SEL - Customer Buying Decisions [LESSON]

Customer Buying Decisions

Types of Buying Decisions

Different types of buying decisions can include logical, impulsive, and emotional motivations.
Buying decisions are based on buyer behavior. Consumer behavior and business behavior can differ because their buying processes are different. Consumers will often buy on emotion or impulse whereas businesses will buy based on need.

Logical – logical buying behavior is using a conscious, factual reason for making a purchase. For example, purchasing a product based on the following: product dependability, time or monetary savings, convenience, comfort. Emotional – emotional buying behavior is using feelings to make a purchase. For example, purchasing a product based on the following: social approval, recognition, power, love, prestige.

Because consumers often buy on emotion, ads can affect the buying decision. Consumer products are often advertised on television in a way that tries to create an emotional tie with the buyer. An example of this is car ads that stir emotions of envy for racing the streets like a race car driver.

Emotional tactics don't work well with businesses. A company needs to know about the features of a product and how it will help fill a specific need. Businesses are also worried about price and return on investment.

Factors affecting decisions

There are a variety of different decisions a consumer needs to make every day anything from routine decision at the grocery store, “what kind of soup should I get for lunch tomorrow” to an extensive decision like buying a car or home. The factors that determine what kind of decisions are below: • Amount of pervious experience with the product • How often the product is purchased • Amount of information necessary to make a wise buying decision • Importance of purchase to the customer It is important for a salesperson to know the type of decision a customer is trying to make to they can be prepared to answer questions or just step back and ring the customer up. Type of Decision Extensive – used where there has ben little or no previous experience with an item because it is infrequently purchased. Example – cars, homes, financial investments Limited – used when a person buys goods and services that he has purchased before but not on a regular basis. Example appliances. Routine – Used when a person needs little information about a product because of the high degree of prior experience with it. Example – food, clothing.

 

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