Selling: the science

MMS17, 2023
Hanoi & Ho Chi Minh City, Vietnam (CFVG)
Prof. Dr. Frank Jacob
 Behavioral psychology: the yes-funnel
The mere agreement persuasion mechanism:

“… observers have the lay theory that people tend to ask questions they themselves
would affirmatively reply to and tend to make statements they themselves agree with.
As a result, if one finds oneself agreeing to a given statement or question, this
indicates some similarity between oneself and the other person. This increased
feeling of similarity or connection may lead to an increased compliance with any
request from the person one seemingly agrees with.

(Pandelaere et al. 2010)

Step 1: Ask questions

Step 2: make assumption

Selling - the science & the art 4

“Better think before agreeing twice!” (I)

I had, in fact, no
He thinks, it is, in problem to find
„Was it easy fact, easy to find them.
to find us?“ them. „Yes, it was
easy to find
you.“

We agree, so I
can trust him.

sales client
agent Location: downtown

Selling - the science & the art 5

“Better think before agreeing twice!” (II)

I had, in fact, no
He thinks, it is, in problem to find
„Was it fact, difficult to them.
difficult to find them. „No, it was
find us?“ not difficult
to find you.“

We disagree, so I
cannot trust him.

sales client
agent

Selling - the science & the art 6

Behavioral psychology: mental-states selling
Market response models:
– According to market response model thinking customers go through a sequence of
steps – or mental states – in the buying process. The AIDA (Attention – Interest –
Desire – Action) framework belongs to this category.
– Appropriate sales messages provide a transition from one mental state to the next.

Selling - the science & the art 7

The AIDA framework

effect stage:

Action

Desire

Interest

Attention

Selling - the science & the art 8

Emotion based selling: the stimulus-response approach

Salesperson provides
stimuli: Buyer responses
• statements sought: Process continues
• questions • favorable reactions until the buyer
• actions and eventual decides to buy
• audio/visual aids purchase
• demonstrations

Emotion based selling (stimulus-response selling) builds on the [naïve]

assumption that various stimuli as set by a salesperson can elicit predictable
responses by the customer.
(Ingram et al., 2008)
Based on view of psychology: Bounded rationality
Based on view of ethics: Bounded ethicality

Selling - the science & the art 9

Group work
 Find your group.
 Read the text on the law of SR selling that was assigned to your (new) group.
– group #1: First law
– group #2: Second law
– group #3: Third law
– group #4: Forth law
– group #5: Fifth law
 Prepare a brief presentation of not more than 5 minutes on that text.
– Present the theory
– Present one (!) of the given examples & one new example for a sales context as
identified by your group
 Time for group work: 30 minutes
For this part, customer will lack of rationality

Selling - the science & the art 10

 Selling based on rationality

Ten fundamental laws for SR selling from behavioral psychology

Reciprocity – Self-fulfilling prophecies –

the compulsion to return a favor the power of confidence

Attractiveness through scarcity – The Pygmalion effect –

limited availability the power of friendliness

Consistency – The paradoxical appeal –

the need to be resolute on overcoming mistrust

Activation and cooperation – Emotional dominance –

the building blocks of friendship the power of images

Motivation through labeling – Social proof –

influence from others’ opinion the power of others

Selling - the science & the art 11

 For this part, customer will have rationality and methods

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Selling - the science & the art 12

Cognition based selling: the complex approach

process continues
uncover and confirm present offering to
until the buyer
buyer needs satisfy buyer needs
decides to buy

Cognition based selling (complex selling) is based on the notion that the customer
is buying to satisfy a particular need or set of needs. Thereby, the customer
applies intensive cognitive elaboration and aims at making a rational choice.
Variants of cognition-based selling result from differences in the nature of the
customer problem, the supplier’s approach to solving the problem and the
customer’s mode of outcome evaluation.
(Jacob 2016)
Selling - the science & the art 13
Complex selling: 4 examples

 Imagine the sales process for each company:

– How good (or bad) can the customer identify his
need?
– Which logic will the salesperson apply to create a
solution for the customer problem behind the need?
– Which specific skills will the salesperson need?
– Which industries are typical for this kind of sales
process?

Selling - the science & the art 14

So many screws …

– How good (or bad) can

the customer identify his
need?
– Which logic will the
salesperson apply to
create a solution for the
customer problem
behind the need?
– Which specific skills will
the salesperson need?
– Which industries are
typical for this kind of
sales process?

Selling - the science & the art 15

Toolbox for your ERP system …

– How good (or bad) can

the customer identify his
need?
– Which logic will the
salesperson apply to
create a solution for the
customer problem
behind the need?
– Which specific skills will
the salesperson need?
– Which industries are
typical for this kind of
sales process?

Selling - the science & the art 16

E-mobility for your corporate fleet …

– How good (or bad) can

the customer identify his
need?
– Which logic will the
salesperson apply to
create a solution for the
customer problem
behind the need?
– Which specific skills will
the salesperson need?
– Which industries are
typical for this kind of
sales process?

