“Buying Formula” Theory of Selling

In contrast to the two previous theories, the third emphasizes the buyer’s side of the buyer-seller dyad. The buyer’s needs or problems receive major attention, and the salesperson’s role is to help the buyer find solutions. This theory purports to answer the question: What thinking process goes on in the prospect’s mind that causes the decision to buy or not to buy?

The buying formula is schematic representation of a group of responses, arranged in psychological sequence. The buying formula theory emphasizes the prospect’s responses (which, of course, are strongly influenced by internal factors) and deemphasizes the external factors, on the assumption that the salesperson, being naturally conscious of the external factors, will not overlook them. Since the salesperson’s normal inclination is to neglect the internal factors, the formula is a convenient way to help the salesperson remember.

The origin of this theory is obscure, but recognizable versions appear in a number of early books on advertising and selling by authors who had experiential knowledge of salesmanship.13 Several psychologists also advanced explanations similar to the buying formula.14 The name “buying formula” was given to this theory by the late E.K. Strong, Jr., and the following step-by- step explanation is adapted from his teaching and writings.15

Reduced to their simples elements, the mental processes involved in a purchase are need (or problem) solution purchase Because the outcome of a purchase effects the chance that a continuing relationship will develop between the buyer and the seller, and because nearly all sales organizations are interested in continuing relationships, it is necessary to add a fourth element. The four elements then, are

Because the outcome of a purchase effects the chance that a continuing relationship will develop between the buyer and the seller, and because nearly all sales organizations are interested in continuing relationships, it is necessary to add a fourth element. The four elements then, are

Whenever a need is felt, or a problem recognized, the individual is conscious of a deficiency of satisfaction. In the world of selling and buying, the solution will always be a product or service or both, and they will belong to a potential seller.

In purchasing, then, the element “solution” involves two parts: (1) product (and/or service) and (2) trade name (name of manufacturer, company, or sales-person).

In buying anything, the purchaser proceeds mentally from need or problem to product or service, to trade name, to purchase, and, upon using the product or service, he or she experiences has been established, the buying formula is:

To ensure purchase, the product or service and the trade name (that is, the source of supply) must be considered adequate, and the buyer must experience a (pleasant) feeling of anticipated satisfaction when thinking of the product and/or service and the trade name. in many cases, an item viewed as adequate is also liked, and vice versa, but this is not always so. Some products and services that are quite adequate are not liked, and some things are liked and bought that are admittedly not as good as competing items. Similar reasoning applier trade names Some sources of supply are both adequate and liked, others are adequate but not liked, still others are liked but patronized even though they are inadequate compared to competing sources.

With adequately and pleasant feelings included, the buying formula becomes

When a buying habit is being established, the buyer must know why the product or service is an adequate solution to need or problem, and why the trade name is the best one to buy. The buyers also must have a pleasant feeling toward the product or service and the trade name.

Then, whenever the buyer’s buying habit is challenged by a friend’s remark, a competing salesperson’s presentation, or a competitor’s advertisement, the buyer needs reasons to defend the purchase, and, in addition, he or she needs a pleasant feeling toward both the product or service and the trade name. All this is represented by the dashed lines in the formula.

The primary elements in a well-established buying habit are those connected by solid lines, on the central line of the formula. Most purchases are made with scarcely a thought as to why, and with a minimum of feeling. And it should be the constant aim of the salesperson and advertiser to form such direct associations. Reasons (adequacy of solution) and pleasant feelings constitute the elements of defense in the buying habit. As long as they are present, repeat buying occurs.

The answer to each selling problem is implied in the buying formula, and differences among answers are differences in emphasis upon the elements in the formula.

Where the emphasis should be placed depends upon a variety of circumstances. Without going into detail, it may be said that

• If the prospect does not feel a need or recognize a problem that can be satisfied by the product or service, the need or problem should be emphasized.
• If the prospect does not think of the product or service when he or she feels the need or recognizes the problem, the association between need or problem and product or service should be emphasized.
• If the prospect does not think of the trade name when he or she thinks of the product or service, the association between product or service and trade name should be emphasized.
• If need or problem, product or service, and trade name are well associated, emphasis should be put upon facilitating purchase and use.
• If competition is felt, emphasis should be put upon establishing in the prospects’ minds the adequacy of the trade-named product or service, and pleasant feelings toward it.
• If sales to new prospects are desired, every element in the formula should be presented.
• If more sales to old customers are desired, the latter should be reminded. (Developing new uses is comparable to selling to new customers.)