Question

why and when consumers make purchase decisions, how does the rational self, emotional self, instinctual self impact purchasing decisions? Furthermore, how can marketing managers utilize the findings of research related to neuroscience and purchasing behaviors to develop and implement marketing initiatives?

Answer 1

Consumers make purchasing decisions because of following possible reasons:

a) Requirement of the product for self: This may arise due to need to buy, and may range from daily neccessities to luxurious products - one's need may be a luxury to another, hence this cannot be generalised for any particular product.

b) Peer pressure: Buying a bicycle just because a friend owns one, may be a reason, but not really a need in the presence of other modes of transport available. Similarly, trying to afford and buying an expensive dress because their neighbour looks wonderful in one similar to it, may be another example. However, it forms quite a good proportion of buyers.

c) Futuristic view: Such purchases may be a good investment now, because of the view that prices may rise later, and the product may be out of market due to lack of demand and supply proportion. Such purchases may be found for designer pieces or market investments.

Decisions of purchasing also depend upon the person's understanding about his situation and his priorities. He may be convinced to purchase a product, but the item may fall down lower in his priority list, which may refrain him from going for this purchase.

In all the cases, the person's rational self may pose it as a requirement, depending on the severity of it. In option 2 and 3, the emotional self plays an important role, as the requirement may not be of immediate purpose, or in extreme cases may not be required at all, however, the emotional self pressurises the person to go ahead with this purchase.

For marketing managers, the key to market a product lies in understanding the customer, his requirement and his mindset. It may be a skill to market a completely bizarre product to someone's requirement, but if the marketeer can do it, it suggests that he understands the psychology of this customer.

Marketing techniques have the first fundamental strategy to read the mind of their customer, try to make the customer understand value of the product to be sold, and then try to make him realise it fits well within his requirement, or to make him feel that he is making a good investment with just a little over his budget. The marketing manager should try to build the need of his product to the customer and then sell the same. For example, selling a bike to a lady - it may not be her priority, but trying to make her realise that she can reach any place faster with the help of that bike, or she would not have to wait for a public transport if she does not have any other vehicle can be a few pressing points on her thinking process. Another way she can be guided is that she can take the bike to places where any four wheeler cannot easily be driven. In these ways marketing managers can try to understand her thinking and then suggest her the best option.