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:

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