1.4 How Consumers Make Purchase Decisions
We often hear about how complicated people are and wonder, how in the world could we ever understand something as complex as their processing of information to make a purchase? It seems like rocket science—way too complicated to understand. But it’s not that hard. This is the AIDA model:
The model’s premise is that to generate a product purchase, there must be awareness of your product or service (you need to get the customer’s attention). There is a 100% probability that if a customer doesn’t know your product or service exists, they will not purchase it! They then need to move from awareness to having an interest in the product or service, desire to have it, and finally take action and make the purchase!
There are three processes consumers use to decide on what products or services they buy:
Cognitive Purchases (we have to think hard about it): This typically happens in product categories in which we have no prior experience or for a high-priced item for which you fear making the wrong choice. In this scenario, you research, go to websites, visit stores to see the product or service, read reviews, and stress over it. It’s a long, grueling process that we often just shut down because it is too stressful or time-consuming. As a consumer, we try to avoid these types of purchases.
Responsive Purchases (we heard about it): Creating purchases in this way is the role of marketing. It can happen in many forms—a friend told them about the product or service and recommended it; they saw an advertisement of some sort; they read an article about it; they watched a YouTube video that featured it; somebody mentioned it on Twitter. Creating responsive purchases is where product and brand management play a critical role in generating awareness and desire to purchase.
Reflexive Purchases (we buy it out of habit): Reflexive purchase is what all brands strive for—when the customer only has eyes for you! They don’t even consider alternatives. Consumers like making these purchases as well, as it’s a no-brainer. They trust the provider, trust the brand, receive a consistent experience every time they use it, and feel a sense of self-satisfaction. It’s hard to get a customer to this point. It takes time and a consistent experience to create this bond of trust.