Buying decisions are a lot of times not rational at all. Do we only satisfy our needs?

Main Reaction - The TFL Blog | September 2019

Why do we buy the things we buy?

70% of all purchase decisions in the supermarket are spontaneous. This is due partly to our own impulsiveness but also the result of the work of marketing and sales experts who use their findings to design shops accordingly.

Ever came back home with your shopping bag a lot fuller than planned? I guess we’ve all made this experience, but what is it that defines our buying habits? Classic economic sciences tell us that it is the rational mind. But looking back at yourself coming home with your shopping back full of things you never meant to buy in the first place, we can agree that our buying decisions are a lot of times not rational at all.

Habits, however, make us less prone to make spontaneous buying decisions or fall for special offers. Once we’ve found a kind of cheese we like, we usually stick to it. Also, it has been found out, that even though a big variety of a product catches our attention, the big choice overwhelms us, thus we tend to buy nothing at all.

“People are actually not interested in buying a 4 mm drill. They want a 4 mm hole.”

This contradicts classic economics that tell us that only the usefulness of a product matters. However, it is an assured fact that a lot of other categories contribute to our buying decisions. Most of them are related to our social environment. We buy what our friends like or what reminds us of the cosy hours at our grandparents’ house. Emotional associations are far more important than usefulness and lead to irrational decisions.

This even applies to pricing. We refer to supermarket prices to find out the suitable cost of a product. Retail shops respond to this fact by putting an even more expensive product next to an already expensive product. This raises the average prices we find normal for a product of this kind.

Men are still trapped by the old motto “sex sells”. Products containing erotic images or offered by attractive shop assistants are especially popular. Whereas women prefer beautiful packagings and the possibility to touch and compare products. Men tend to find experience-oriented shops unnerving.

Funnily enough we tend to buy 10% more when the shop is designed counterclockwise. Research hasn’t yet found out why but this is the reason the path to the cash desks almost always is directed anticlockwise.

Realising how irrationally we behave when buying can be quite disillusioning. However, these facts make it quite plain to see that we need to address our customers’ needs and respond to them in an empathic way to convince them that our product best fulfils their needs – rational and emotional. Or as Theoder Levitt, an influential economics professor, once said: “People are actually not interested in buying a 4 mm drill. They want a 4 mm hole.”

Manuela, Switzerland

Blogger from passion
#astrologer #inlovewithleather
Send a message

__________________________________________________

This might be also interesting for you:

Main Reaction - The TFL Blog | December 2019

Something for all seasons

Chilly winds and frozen landscapes are heralding the coming Christmas season bringing with it lots of festivities and cosy get-togethers. Our homes are being transformed with beautiful decorations creating that special atmosphere that makes you somehow wish it could be Christmas every day. Find here inspiration for the ultimate christmas articles made of leather (...)

Main Reaction - The TFL Blog | October 2019

Everywhere to be found

Leather has become an irreplaceable item of our daily lives long ago. Most people associate leather with shoes, fashion, car interiors and motorcycle gangs. However, leather offers so much more and can be found in a lot more places than one may assume at first glance. Find below some examples where leather is found (...)

Main Reaction - The TFL Blog | September 2019

Why do we buy the things we buy?

70% of all purchase decisions in the supermarket are spontaneous. This is due partly to our own impulsiveness but also the result of the work of marketing and sales experts who use their findings to design shops accordingly. (...)

Main Reaction - The TFL Blog | August 2019

Work it harder, make it better, do it faster, makes us stronger

I have been working at TFL since 2013 as a fatliquor chemist in the R&D department. During these six years with TFL, requirements for automotive leather underwent a big change which of course had a big impact on our work and development projects. (...)

Main Reaction - The TFL Blog | July 2019

How far will employees go?

Identification with the company is a very important motivation factor for employees. Also identifying with its purposes, brand and brand values the organisation stands for. Employees need to feel that they’re part of something big and meaningful in order to stay motivated and perform above average. (...)

Main Reaction - The TFL Blog | June 2019

The art of leather

Art has been vital to human beings from the beginning of time. Ever since the first humans have evolved, they started decorating their cave walls with primitive paintings, used plants, flowers and petals to express themselves (...)

Main Reaction - The TFL Blog | June 2019

It's a matter of survival

A couple of years ago the Ellen MacArthur Foundation in partnership with the World Economic Forum informed that by 2050 plastic in the oceans will outweigh fish and that only 14% of plastic packaging, the biggest source of plastic pollution in the oceans, is recycled (...)

Main Reaction - The TFL Blog | May 2019

Stay curious

Still curious after 35 years working with leather? Florian is telling us why he is still fascincated of our industry and how extremely far the technology went in the last ten years (...)

Main Reaction - The TFL Blog | May 2019

"Leather-lunged"? "Hell for leather"?

Leather has played such a significant role for humans and their daily lives for such a long time, that it has even managed to invade our language. Manuela had a look into the dictionary for us (...)

Main Reaction - The TFL Blog | May 2019

How to take care of your leather article

Regular cleaning with appropriate cleaning agents is a good start - but there is so much more you can do! Observe our hints and enjoy your sustainable product for a lifetime (...)