The Psychology of Selling: Why People Buy

3-1
• Learning Objectives

3-1: Explain differences between consumer and organizational

buying contexts. 
3-2: Explain why people buy benefits rather than features or
advantages. 
3-3: Enumerate techniques for determining a customer’s needs. 
3-4: List factors that influence the customer’s buying decision. 
3-5: Show why buying is a choice decision. 
3-6: Explain the differences between a feature, an advantage, and a
benefit. 
3-7: Be able to construct a SELL Sequence. 
3-8: Know when and how to use a trial close. 
3-2
• Why Understanding Buying Processes
Is Important
• Customers want to trust you!
– They depend upon salesperson to tell the truth.

• Salespeople are successful in the long term by:

– Being honest
– Building relationships

• Use your communication and selling skills to unselfishly help a

person make the correct buying decision

3-3
• Why People Buy?
The Black Box Approach
• We cannot see into the buyer’s mind
• The internal decision process is referred to as the black box
– Person internalizes/considers information and makes a buying decision

• Stimulus-response model of buyer behavior

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This model assumes that prospects respond in some predictable manner to the sales presentation.
Unfortunately, it does not tell us why they buy or do not buy the product. This information is concealed in the black box. 3-4
• Buying
Process • People buy for practical (rational)
and psychological (emotional)
What’s Known reasons
About Mental
• Some of a person’s thoughts can be
Processes That
determined
Yield Buying
• Buyers consider variety of factors in
Responses
making purchase decisions

3-5

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• Organizational versus Consumer Buying
Consumer buying: Organizational buying:
• Purchasing activities of individuals • Activities of organizational members
and households for their personal as they define a buying situation and
use, consumption or to meet the identify, evaluate, and choose among
collective needs of the household alternative brands and suppliers
unit such as a family or individual
• Often called B2B or  business-to-
business selling
• Often called B2C or business-to-
consumer selling
• Selling Under Armour® apparel to a
sporting goods distributor;
• Selling financial services (life healthcare technology to a hospital
insurance, home security systems) system

• Limited number of decision makers • Many varied decision makers

involved involved 
3-6
• Compare The Differences:
Selling To Consumers vs. Businesses
Buying Consumer Context Organizational Context
Characteristics
Motive Purposes of the consumer/household Purposes of the organization

People Typically an individual Group of people (e.g. buying center)

Expertise Decision-maker(s) not expected to Decision-maker(s) expected to

possess expertise possess expertise
Process Process often impacted by individual’s Rationality often recommended as a
emotions and formal guidelines not goal and decision making process
necessarily followed may involve formal rules and
guidelines
Complexity Decision tasks more routine in nature Decision tasks often complex and
and relatively less complex significant
Time Relatively quick decision making Time-consuming process

3-7
• You Can Classify Buying Situations
• Some decisions are routine
• Some decisions are limited
• Some decisions are extensive

3-8
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• The Three Classes of Buying Situations

Low Involvement Moderate Involvement High Involvement

Routine Decision Making Limited Decision Making Extensive Decision Making

• Routine decision making: Products are purchased repeatedly. People give little
thought or time to the routine purchase.

• Limited decision making: When buyers are unfamiliar with a particular product
brand, they seek more information when making a purchase decision.

• Extensive decision making: Buyers believe much more is at stake relative to other
buying decisions.

3-9
• View Buyers as Decision Makers
• Five basic steps in the
buying decision
1. Need arousal
2. Collection of information
3. Information evaluation
4. Purchase decision
5. Postpurchase:
• Satisfaction
• Dissonance

3-10
• Consumer Buying Decision Process

• Consumer buying decision involves five basic steps

– Consumers recognize a need
– Collect information through internal and external sources
– Evaluate that information
– Decide to buy
– After the purchase, determine whether they are satisfied.

• In addition, other forces influence a consumer’s buying

behavior (i.e. psychological, personal, social factors)

3-12
• Consumer Buying Decision Process

• Consumer buying decision involves five basic steps

– Consumers recognize a need
– Collect information through internal and external sources
– Evaluate that information
– Decide to buy
– After the purchase, determine whether they are satisfied.
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3-14
• Consumer Buying Decision Process

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• Organizational Buying Process

• More formal rules, guidelines, and steps.

• Describes problem-solving procedure firm uses to meet its
goals and objectives, as it relates to making purchases
• Buying process involves many individuals, multiple goals, and
potentially conflicting decision criteria

3-15
• Organizational Buying Process

• Firms use a five-step process when making a buying decision.

–      1. Define the problem. 
–      2. Establish the decision criteria. 
–      3. Identify alternatives. 
–      4. Evaluate alternatives. 
–      5. Select appropriate solution. 

3-15
• Organizational Buying Process
• Describes problem-solving
procedure firm uses to meet
its goals and objectives, as it
relates to making purchases

• Firms use a five-step process

when making a buying
decision.
     1. Define the problem. 
     2. Establish the decision
criteria. 
     3. Identify alternatives. 
     4. Evaluate alternatives. 
     5. Select appropriate solution. 
3-16
• Organizational Buying May Require
Salesperson to Ask Distinct Questions
• What are the steps in the buying
process for your firm (or for this
project)?

