CHAPTER 3
The Psychology of Selling: Why People Buy
LECTURE OUTLINE
I. THE CORE PRINCIPLES: BENEFITS
A. Customers want to trust you.
B. Do the right thing for customers and tell them the truth even if that means a
“no sale.”
C. Unselfishly try to help customers meet their needs, not just make a sale.
II. WHY PEOPLE BUY – THE BLACK BOX APPROACH
A. Black Box – the internal mental processes that a person goes through when making a
decision.
B. Stimulus-Response Model – assumes that prospects will respond in some predictable
manner to the sales presentation.
C. Certain things are known about a prospect’s mental process:
1. People buy for both practical and psychological reasons.
2. Methods are known that salespeople can use to help determine the prospect’s
thoughts during sales presentations.
3. We know many of the factors that buyers consider in purchase decisions.
III. ORGANIZATIONAL VERSUS CONSUMER BUYING
A. Consumer buying refers to the purchasing activities of individuals and households for
their personal use, consumption or to meet the collective needs of the household unit such
as a family or individual
1. When salespeople (representing a business) sell to consumers (i.e. the end
user), this is called B2C, or business–to-consumer selling.
B. Organizational buying includes all of the activities of organizational members as they
define a buying situation and identify, evaluate, and choose among alternative brands and
suppliers
1. When salespeople, representing a business, sell to other businesses, this is
IV. PSYCHLOLGICAL INFLUENCES ON BUYING
A. Motivation to buy must exist.
2. Wants – needs learned by the person.
4. Have psychological needs (Cadillac).
B. Economic needs – The best value for their money.
1. Economic needs – the buyer’s need to purchase the most satisfying product for
the money.
a. Price – higher prices can be overshadowed by superior quality.
b. Quality – performance, dependability, and durability.
c. Other examples:
a. Increase my sales
b. Increase the levels of my customers’ satisfaction.
C. Awareness of needs: Some buyers are unsure.
1. Three degrees (levels) of need awareness:
a. Conscious—fully known needs.
b. Preconscious—may not be fully aware of needs.
c. Unconscious—have needs but do not know what they are.
V. APPLYING YOUR UNDERSTANDING OF NEEDS
A. By understanding the customers’ needs, you begin to recognize how you can assist the
customers and their firms.
1. In some situations, the buyer is unhappy about the firm’s current situation and
that better options exist.
2. In other instances, a buyer may not be aware of a better solution.
3. Or, a buyer may be so busy with her current responsibilities, she has not
considered new approaches, processes of solutions.
a. The salesperson will need to create awareness of the opportunity and
VI. HOW TO DETERMINE IMPORTANT BUYING NEEDS – A KEY TO SUCCESS
A. Your initial task when first meeting the customer is to differentiate between important
buying needs and needs of lesser or no importance.
B. Determine buyers’ important needs and concentrate on emphasizing product benefits that
will satisfy those needs.
1. Benefits that would satisfy buyers’ unimportant needs should be deemphasized
C. Several ways through which a salesperson can uncover important needs of prospects.
2. Learn from your colleagues who have met with the prospect
VII. YOU CAN CLASSIFY BUYING SITUATIONS
A. Some decisions are routine – Some products are purchased by habit.
B. Some decisions are limited – If customers are not familiar with a particular brand,
they will seek more information.
VIII. CONSUMER BUYING DECISION PROCESS
A. Five basic steps of the buying decision:
1. Need arousal – Help the customer realize his needs.
2. Collection of information – The customer may choose to collect information
from a variety of companies.
3. Information evaluation.
a. The customer matches this information with his needs, attitudes and
beliefs.
b. To provide the buyer with proper information, you need to know:
(1) What product attributes are important in buying decision – Price?
Quality? Service?
(2) What are the most important attributes?
(3) What are the prospect’s attitudes toward:
(a) Your products?
(b) Your competitor’s products?
(4) What level of satisfaction is expected from buying this product?
c. You must be prepared to:
(1) Alter buyer’s beliefs about:
(2) Alter importance of attribute – quality and service are more
important than price.
(3) Bring out unnoticed attributes.
(4) Change person’s search for the “ideal” product into a search for a
more “realistic” product.
