Why People Buy
Marketers spend millions of dollars trying to understand why people buy products and services. Sometimes it seems that there is no reason for a purchase, but in reality there is always a reason. Many factors are involved in a customers’ buying decision, any one of which can become the deciding factor, such as:
- Conspicuous consumption: Lavish spending for the purpose of displaying wealth or social status; preference for buying increases with price.
- Snob effect: Desire to buy something nobody else has; preference for buying increases with rarity or scarcity.
- Bandwagon effect: Desire to buy something everybody else is buying; preference for buying increases with perceived popularity.
- Economic-To enhance their lifestyle or to fulfill two of Maslow’s needs: physiological (food, shelter) and Safety and Security.
- Psychological-This is the study of how people interact with their environment, products are consumed to enhance their well being, for example air fresheners, furniture and convection ovens.
- Sociological-The study of the thoughts, feelings, and behaviors of group interaction, especially in a social setting. People want to feel accepted and loved by their peers and they need to consume products that will appeal to their chosen groups. For example a consumer wants to join a kayaking team would have to purchase the proper gear, clothing and maybe even music genre in order to fit in with the group.
- Practical-Consumers purchase products because they need them to survive, such as shoes and medicine.
- Impractical-is the opposite of practical, purchasing products that are not necessary.
- Rational-Purchases are made with logical, thought out reasoning.
- Irrational-products are purchased for foolish or absurd reasons.
- Factual-Purchasing products based on researched reports.
- Emotional-purchasing products based on feelings
- Buy to satisfy a need (for a reason).
- Buy to satisfy a want (desire).
Consumers Also Buy:
- Satisfied customers
- Good impressions
- Customer relations
- Employee relations