The Hidden Forces That Shape Consumer Purchasing Decisions
Kirjoittanut: Khaldun Shahran - tiimistä Crevio.
Influence: The Psychology of Persuasion
The Paradox of Choice: Why More Is Less
PREDICTABLY IRRATIONAL : THE HIDDEN FORCES THAT SHAPE OUR DECISIONS
Consumer purchasing behavior is influenced by a lot of internal and external factors and psychological biases. It is a complex and multifaceted process. Visible factors such as price, product, quality, place, and advertising play an important role, but there are also numerous hidden factors that also profoundly influence consumer behavior. Understanding these factors is vital for companies to effectively connect with the target market audiences. With a better understanding of target markets and factors that influence the market, you can create marketing strategies and ultimately drive sales.
In today’s competitive business landscape where consumers have a lot of options, it is essential to walk the extra mile to explore the option to go into deeper forces to drive consumer behavior. By understanding these hidden forces, businesses can gain valuable insights into underlying psychological, social, and emotional factors that shape consumers’ purchasing decisions. For example, The Fear of missing out (FOMO) is a powerful emotional force that drives consumer behavior. There are other such as offers, exclusivity in products, and scarcity in the market to influence impulsive purchasing decisions.
I will try to address some of the factors that influence consumer purchasing decisions:
Perception of a product greatly influences their purchasing decisions. The way businesses present, package and position their product can influence their purchasing decisions. Marketers leverage these psychological factors to enhance the perceived value of their products. The motivation and needs of consumers are very powerful forces that drive purchasing decisions. Maslow’s hierarchy of needs highlights the different levels of needs consumers strive to fulfill. From basic physiological needs to higher level needs such as self-esteem and self-actualization.
Marketers need to tap into these motivations by positioning products as solutions to specific needs and desires to effectively appeal to the consumer’s aspirations and desires. Consumers are also influenced by various cognitive biases that impact their decision-making. For example when looking to buy something we often go look on the internet for information about products to confirm their existing beliefs or choices, which influences our purchasing decisions. Understanding their biases allows them to shape marketing efforts such as messaging, pricing, and product information to influence consumer choices. (Ariely, 2008)
People look to others for guidance when making decisions. Social proof is the tendency to confirm the actions or opinions of others greatly influencing consumer purchasing decisions. Testimonials, positive reviews, and endorsements from influential individuals or peers can significantly impact a consumer’s perception and influence their trust level and confidence in a product or brand.
Consumers often associate themselves with certain groups such as family, friends, or online communities, whose behavior and opinions influence the target audience market. Marketers leverage these hidden influences by targeting these reference groups by employing the Word of Mouth (WOM) strategy. Word of Mouth is a very popular strategy in marketing strategy where marketer focuses on becoming the first mover in a market to resonate their brand as the best-valued brand for their consumer to create a sense of community and trust around their products. (Cialdini, 2007)
Emotion plays an important role in consumer decision-making. Brands that successfully can evoke positive emotions can craft strong emotional connections with their consumers. This builds a lot of brand loyalty and repeat purchases. Storytelling, visuals, memorable experiences tap into consumers’ emotions and consumer relates more with the brand and thus creating a lasting impact on their purchasing decisions. (Schwartz, 2016)
Fear of Missing Out(FOMO)) is a powerful emotion that creates a buzz in the market to get something that everyone is buying and the consumer thinks that they have to get it too. Limited-time offers, exclusive products, and scarcity in the market create a sense of urgency and promote impulsive purchasing decisions to avoid missing out on an opportunity or experience. Brands often offer different marketing strategies where they give out a certain offer that instantly creates a buzz around their consumer and consumers are suddenly trying to get the experience everyone else is also getting.
Consumer purchasing decisions are influenced by a lot of hidden forces. Understanding these forces and their impact on consumer behavior is very essential for businesses to develop effective marketing strategies and connect with their target audience. Recognizing these factors and evolving marketing strategies with them is crucial thing for the brand. The goal for businesses is to drive sales and increase brand loyalty to create repeat purchases of their brand products.
Ariely, D. (2008). Predictably Irrational: The Hidden Forces That Shape Our Decisions. HarperCollins.
Cialdini, R. B. (2007). Influence: The Psychology of Persuasion. HarperCollins.
Schwartz, B. (2016). The Paradox of Choice: Why More Is Less, Revised Edition. HarperCollins.