Examining the psychology of a purchase decision

Emotional decisions

Ferrari don't have to try very hard to sell their products – these cars are almost entirely emotional purchases which appeal due to the power of their brand, the technical brilliance of the cars and an intangible value which varies from person to person. If the nature of your product is not particularly aspirational – you can increase this emotional appeal by carefully managing your brand, but remember - when times are tough, it's the emotional products that get hit hardest.

 

In "Mail Order Strategy” (Hoke Communications, 1956), Victor Schwab compiled the following 40 key emotional drivers:

People want to gain:

Health
Popularity
Praise from others
Pride of accomplishment
Self-confidence
Time
Improved appearance
Comfort
Advancement: social-business
Money
Security in old age
Leisure
Increased enjoyment
Personal prestige

They want to save:

Time
Discomfort
Risks
Money
Worry
Embarrassment
Work
Doubts

They want to be:

Good parents
Creative
Efficient
Recognized authorities
Up-to-date
Gregarious
“First” in things
Sociable, hospitable
Proud of their possessions
Influential over others

They want to do:

Express their personalities
Satisfy their curiosity
Appreciate beauty
Win others’ affection
Resist domination by others
Emulate the admirable
Acquire or collect things
Improve themselves generally

Rational decisions

Abraham Maslow published his theory of the hierarchy of needs in 1943, which describes how people's behaviour varies according to their circumstances. Maslow realised that as people's situations improve, their motivational focus and rational requirements shift.

 

The budget supermarket chain Aldi thrived as a result of the 2009 recession. Not because of clever promotion or product development, but because a great many people's circumstances have changed as a result of the external environment. For Aldi, the recession was a massive opportunity, but there is no point in advertising fashion brand clothes to people who don't have any air – they simply won't take any notice. Conversely if you are promoting an emotional product you may get better results if you appeal to that side of their personalities – you rarely see Bentleys being advertised simply as a method of getting from A to B.

 

Major changes in circumstances include:

 

Children - change lifestyle and purchases dramatically – think estate car versus two-seater convertible
Marriage, divorce
Buying or renting a new house of flat
Getting a job, pay rise, or losing a job
Starting school, college, university

How consumers make up their mind to purchase

Now you're customer has made up their mind that they're in the market for, say, a premium watch, there are still plenty of decisions to be made and this is where marketing is especially important. There are plenty of premium watch brands, each of which tell the time equally well – this is where competition is fierce and differentiation is key. At this point, potential customers are most susceptible to marketing messages, the value of which varies according to the source. The combination of rational and emotional factors will be consciously weighed up in the mind of the customer which will lead to the ultimate decision.

Marketing message value

Depending on the source, marketing messages have different value and trust associated with them. For example, an opinion of a close friend is much more likely to affect customer's views than, say, a radio ad.
We've highlighted some examples of messages and their relative value below:

 

High value

Personal experience
Experiential marketing event
Recommendation from a friend or trusted contact
Press review
Internet research - customer reviews etc
Discussion with salesman
Mass media promotional message

Low value

 

This hierarchy of value has lead to the more recent emergency of more personal methods of promotion including live 'experiential' events which are an excellent way of influencing potential customers and building trust.

 

Final words

You don't need to be a psychologist to successfully market a product, but you do need to understand the decision making process and the emotional and rational factors involved. Strike the right balance and you will outperform the competition.