Are you looking to better understand your consumers?
It goes without saying that the factors influencing a purchasing decision will continue to change. This is especially the case in an everchanging economy and with the progression of technology. For example, online shopping has encouraged consumers to focus on different buying factors than they would have a decade ago.
If you want to succeed in your business, it’s crucial to understand your consumers. Of course, you want to understand who your target market is. But, you also want to understand which factors best influence their purchasing decisions.
To help, we’re sharing the seven most crucial factors that influence consumer purchasing decisions. In understanding these factors, you can better align your business model with consumer desire.
1. Price Point
Let’s face it, consumers are naturally motivated by pricing.
It’s important to note that this doesn’t simply mean that consumers desire the most inexpensive price possible. Instead, consumers are looking for value. They want to rest assured that the price they’re paying for a product or service is reflective of the quality.
Some consumers are also willing to pay a higher price in exchange for an elevated level of service. A consumer shopping for new kitchen appliances might be willing to pay more for in-store service rather than shopping online.
With in-store service, the consumer can benefit from the advice and guidance of the staff. In paying slightly more for the same product, the consumer can rest assured that they’re choosing the best product possible.
2. Delivery Options
In today’s society, consumers expect a swift and timely delivery of products.
When we consider that 75% of Americans have shopped online, it’s simple to understand why delivery is such an important factor. When a consumer orders a product online, they anticipate that product to arrive as soon as possible.
When multiple websites are offering that same product, the consumer is likely to choose the product said to arrive the fastest. For some, this might even mean paying an elevated price for a swift and timely delivery.
Consumers also want to rest assured that their package will arrive safely and without damage. This is especially the case when it comes to ordering something large-scale or fragile.
3. Availability of Information
For more complex products, it’s important for that product to have key information available.
This information will help to explain how the product works and outline the features. When a consumer can familiarize themselves with a product, they’re all the more likely to complete the transaction. In gaining a more solid understanding of the product itself, the consumer is better able to develop a sense of trust in the product and the company.
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4. Reviews and Testimonials
It’s safe to say that we live in a world dominated by testimonials.
Whether a consumer is looking to hire a lawyer or invest in a new television, they are likely to read testimonials before making their decision. In fact, one study found that 84% of consumers trust online reviews as much as personal recommendations.
Why is this?
Testimonials help to establish the credibility and reliability of a product or service. When a consumer can read about a past consumer’s positive experience, they’re all the more likely to engage with that business or brand.
When a consumer is debating a purchase, they crave the assurance that they’re making an informed decision. This is especially important in the online world where there is minimal interaction.
5. Place of Origin
If your business sells a physical product, where are these products manufactured?
Are they mass-produced at a factory in China? Or, on the other hand, do you create the products locally and in-store? Each place of origin will dictate what your consumers are willing to spend on the product.
In today’s economy, place of origin and consciousness are important to consumers. In fact, a growing number of consumers are now willing to pay more money for products that are manufactured in a responsible setting.
With this, consumers can rest assured that the employees are treated more fairly. At the same time, these products also typically benefit from less environmental harm.
6. Materials and Consciousness
Today’s consumers are also paying close attention to the materials involved in their products.
A growing number of consumers are interested in materials that are eco-conscious or made from natural materials. In this event, consumers are often willing to pay a higher price than they would for synthetic materials such as polyester.
Of course, this doesn’t mean that consumers have little interest in synthetic materials altogether. Instead, it’s simply to note that consumers are willing to pay different price points depending on the quality of the material.
7. Payment Options
What are the payment options that your product or service offers to your consumers?
In today’s day and age, there are countless forms of payment available. This could be anything from a simple Debit or Credit transaction to something more complex such as Pay Pal or even Cryptocurrencies.
At the end of the day, the more payment options you have available to your consumers the better. Some consumers will also favor using certain payment methods in order to collect points. If your business doesn’t accept this form of payment and your competition does, you’re likely to lose that battle.
Factors That Influence Consumer Purchasing Decisions
How well do you know your consumers?
As a business, it’s crucial to understand the factors that influence consumer purchasing decisions. With this information, you can better serve your clients and ensure the utmost satisfaction.
In today’s day and age, factors such as place of origin and consciousness are important. Consumers are also driven by payment options and timeliness of delivery. As the economy continues to evolve, staying up-to-date with your consumer’s buying decisions is key. The customer is always right at the end of the day so you need to cater to their needs.
Did you find this article on the main factors influencing consumer purchasing decisions to be helpful? Visit the Sales section of our Everything Entrepreneur Blog for more lead generation and selling tips.