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How Buy Choices Are Made

How buying decisions are made

The diagram shown above is an evolution of a diagram I made at Kantar. It is my attempt to summarize as clearly and simply as possible the process by which people choose between brands based on their intuitive and reasoned thinking. I would love to hear your thoughts on good, bad, or indifferent. But first let me outline my thoughts behind the table.

Two ways of thinking

By now, probably everyone in marketing, advertising, and related disciplines has read about the two mindsets: intuitive and deliberate. The intuitive is quick and is triggered in a split second before the conscious mind can figure out what is going on. Conscious deliberations, on the other hand, are often slow, difficult, and arduous. Often presented as separate systems (as above), this is just a convenience to explain two related mindsets.

In order to navigate our complex world quickly and effectively, we use a number of heuristics and intuitive shortcuts with which we can decide what to do in each situation. A need, an opportunity or a mindset triggers the decision-making process and we respond. Provided the context is known, we react automatically without having to think about what to do. (It is important that the context does not have to be directly experienced beforehand, it could just resemble a familiar situation.) However, if the context is disturbed – our favorite brand is not available – or unknown – we have never bought the product category before – we need to think consciously about what to choose.

The intuitive influences The considerations

Both types of thinking play a role in making decisions, but the balance between them shifts due to the strength of the intuitive response. When the intuitive response is strong, the conscious mind either joins the decision or uses that initial response as an anchor for further reflection. Hence, a brand is likely to be selected that presents the obvious solution to a need – the most salient.

When the intuitive response is weak, awareness emerges to figure things out, even though it is not doing more work than it takes to make a final decision. Most likely, his considerations will be based on easily accessible facts, judgments and feelings or, in the age of search, simply enter “Best …” into Google and take it over from there. Both modes are used during the search process so that users can get a satisfactory solution as quickly as possible. It is important that the mode of reflection, although characterized by the intuitive reaction, can override this initial reaction, but this requires effort.

Heuristics are learned

If I understand correctly, heuristics are mental shortcuts based on experience and knowledge. Prejudices are systematic influences on our decision-making that can result from a heuristic or the development of our brain.

Why is this distinction important? Both heuristics and biases influence people’s buying decisions, but I believe the fundamental difference from the marketer’s perspective is that heuristics can be built over time through direct and indirect learning. Brand users have direct experience with the brand. A potential user can learn about (and maybe covet) a brand through occasional exposure: see others how they use it, read online content and reviews, listen to news, chat with friends, and of course, notice its advertisements. Most indirect learning is likely to be passive; Impressions are absorbed with little reflection.

Experience confirms or denies expectations

Obviously, the process doesn’t stop at the point of purchase. As mentioned above, using it brings a direct experience of the brand. This is the acid test. Does the brand meet the expectations created by prior notice and claims during the purchase process? The experience will improve and enhance people’s impressions of the brand, hopefully for the better. It is important that over the course of the experience, the ups and downs and the feeling of people when the time comes to buy again determine how predisposed people are to hold onto the brand.

First impressions anchor future decisions

This framework doesn’t necessarily change our understanding of the role marketing activities play in branding, but it does explain why they are important and how they can influence future buying behavior. By creating a range of positive, motivational, and memorable impressions of the brand marketing activity, it creates an anchor for future decisions, not just for buyers of current categories, but also for buyers who might buy the category in the future. Well done, these activities cause people to choose the brand directly, or if they fail, they notice and are more responsive to their sales activation.

OK, that’s my take on how people make purchasing decisions. My reading makes me think that too many people focus on using behavioral economics when making decisions, and too few see the implications for longer-term brand growth. But what do you think? Please share your thoughts.

Contribution to Branding Strategy Insider by: Nigel Hollis, author of The Global Brand

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