In today’s topic, I’m going to talk more about why people don’t always buy the lowest priced proposal. There are many reasons that people won’t purchase based on the lowest price available. That’s why it’s very important to take your consumer’s mindset into consideration when it comes to pricing and marketing your product or service.
The consumer mindset
The theory works this way; get the consumer thinking a certain way about your product or service and you can influence their purchasing behavior.
This works by putting yourself in your customer’s shoes. Think like them, why do they buy? Is it based on price or value?
Buying the least expensive product available makes the most sense, but this isn’t always the case.
Sometimes the perception of value and the price are not the only deciding factors. There are many different things that can influence the buying decision.
Emotions cause people to buy things they really don’t need. They play a big part of the purchasing decision. A lot more than you may think.
In fact, studies have shown that most consumers buy based on emotion and then justify their choice with logic afterward. Which is why many of us spend more than we can afford on the hottest new gadget or the fanciest new car.
Maxwell House versus Folgers, Hellmann’s versus Miracle Whip, McDonalds or Burger King, we all have individual preferences and by buying brand names we ensure we get exactly what we want, when we want it.
This can also be associated with quality, such as favoring a certain tool maker or shoes manufacturer. Think Nike versus Sketchers and you will understand that some people buy brands because of the quality associated with the name and status of owning them.
Keep in mind, that for the consumers it’s not just about the name on the label. It’s a trigger that tells people, they’ll get their money’s worth by doing business with that brand.
Price versus value
An expensive car like a Mercedes-Benz is a prized possession because of the brand “wow” factor. When you own one you know that people see you in a certain light and it makes you feel proud of the purchase and excited to show it off, which again makes it a purchase made based on emotion.
Beliefs and values play a huge roll in the purchasing decision. Many people are willing to pay more for organic items that they feel are healthier or more ethically produced, such as cage-free eggs or grass-fed beef or non-GMO foods.
People buy green cleaners at a higher price than popular commercial brands because of the perception that they are healthier. It makes them feel as if they are doing their part to help the environment and world.
Some people will buy products only with a Made in the USA label. Or they pay more for a hybrid version of the same car to support their personal values.
Understanding the mindset of your consumer to enhance your marketing is an excellent way to increase your sales, so before you start setting prices for your product or service make sure that you take some time to find out what influences their purchasing behaviors.