Emotional Purchasing vs Rational Purchasing
February 8th, 2010All purchases are emotional but the rationale behind it can dictate which way it swings the most.
In selling to small businesses where the owners are the operators – they tend towards emotional purchasing. Boosting their ego, enhancing their image, doing something cool.
Larger business can be so segmented that it’s completely rational. Is this the guaranteed safe option. Will this keep my butt covered. It’s rational purchasing.
Once you realise the difference, you’ll be vastly better at understanding your market but also how you should sell to them.
Tags: large, medium, purchasing decision, small business
This entry was posted on Monday, February 8th, 2010 at 7:38 pm. 
February 8th, 2010 at 8:02 pm
Interesting, I have different view:
Large corps usually have budget set for a particular purchase, say software or service, they will spend that money anyway, and it’s usually managed by one person, “relationship” and “being like them” play a vital role to bag the elephant.
Small biz owners are more bottom line thinker, as servive and cash is the priority to them.
But for small puchase say “a thousand dollar website”, I think your right, as small biz don’t have that much energy and experty to do all the homework for one product or service out of their area.
Just my thoughts ๐
Ben, hows your new venture been?
February 8th, 2010 at 8:23 pm
I was nodding my head reading Ben’s post, but I also agree with your assessment, especially with respect to large corp budgets Joel. I deal primarily with smaller business owners and I’ve genuinely been astonished by how much their ego drives their purchases though. I’d say in too many instances ego > rationale thinking. And then… maybe I’m in the wrong sector.
February 8th, 2010 at 11:45 pm
Hi Ben,
Very true and valid. Especially “Boosting their ego, enhancing their image, doing something cool.” These are important things for me as a sole operator, I admit it.
In our business (real estate sales) we find most decisions are emotional except when working with investors or with the banks.
Therefore advertising copy for homes will talk about lifestyle, schools and lovely gardens when flat and units dvertising copy will talk about return % and rental demand.
Good post!
March 25th, 2010 at 6:02 pm
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