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Buying Formula Theory

The "Buying Formula" theory of selling posits that a buyer's decision to purchase is driven by a need or problem, and the search for a solution. The theory outlines that a buyer will first recognize a deficiency, then develop interest in a solution in the form of a product/service and brand that adequately satisfies their need. This ensures a purchase. The "Behaviour Equation Theory" is a more sophisticated model that views buying as a learning process. It incorporates four elements - drives that motivate a buyer, cues that trigger their response, the response itself, and reinforcement of responses. The theory expresses this as an equation, where the likelihood of a purchase response is determined by the interplay of a buyer's internal response

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5K views3 pages

Buying Formula Theory

The "Buying Formula" theory of selling posits that a buyer's decision to purchase is driven by a need or problem, and the search for a solution. The theory outlines that a buyer will first recognize a deficiency, then develop interest in a solution in the form of a product/service and brand that adequately satisfies their need. This ensures a purchase. The "Behaviour Equation Theory" is a more sophisticated model that views buying as a learning process. It incorporates four elements - drives that motivate a buyer, cues that trigger their response, the response itself, and reinforcement of responses. The theory expresses this as an equation, where the likelihood of a purchase response is determined by the interplay of a buyer's internal response

Uploaded by

rajendrakumar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Buying Formula Theory of Selling:

The buyers needs or problems receive major attention, and the salespersons role is to help the buyer to find solutions. This theory
purports to answer the question: What thinking process goes on in the prospectss mind that causes the decision to buy or not to
buy? The name buying formula was given to this theory by strong.
The theory is based on the fact that there is a need or a problem for which a solution must be found which would lead to
purchase decision, as shown below:

Whenever an individual feels a need, he is said to be conscious of a deficiency of satisfaction. The solution will always be a product
or service or both and they may belong to a producer or seller. The buyer develops interest in buying a solution.
In purchasing, the solution involves two parts:
1. Product or service or both,
2. The brand name, manufacturer or the salesperson of the particular brand name:

The product or service (Brand name) must be considered adequate to satisfy the need and the buyer must experience a pleasant
feeling or anticipated satisfaction. This ensure the purchase.

Behaviour Equation Theory of Selling:


This theory is a sophisticated version of the right set of circumstances and this theory was proposed by Howard, using a stimulus
response model and using large number of findings from behavioural research. This theory explains buying behaviour in terms of
purchasing decision process, viewed as a phase of the learning process, four essential elements of learning processes included in
the stimulus response model are drive, cues, response and reinforcement, which are given below, in brief:
1. Drive is a strong internal stimuli that impel buyers response. Innate drives stem from psychological needs and learned drives
such as striving for status or social approval.

2. Cues are weak stimuli that determine when the buyer will respond. Triggering cues activate the decision process whereas new
triggering cues influence the decision process.
3. Response is what the buyer does.
4. A reinforcement is any event that strengthens the buyers tendency to make a particular response.
Howard believed that selling effort and buying action variables are multiplicative rather than additive.
Therefore, Howard incorporated these four elements into a behavioural equation that is:
B=PDKV
P = Response or internal response tendency, i.e. the act of purchasing a brand or a particular supplier.
D = Present drive or motivation level
K = Incentive potential that is, the value of product or brand or its perceived potential value to the buyer.
V = Intensity of all cues: triggering, product or informational.

http://www.yourarticlelibrary.com/marketing/personal-selling/4-theories-of-personalselling-explained/50981/

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