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
• by Mkt Teachers