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THE CONSUMER. Part 2: Why People Buy. Why People Buy. ...there are actually lots of reasons. Consumer Behaviour: Why People Buy.

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the consumer


Part 2: Why People Buy

why people buy
Why People Buy

...there are actually lots of reasons...

consumer behaviour why people buy
Consumer Behaviour: Why People Buy

Marketers spend millions of dollars trying to understand why people buy products and services. Sometimes it seems that there is no reason for a purchase, but in reality there is always a reason.


Consumer Behaviour: Why People Buy

Marketers spend millions of dollars trying to understand why people buy products and services. Sometimes it seems that there is no reason for a purchase, but in reality there is always a reason. Many factors are involved in a customers' buying decision, any one of which can become the deciding factor, such as:

Conspicuous consumption

Lavish spending for the purpose of displaying wealth or social status; preference for buying increases with price.


In the U.S., a trend toward larger houses began in the 1950s, with the average size of a home doubling over the next 50 years. People have purchased huge houses even at the expense of the size of their yard, the inability to save funds for retirement, or a greatly increased commute time.

Need a limo? How about a stretch Hummer!


Consumer Behaviour: Why People BuyContinued…

Snob effect (Halo Effect / 360 degree Luxury)

Desire to buy something nobody else has; preference for buying increases with rarity or scarcity.

Snob appeal can create a halo effect as part of a marketing strategy. A halo effect occurs when a company promotes a single product that generates a great deal of attention for being the first, or best, of its kind. An example of a halo product is an ultra-large television display from an electronics manufacturer. Despite its impractical size and unaffordable price tag, such a product can make other, smaller sets from the same manufacturer more desirable to customers who want to buy from the company that is capable of such extreme products. See Panasonic’s 152” $500,000 TV

Snob appeal includes the concept of 360-degree luxury. This refers to the idea that customers who can afford certain luxury goods should have luxury goods elsewhere in their lives. Examples of this are luxury versions of common accessories such as handbags and belts. See Most Expensive Handbags


Consumer Behaviour: Why People BuyContinued…

Bandwagon effect

Desire to buy something everybody else is buying; preference for buying increases with perceived popularity. Could be a positive or negative.

How bad do you want a new iphone?


To enhance their lifestyle or to fulfill two of

Maslow's needs: physiological (food, shelter)

and Safety and Security.


Consumers purchase products because they need

them to survive, such as shoes and medicine.


This is the study of how people interact with

their environment, products are consumed to

enhance their well being, for example air

fresheners, health food, etc.


Consumer Behaviour: Why People BuyContinued…


The study of the thoughts, feelings, and behaviors of group

interaction, especially in a social setting. People want to feel

accepted and loved by their peers and they need to consume

products that will appeal to their chosen groups. Ie Your

friends like to BBM, so you get a Blackberry…

Rational-Purchases are made with logical, thought out reasoning.

Irrational-Products are purchased for foolish or absurd reasons.

Factual-Purchasing products based on researched reports. Are UGGs worth it? Find out here!

Emotional-Purchasing products based on feelings

Create a PPT “kiosk” on one of the reasons why people buy. A PPT KIOSK is a PPT that cycles through a topic automatically (no key presses)

Your KIOSK must have the following features:

- a Title (with entrance and exit animation)

- a Definition (with entrance animation)

- 4 examples of purchases made for your reason with descriptive text

(with entrance animation for each example on same slide)

- The last slide must start with the name of your reason at the centre of the slide and then a collage of images related to your topic built around it one by one until the page is full (minimum 8 images).

- after a few seconds, the PPT should automatically repeat. Example Here

For a mark, save your completed file using the following file name: FirstName_Lastname_PPT_P2.doc

Drag the file into the correct folder (by day and period) into the Drop-Off>ROBINSON folder.

ASSIGNMENT (for Marks)

Part 2: Why People Buy