Sales secrets revealed: Why location can make or break a deal

Salespersons put hours into developing persuasive pitches, yet recent research shows that deals are lost or made prior to speaking the initial word. The physical space where a salesperson approaches a consumer can play a powerful role in whether or not the encounter continues or gets terminated.

Researchers found that people respond quite differently depending on whether a sales encounter takes place privately or publicly.

Experiments demonstrate that sales presentations in private spaces—homes, lounges, or members-only rooms, for example—generate more resistance. People, on the other hand, are more open in public spaces like stores, sidewalks, or crowded airport concourses.

Assistant marketing professors Minjoo Kim and Bitty Balducci of Washington State University's Carson College of Business conducted four experiments to try out location effects. Their study showed the same pattern every time: prospects resist more in private spaces because they feel their freedom of choice is under attack. This psychological pushback is called psychological reactance, and it has a tendency to undermine even the most persuasive salesperson.

Psychological reactance is a sort of mental backlash," Kim said. "In more personal settings, customers have a stronger urge to protect that freedom, and that can make them less likely to respond to sales messages.".

The experiments duplicated this impact in situations. Participants at home were less likely to watch a product demonstration than those approached in a store.

One experiment also compared reactions in a private airport lounge and a public terminal. Once again, lounge participants were more resistant. Privacy seemed to strengthen the need to defend private space, making it more difficult for salespeople.

Reactance theory in psychology explains why private environments bring about stronger resistance. When people feel that their freedom of choice is compromised, they will push back by rejecting what is being offered. It is usually an unconscious reaction and can manifest as a courteous rejection, closed-off body language, or a quick excuse to leave.

Researchers continue that this instinct transfers beyond sales. It resurfaces when people defy advice or reject orders they see as controlling. In sales, the impact grows stronger because customers view private spaces as personal territory.

The study uncovered an encouraging revelation: minor adjustments in salesperson behavior can dismantle reactance. One of the methods involves inserting physical distance in interactions.

Subtle cues, like how open a space is or how close the salesperson stands, can change how customers respond," Kim said. "If salespeople want to reduce resistance, especially in more personal settings, it is helpful to give customers space and emphasize their freedom to choose.".

Stepping back, standing open, or giving more space communicates respect for independence. These actions reduce the sense of invasion and enable prospects to feel more decisionally in control.

To salespeople and managers, the message is clear: where and how a pitch occurs is just as vital as the pitch. In recognizing the influence of setting, teams can train salespeople not only in what to say but also in how to approach.

Balducci and Kim's research shows that teaching respect for physical space can result in easier, more fruitful sales conversations. It can be as valuable as traditional teaching of persuasion or closing skills.

"Salespeople spend so much time learning what to say but paying attention to where and how the conversation occurs can go a long way toward building trust and improving results," Kim emphasized.

The study reveals why salespeople struggle in one-on-one situations. Most companies train teams to handle objections or use shiny scripts, but nobody practices context. Yet the environment often tilts the scales between rejection and engagement.

A home visit could prompt more defensive reactions than a retail encounter. A casual discussion in a crowded coffee shop may appear less intrusive than an approach in a deserted waiting room. Being aware of these differences could transform strategies across industries, ranging from insurance and real estate to tech and retail.

The research speaks of the need for smarter selling strategies built on the basis of context. The salespeople can start by evaluating the privacy of a setting before making contact. They are meant to offer more personal space in private settings and engage in nonverbal communication that shows openness and choice.

By respecting autonomy and adapting style, salespeople can reduce resistance and build stronger relationships. The ethical is straightforward: success is not only in words but in where and how they are spoken. So go ahead and stick around.

Research findings are available online in the journal Journal of Personal Selling & Sales Management.

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