4. Purchase decision – A buyer’s decision to make a purchase can be altered by
four basic factors:
a. The attitude of others.
b. The “perceived risk” of buying the product – “Will I receive my money’s
worth?”
c. Uncontrollable factors (insufficient financing, failing of physical exam,
etc.).
d. The salesperson’s action after the decision has been reached.
5. Post purchase.
a. After the purchase, the buyer may experience:
(1) Satisfaction – the difference between what was expected to be
(2) Dissonance – tension over whether the right decision was made in
buying the product.
(a) Show the buyer how to properly use the product.
(b) Be realistic in your claims of the product.
(c) Reinforce the buyer’s decision by reminding him how well
the product performs and fulfills his needs.
(d) Follow-up after the sale to determine if a problem exists.
IX. ORGANIZATIONAL BUYING DECISION PROCESS
A. the underlying decision process differs when it is made by consumers (i.e. individuals)
and firms (i.e. organizations)
B. Organizational buyers tend to focus on very rational goals such as reducing expenses or
increasing sales; and therefore, their decision-making process usually incorporates more
formal rules, guidelines, and steps.
1. In organizational buying situations, a group of employees is usually involved in
the decision-making process (establishing the decision criteria, evaluating
alternatives, etc.).
2. This group, often called the buying center, comprises all of the people
3. An organizational buying situation begins when the firm perceives a business
problem (also called a need).
C. Generally, firms use a five-step process when making a buying decision.
1. Define the problem.
3. Identify alternatives.
4. Evaluate alternatives.
5. Select appropriate solution.
D. Factors influencing organizational buying process
1. Individual influences: people in the buying center and their personality
characteristics, their roles and responsibilities, and their beliefs and attitudes.
2. Social influences: interpersonal relationships and interactions among and
between the members of the buying center.
3. Organizational buying process: organization’s climate, its goals, and its
working environment.
X. TO BUY OR NOT TO BUY – A CHOICE DECISION
A. A salesperson should consider the following questions before developing a sales
presentation:
1. What type of product is desired?
2. What type of buying situation is it?
3. How will the product be used?
4. Who is involved in the buying decision?
5. What practical factors may influence the buyer’s decision?
6. What psychological factors may influence the buyer’s decision?
7. What are the buyer’s important buying needs?
B. People will buy if:
1. They perceive a need or problem.
2. They desire to fulfill a need or solve a problem.
4. They believe they should buy from you.
5. They have the resources and authority to buy.
XI. A FABULOUS APPROACH TO BUYER NEED SATISFACTION
A. Benefit selling – relating a product’s benefits to a customer’s needs.
B. FAB selling technique – (Features, Advantages, and Benefits).
C. The product’s Features – So what? – Features are physical characteristics.
D. The product’s Advantages – Prove it!
2. Advantage – what the product does; how it can be used.
3. How can it be used to the buyer’s benefit?
E. The product’s Benefits – What’s in it for me?
1. Benefit selling – answers the question, “What’s in it for me?”
2. Benefits are favorable results of a particular advantage that can satisfy buyer’s
needs.
F. Order can be important
2. Describe the advantages and features.
XII. TRIAL CLOSE – A GREAT WAY TO UNCOVER NEEDS AND SELL
A. Trial close – checks the pulse or attitude of your prospect toward the sales
presentation. The trial close is one of the best-selling techniques to use in your sales
presentation and should be used at four important times:
1. After making a strong selling point.
3. After answering an objection.
4. Immediately before you move to close the sale.
B. The trial close allows you to determine:
1. Whether the prospect likes your product’s feature, advantage or benefit.
3. Whether any objections remain.
4. Whether the prospect is ready for you to close the sale.
C. The trial close asks for the prospect’s opinion.
D. The trial close does not ask the prospect to make a decision.
E. Examples:
1. “How does that sound to you?”
2. “Is this important to you?”
3. “It appears that you have a preference for this model. Is this what you had in
mind?”
XIII. SELL SEQUENCE
A. One way to incorporate the trial close into your presentation is the use of a SELL
sequence:
2. Explain the advantage.
4. Let customer talk by asking questions in the form of a trial close.
B. Selling involves determining needs and skillfully relating your product’s benefits to
those needs.