• Who are the members of the

buying team? What are their
specific roles and
responsibilities?

• What current challenges are your

firm experiencing in this area? 

• What are the goals for this

project (or product or solution)?
3-17
• Organizational Buying May Require
Salesperson to Ask Distinct Questions (cont.)
• Can you describe for me your timeline
for this project (or decision)?

• What budgets or other resources

have been identified for this project?

• What have previous partners (or

vendors or other companies)
accomplished for you that made them
a valued partner?

• What are your expectations of the

company that you chose to work with
on this project? 3-18
• Factors Influencing
Organizational Buying Process
• Organizational buying process impacted by
factors:
• Individual influences: People in buying center
and their personality characteristics, their roles
and responsibilities, and their beliefs and
attitudes.

• Social influences: Interpersonal relationships

and interactions among and between the
members of the buying center

• Organization’s climate, its goals, and its working

environment: Firm’s culture, its expectations of
its employees, firm’s financial objectives
3-19
• How Do Salespeople Communicate Their
Product’s Benefits To Customers?
• Feature
• Advantage
• Benefit

• Stressing benefits is a very powerful selling technique

• FAB selling technique helps emphasize benefit

3-20
• Use Your FABs To Create Value For Buyer

• Feature – Physical Characteristic

– Buyer thinks “So What?”

• Advantage – Performance Characteristic

– Buyer thinks “Prove It!”

• Benefit – Favorable result from advantage

– Benefits are what people buy!

• You can have a benefit of a benefit or a FABB

3-21
• The Product’s Features: So What?

• Feature – a physical characteristic

• Many salespeople emphasize features
• Examples:
– Size
– Color
– Price
– Shape

3-22
• The Product’s Advantages: Prove It!

• Advantage - a performance characteristic

• The chances of making a sale are increased by describing the
product’s advantages
– How a product can be used
– How a product will help the buyer
– How does the feature enable the benefit
– Examples:
• Fastest-selling
• Store more information
• Copy on both sides of the paper

3-23
• The Product’s Benefits: What’s in it for Me?

• Benefit – a result of advantage

• People are interested in what the product will do for them
• Benefits can be both practical and psychological
• Benefits should be specific statements, not generalizations
• Emphasizing benefits increases sales

3-24
• People Buy Benefit(s):
The Salesperson Must Stress Benefits
• High performing salespeople stress benefits
• They know this increases their chances of making the sale and
helping someone

3-25
• Why Does Someone Buy These Items?

• Diamond ring
• Camera film
• STP motor oil
• Baseball tickets

• What truly is the benefit that the buyer is attaining?

3-26
• Use the FAB Sequence
• The standardized FAB Sequence can be used as follows:
– The…(feature)…means you…(advantage)…with the real benefit to you
being…(benefit)….
– Or The...(feature)....enables or allows your firm to...(advantage) which
means the value to you is...(benefits).
– Or The...(feature)....creates/generates _____for your firm...(advantage)
thereby creating value to your firm by _____...(benefits).

• Note how a benefit is emphasized

• Pick a product. Insert a FAB of the product into the above sequence
– Put in your own words
– Try it. It works!
3-27
• Let’s Review FABs

• “For long life, these LED light bulbs

– (feature)

• provide an opportunity to reduce your maintenance costs

– (advantage),

• In fact, you can expect a 10% savings this year.  

– (benefit)

3-28
• Let’s Review FABs
Which Of The Following is a Feature, Advantage, or Benefit?

• “Double layers of • “Made of pure vinyl”

protective coating” – Feature, advantage or
– Feature, advantage or benefit?
benefit?
• “Generates awareness” • “Save you 20% more
– Feature, advantage or electricity per hour”
benefit?
– Feature, advantage or
benefit?

3-29
• FAB Example

• Salesperson selling LED lights and sensors:

– “I would like to introduce you to our new LED sensors. The sensors are
fully customizable and detect each unique individual in your lab areas
(feature). The sensors provide you with an ability to customize your
lighting requirements based on the needs of the user.

– This reduces the need for your employees to adjust the lighting
(advantage).

– Hence, your firm will increase its efficiency by reducing the time and
labor needed to operate the lighting across your 500 lab settings
(benefit).

3-30
• Match Buyer’s Needs to Product’s Benefits
and Emphasize Them in the Sales Presentation
• While the salesperson has broad range of understanding and
product benefits…
– Goal is to focus on the benefits that are most relevant to the buyer

• Your buyer is the target market

– Their perception of important needs should be targeted

3-31
• The Trial Close
A Great Way to Uncover Needs and Sell
• The trial close asks for an opinion, not a decision to buy
• It gives feedback
• A great communication technique in the sales presentation
• Often, trial closes are open-ended questions

3-32
• The Trial Close Helps You to Determine:
• Whether prospect likes your
product’s features,
advantages, or benefits
• Whether you have
successfully answered any
objections
• Whether any objections
remain
• Whether the prospect is
ready for you to close the
sale

3-33
• In These Examples of Trial Closes, Notice They
Do NOT Ask Someone to Buy Directly
• “What are your thoughts on this?”
• “Would you be willing to share your thoughts on this?”
• “How important would you say something like this is to your
business ?”
• “I notice your smile. What do you think about…?”

