5 Driving Forces Behind Why People Spend Money as Consumers

customers finances sales Jan 06, 2022
5 Driving Forces Behind Why People Spend Money as Consumers

Sales require multifaceted thinking.  On one level, it’s necessary to understand and articulate the benefits of a given product.  But on another level, it’s also important to understand customer behavior.  Why is it that people desire goods and services?  When are customers most likely to engage in transactions?  What features and amenities are customers inclined to find appealing?  All of these are questions that a skilled salesperson should answer intelligently.

 

Customers Make Purchases for Specific Reasons:

Author Emily Newman explains that “Understanding customer needs and wants will enable a company to ask customers additional questions regarding what other products would stoke their interest. Listening attentively clarifies whether the customer would be interested in exploring more options, or if they’ve saturated their buying.” Here are a few practical explanations of the psychological motives behind consumer behavior:

 

1.    Esurance of Survival:

The biggest motivating factor behind consumer spending is the need to ensure survival.  This is why there are three types of products that people will always buy, regardless of the circumstances.  Food, shelter, and clothing.

 

2.    Appetite-Feeding:

Beyond spending money on basic needs, customers also have non-essential wants to fulfill.  If a consumer is buying something that they don’t need, chances are it’s because they’re finding amusement in self-indulgence.

 

3.    Pursuit of Belonging:

When products are branded as icons of popular culture, possessing such products becomes a social ritual.  The mere act of buying popular products can make individuals feel like they’re part of a club or community.

 

4.    Prestige:

When customers want to display affluence, they deliberately go to the trouble of purchasing high-end products.  Conspicuous consumption is a hallmark of elevated social status.

 

5.    Ideological Expression:

Sometimes products become branded as symbols for noble causes.  When this happens, customers seek to possess such symbols in support of popular ideologies.

 

Conclusion:

Getting to the heart of a customer is the first step toward predicting their needs.  And when a company can predict customer needs, it becomes possible to create tailored products.  Providing a unique customer experience is the ultimate way to amplify sales. If you like what you just read from our blog, you’ll love the various informative courses, workshops, and events listed on our websites and social media. Whether you’re interested in personal development, health and wellness, bettering your relationships, or the overall improvement of your business, give us a call at 1 (800) 913-0222 to find out how Richard Martinez can help you break past your daily struggles and start soaring in success.

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