increase the average check while enhancing the guest experienceaverage check while enhancing the guest experience – Shock, Bowen, and StefanelliShock, Bowen, and Stefanelli (2004)(2004) • ConclusionConclusion – Difficulty assessing customer’Difficulty assessing customer’ss needsneeds – Specific needs have not been satisfiedSpecific needs have not been satisfied – New approaches can be suggested to himNew approaches can be suggested to him 7
  • 8. Transaction SellingTransaction Selling Products are well known to the customerProducts are well known to the customer (Zeyl, 2003)(Zeyl, 2003) – Large amount of information available to the customerLarge amount of information available to the customer – Previous knowledgePrevious knowledge – The use of salespeople is less requiredThe use of salespeople is less required – To describe featuresTo describe features – To take ordersTo take orders 8
  • 9. Persuasion SellingPersuasion Selling • Manske and Cordua (2005)Manske and Cordua (2005) – Use of different approaches to persuadeUse of different approaches to persuade – ReciprocityReciprocity – ScarcityScarcity – LikingLiking – CredibilityCredibility – PowerPower – SimilaritiesSimilarities – Physical attractivenessPhysical attractiveness – EmpathyEmpathy • Extrinsic aspects of the purchase situation.Extrinsic aspects of the purchase situation. 9
  • 10. The ServerThe Server Self-MonitoringSelf-Monitoring • Adaptation in response to the perceived differencesAdaptation in response to the perceived differences (Snyder, 1974)(Snyder, 1974) • Motivation to alter the behaviorMotivation to alter the behavior – Theory of social exchangeTheory of social exchange (Thibaut & Kelley, 1952)(Thibaut & Kelley, 1952) • Cost of effort versus personal gainCost of effort versus personal gain – Adaptive sellingAdaptive selling • EmpathyEmpathy • AndrogynyAndrogyny • Being an openerBeing an opener • Locus of controlLocus of control • Self-efficacySelf-efficacy • Service PredispositionService Predisposition (Lee-Ross, 2000)(Lee-Ross, 2000) 10
  • 11. Selling EnvironmentSelling Environment Differences with retail settingsDifferences with retail settings • Sequence of serviceSequence of service (McMahon & Schmelzer, 1989)(McMahon & Schmelzer, 1989) – Roles and responsibilitiesRoles and responsibilities – SimultaneitySimultaneity • 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 ?What makes it suggestive ? • Bringing to active memory, optionsBringing to active memory, options – ForgottenForgotten – IgnoredIgnored – UnknownUnknown • Altered behaviourAltered behaviour – Considering needsConsidering needs – Trying to persuadeTrying to persuade • Not simply related to presentationNot simply related to presentation 12
  • 13. 13
  • 14. Transaction selling Sales performance Customer satisfaction Consultative selling Persuasion selling Figure 2: Effects of suggestive selling Variabl e Higher Lower Variabl e Higher Variabl e 14
  • 15. ContributionContribution • Definition for suggestive sellingDefinition for suggestive selling • Redefining the SO-CO in a serviceRedefining the SO-CO in a service environmentenvironment • Contrasting sales to customer satisfactionContrasting sales to customer satisfaction in a new wayin a new way 15
  • 16. ConclusionConclusion • Marketing my productsMarketing my products • Marketing to the customerMarketing to the customer • Marketing with the customerMarketing with the customer 16