Selling - the science & the art 17

Check-in to the smarter city …

– How good (or bad) can

the customer identify his
need?
– Which logic will the
salesperson apply to
create a solution for the
customer problem
behind the need?
– Which specific skills will
the salesperson need?
– Which industries are
typical for this kind of
sales process?

Selling - the science & the art 18

Types of complex selling

“algorithmic” “heuristic” “strategic” “constructivist”

(need-satisfaction selling) (problem-solving selling) (consultative selling) (insight selling)
customer ▪ well structured ▪ less structured ▪ ill-structured ▪ non-existent
problem: ▪ clearly specified (RFP) ▪ non-standard ▪ specification partly ▪ emergent needs
requirements open

solution ▪ linear, rational ▪ iterative ▪ co-design ▪ coach & motivate

approach: ▪ e.g. fin the optimal item ▪ e.g. customize product/ ▪ e.g. service/product ▪ e.g. modify customer
from a large product line service/bundles development for customer business model

outcome ▪ quality (= superiority) ▪ satisfaction ▪ judgmental ▪ consensus

evaluation:

relationship: ▪ at arm’s length ▪ interactive ▪ relational ▪ ally

sales rep ▪ strong familiarity with ▪ project management ▪ strong familiarity with the ▪ imagination &
skills: product specifications skills customer, his business, charisma
and product line and his strategy
▪ product consultant ▪ project consultant ▪ industry consultant ▪ change agent

industry ▪ product line selling ▪ systems selling ▪ manufacturer-supplier ▪ selling disruptive

examples: ▪ multi-brand distributor ▪ project business networks innovations

(Jacob 2016)
Selling - the science & the art 19
Taxonomy of approaches to selling

selling approaches

emotion based: cognition based:

SR selling complex selling

behavioral psychology: need- problem- consulta- insight

- “mere agreement” satisfaction solving tive selling
- mental states selling selling selling (construc-
- reciprocity (algorithmic) (heuristic) (strategic) tivist)
- attractiveness through Su tim toi Nha kien tao
scarecity
- …
Selling - the science & the art 20
Which way to go?
“The practice of adaptive selling is defined as the altering of sales behaviors
during a customer interaction or across customer interactions based on perceived
information about the nature of the selling situation ... Salespeople exhibit a high
level of adaptive selling when they use different sales presentations across sales
encounters and when they make adjustments during the encounters. In contrast, a
low level of adaptive selling is indicated by the use of the same sales presentation
in and during all sales encounters.”
Spiro & Weitz 1990

Selling - the science & the art 22

Elaboration likelihood model (Petty & Cacioppo 1983)

Audience Processing Persuasion

factors approach outcome

Central route: Deep processing,

cognitions focused on the Lasting change
quality of the that resists fading
high message and counterattacks
arguments

Motivation/
Message ability to
think

Superficial
low non-lasting change
processing,
with short-term
focused on surface
Peripheral route: effect on behavior
features (cues)
emotions
Selling - the science & the art 23
 Motivation/ability to think
Low

HIgh

expert customer novice customer

HIgh
low

High involvement Low involvement)

Selling - the science & the art 24

Motivation/ability to think

motivation/ability to think
high low

situation ‘list’ ‘leisure’

shopping shopping

product speciality convenience

goods goods

Thuc pham utilitarian hedonic Khoai lac

product product

customer expert novice

customers customers

Selling - the science & the art 25

More to read …
Borg, S.W., & Johnston, W.J. (2013). The IPS-EQ Model: Interpersonal Skills and Emotional
Intelligence in a Sales Process. Journal of Personal Selling & Sales Management, 33(1),
39–52.
Ingram, T.N., LaForge, R.W., Avila, R. A., Schwepker, C.H., & Williams, M.R. (2008).
Professional selling: A trust-based approach (4th ed.). Mason OH: Thomson/South-
Western.
Jacob, F. (2016): Global Sales. Think Global, No. 2, 6-11.
McFarland, R.G., Challagalla, G.N., & Shervani, T.A. (2006): Influence Tactics for Effective
Adaptive Selling. Journal of Marketing, 70(4), 103–117.
Pandelaere, M., Briers, B., Dewitte, S., & Warlop, L. (2010). Better think before agreeing twice:
Mere agreement: A similarity-based persuasion mechanism. International Journal of
Research in Marketing, 27, 133–141.
Petty, R.E., & Brinol, P. (2012). The Elaboration Likelihood Model. In P.A.M. van Lange, A.W.
Kruglanski, & E.T. Higgins (Eds.), Handbook of theory of social psychology, 224–245.
London: Sage Publications.
Spiro, R.L., & Weitz, B.A. (1990). Adaptive Selling: Conceptualization, Measurement, and
Nomological Validity. Journal of Marketing Research, 27(1), 61–69.
Weitz, B.A. (1978): Relationship between salesperson performance and understanding of
customer decision making. Journal of Marketing Research. 15(4), 501–516.

Selling - the science & the art 29