Why do people buy what they buy?

There is a variety of reasons why people buy what they buy. I tried to break it down to understand who buys what when and why. For what reasons do people buy products? We are going to look into the five major categories that influences the consumer to spend their money and try to understand consumer behavior.

Economic Needs

While some consumers look for the lowest price available, some are willing to pay more for convenience. Some driving factors of economic needs are:

• Economy of purchase or use: instead of eating out every night, making dinner at home. Such as getting a less expensive frozen pizza rather than ordering from the local pizzeria.
• Efficiency in operation or use: a more effective tool to make the process of something faster and easier.
• Dependability in use: picking a car that will not have high repairs throughout the years.
• Improvement of earning: picking a credit card that has better rewards that fit your needs.
• Convenience: getting breakfast at a drive-through instead of making it on the way to work or getting pick up groceries.

Now more than ever we have seen a more efficient way to get the daily task done without the hassle. If you do not adapt, others will and you will be left in the dust.

Watch the video below for a very detailed explanation of the factors that effect consumer behavior.

https://www.youtube.com/watch?v=UL6imegssbQ

Psychological Variables

The psychological variables are broken down to needs and wants. Often ask yourself, do I need this product or do I want it? Needs are the basic the basic forces that motivate someone to do something while needs are basic wants. Everyone needs water, but do you need the more expensive flavored, vitamin enhanced in a cool bottle water? Those are the questions you need to ask yourself.

Social Influences

Opinion leaders are people who influence others. In todays day in age, social media drives everything. The target population in this area is more often than not teenagers. Their social status means a lot to them and they want to be like the celebrities they see on social media. When a new trend or brand comes out you see a lot of kids willing to pay extra money to have a certain brand of clothing or certain hairstyle. At the end of the day we all just want to fit in and the best way to do that is to be like others.

Culture and Ethnicity

Depending on where you are from and what you grew up on, will shape a lot of your spending habits. When you live in an area that is a melting pot of different ethnicities you will notice that the grocery store has so many different sections for everyone who lives there (Hispanic, Asian etc..). When you are selling a product make sure to know who your target audience is and where they shop and live.

Purchase Situation

Purchase situation takes into effect the purpose, time available and location where the purchase is made. If you are in a rush to get somewhere and need to fill up your tank, you will most likely not drive around the town to find the cheapest gas prices. This can also relate to your geological location, most likely you will not find a lot of ski or snowboard shops in sunny south Florida..

Conclusion

These five factors drive consumers to make decisions on what to by and when. If you have no reason to buy a product then you will not buy it.