Three Ways to Manipulate a Buying Decision

by Victor Antonio

I hesitate to use the word manipulate but I think it’s the most appropriate term I can find to describe the following studies on how to get people to buy.  Maybe the word ‘influence’ would be more appropriate.  Why don’t you read on and I’ll let you decide.

M1: Options

Studies have shown that when there are too many options, the majority of buyers will simply choose NOT to choose.  In one study, one group of consumers was offered a choice a 30 flavors of jams and the other was only offered 6 choices.  By a margin of two to one, more people made a buying decision when there were only 6 flavors offered proving again that offering too many options causes the majority of buyers NOT to make a buying decision.  Simply put, too many options cause buyers to not buy.

Few options = high buy rate

Many options = low buy rate

M2: Utility

To take this a step further, studies have been done to see if a buyer’s decision amongst options can be manipulated based on the utility (i.e., the perceived usefulness) of the product.  To test this theory out, buyers were given a variety of choices amongst two categories: printers and mp3 players.  Printers are perceived as having more utility than an mp3 player.  A printer is viewed as a tool to get things done while an mp3 player is perceived as an entertainment item.  In one study, groups of consumers were offered varying options of each to choose from.  A summary of the options and results are as follows:

2 printers and 2 mp3 players = 11% bought printers

2 printers and 6 mp3 players = 32% bought printers

6 printers and 6 mp3 players = 50% bought printers

These results show that as the total number of options increases (e.g., 2 printers – 2 mp3 players = 4 options, 2 printers – 6 mp3 players = 8 options, etc.), consumers were more likely to choose the more utilitarian product.  Why?  When there are too many options, and we have to decide between two alternatives, we will more than likely choose the item that appears to have more ‘utility’.  Larger assortments lead people to select an option that is easier to justify.

We now know to things about how people make decisions (i.e., decision making heuristics):

1)      The higher the number of options offered the less likely people are to decide.

2)      When faced with too many options AND having to make a choice, buyers will choose a product that is perceived to have higher ‘utility’.

Before I go any further, let me stop right here and demonstrate how you can use what you’ve learned up to this point in selling.

Lesson 1: When offering a client a variety of options to choose from you would do well to offer as few as possible if you want the prospect to make a buying decision.  Too many options will paralyze the buyer into not making a buying decision.

Lesson 2: When offering a variety of options between two distinct products, keep in mind that an unsure buyer will migrate to the option that is viewed as safer and having a higher perceived utility.  For example, if you’re selling a car to a prospect and it’s between two different sports car and two distinct SUVs, chick magnet effect notwithstanding, the prospect is likely choose one of the SUVs for its utility.

M3: Justification

In Lesson 2 above, consider this question, “Is there a way to ‘manipulate’ the prospect to forego utility and indulge in a new sports car?”  The answer is yes!  Another study showed that it is possible to counter the utilitarian effect by giving the prospect access to some form of justification for indulging. 

In this particular study, one group was asked to imagine performing 3 hours of community service a week and then offered choices between two types of laptops:

a)      Built for work laptops; loaded with work application programs

b)      Built for fun laptops; loaded with video games

As we’ve learned, when the number of choices available increases, the tendency would be to choose a more utilitarian option (i.e., the work laptop).  But what this study found was quite remarkable.  When people feel they’ve worked hard or feel that they deserve a reward (i.e., license to splurge), they will choose the ‘less utilitarian’ choice.  In the above scenario, those people who donated their personal time on community service were more likely to choose the laptop loaded with games (i.e., the fun laptop).  Having donated their time provided them with a justification to ‘splurge’ and ignore the utility of their decision.

Lesson 3: When selling a high end product, it might be worth mentioning or reminding the prospect why he or she deserves to own the less utilitarian product.  In the car sales example, the salesperson might remind the prospect of how hard the prospect has worked this past year or how much they’ve sacrificed over the years for others and how it’s now time for the prospect to bypass utility and satisfy their own pleasure.  The prospect will use that reminder as a form of justification to buy based on his hedonic, as opposed to utilitarian, needs.   This study also explains why a splurge sale can easily happen when someone has just received some good news (e.g., a raise or promotion).

Summary of how people make decisions (i.e., decision making heuristics):

1)      The higher the number of options offered the less likely people are to decide.

2)      When faced with too many options AND having to make a choice, buyers will choose a product that is perceived to have higher ‘utility’.

3)      Prospect will choose indulgence over utility when they have mental access to some justification (i.e., excuse for rewarding themselves).

Ref: Variety, Vice and Virtue: How Assortment Size Influences Option Choice.  Sela, A., Berger, J., Liu,W.