3-34
• Let’s Review!
When Are the Times to Use a Trial Close?

1. After making strong selling point in presentation (FABs)

2. After presentation but before the close
3. After answering an objection
4. Immediately before you move to close the sale

3-35
• The SELL Sequence:
Use It Throughout Your Presentation
S E L L
Show Feature Explain Lead into Let Customer
Advantage Benefit Talk

• The SELL Sequence is similar to the FAB

– However it also includes the trial close after the benefit statement
– Show the Feature: Physical Characteristic
– Explain the Advantage: Performance Characteristic
– Lead into the Benefit: Result of Advantage
– Let customer talk: Trial Close (Question)
3-36
• Identify The Elements of SELL Sequence
• Industrial Salesperson to • This equipment is made of
Industrial Purchasing stainless steel
Professional – (?)

• which means it won’t rust

– (?)

• The real benefit is that it reduces

your replacement costs by
approximately 12% each year
– (?)

• What are your thoughts

– (?)
3-37
• SELL Sequence Example
• Salesperson selling LED lights and sensors:
– “I would like to introduce you to our new LED sensors. The sensors are
fully customizable and detect each unique individual in your lab areas
(feature). The sensors provide you with an ability to customize your
lighting requirements based on the needs of the user.

– This reduces the need for your employees to adjust the lighting
(advantage).

– Hence, your firm will increase its efficiency by reducing the time and labor
needed to operate the lighting across your 500 lab settings (benefit).

– How do you think your employees would feel about using the sensors
(trial close)?”
3-38
• Examples of Features, Advantages, Benefits, and
Trial Closes that Form the SELL Sequence
Feature Advantage Benefit Trial Close
Product made of Will not rust or deteriorate Reduces your How does that
stainless thereby allowing a greater replacement sound to
steel lifespan cost you?
and total cost of
ownership

Supermarket computer Can store more information Provides greater How does this
system and retrieve it rapidly by accuracy, solution
with the IBM 3651 supervising up to 24 grocery register align with your
Store Controller checkout scanners and balancing, store objectives
terminals ordering,
and look up prices and inventory
on up to 22,000 items management

Five percent interest on Earns interest that would not The extra money is Would you like to
money in bank checking normally be received equivalent to one extra earn
NOW account bag of groceries each extra money on
month your
savings?

3-39
 Can You Answer?
1. What is a need and how does it differ from a want? Why is it
important for a salesperson to understand the buyer’s needs?

2. What are common economic needs and what are common

psychological needs?  Why might a buyer possess multiple
economic and psychological needs?

3. What are the three categories (i.e. classifications) of buying

situations? In what major ways are they different from one
another?

3-40
 Can You Answer?
4. What are the five steps in the buying process? How could a
salesperson assist the buyer in each of these steps?

5. Salespeople often ask themselves, “How can I convince a person to

choose my product?” What are the five elements that need to be
present in order for a customer to purchase a solution?

6. What are the elements of a FAB and SELL Sequence? Why are they
valuable?

7. What is the value of a trial close?

3-41
• Stimulus-response model of buyer behavior
Alt-Description
This graphic is a sequence of three boxes with arrows in between
each box. Each box represents a stage of the stimulus response
model of buyer behavior. Above each box is a description of the
model as applied to a sales scenario.

The first stage is the stimulus. Within the sales context this
would be the sales presentation. The second box is the black
box. Within the sales context this would be the buyer’s hidden
mental processes. The third box is the response. This would be
the sale or no sale choice by the buyer.

Return to the image on the slide

• Consumer Buying Decision Process
Alt Description
This graphic reflects the consumer decision process. It is a
sequence comprised of five steps. The steps are displayed as
boxes with arrows between the box, intended to demonstrate
the sequence in the process. The first step is need arousal. The
second step is collection of information, The third step is
information evaluation. The fourth step is purchase decision.
The firth step is postpurchase behavior

Return to the image on the slide

• Three Influences On Consumer Buying Decision Process
Alt Description

This graphic reflects the three major influences on the consumer

decision process. The three categories of influences are displayed as
three boxes. The boxes have arrows pointing downward to the entire
consumer decision process. The consumer decision process is a
sequence comprised of five steps. The first category of influences is
personal influences. This includes income, age, gender, situation. The
second category of influences is psychological influences. It includes
past experiences, personality, attitudes and beliefs, and perception. The
third category is social influences. This includes culture, social class,
family and friends. The consumer buying decision process steps are
displayed as boxes with arrows between the box, intended to
demonstrate the sequence in the process. The first step is need arousal.
The second step is collection of information, The third step is
information evaluation. The fourth step is purchase decision. The fifth
step is postpurchase behavior Return to the image on the slide