Why do people buy?

Why People Buy

Consumer Behaviour

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:

Why People Buy
Why do people buy?

To Increase

  • Sales.
  • Profit.
  • Satisfaction.
  • Confidence.
  • Convenience.
  • Pleasure.
  • Production.

To Protect

  • Investment
  • Self
  • Employees
  • Property
  • Money
  • Family

To Make

  • Money
  • Satisfied customers
  • Good impressions

To Improve

  • Customer relations
  • Employee relations
  • Image
  • Status
  • Earnings
  • Performance

To Reduce

  • Risk
  • Investment
  • Expenses
  • Competition
  • Worry
  • Trouble

To Save

  • Time
  • Money
  • Energy
  • Space

Published by

Tim Friesner

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.