In our previous post, we discussed the Buying Decision Process and how brands need to understand it to craft powerful campaignsLinks to an external site.. This time, we will dive deeper into the buyer process to understand what is happening inside our customers’ brains.
Like in Inside Out, a mix of emotions and internal factors come into play when a consumer decides whether to buy a product or, more importantly, which brand to choose. Let us take a look at this complex process and how marketers can influence it, specifically in the need recognition and evaluation steps.
The Actual State vs. the Desired State
The first critical moment occurs during the need recognition step, at the very beginning of the process, where marketers must influence consumers' minds to shift them from their actual state to a desired state.
As defined by WordPress, "Need Recognition is when a consumer perceives a difference between their actual state (which is their perceived current state) and their desired state (which is the perceived state the consumer strives to reach)." In other words, something in your consumer’s daily routine changes, making them want a specific product to satisfy a need.
There are two types of changes: one occurs when the consumer is in their actual state and needs a product, such as when they run out of shampoo and need to go to the grocery store to restock their daily essentials. The other is the desired state, where consumers feel content but are persuaded to believe they need certain products to "improve their lives." For example, even if you have enough shampoo, seeing your favorite actress release a new haircare line that promises shiny, smooth hair might make you feel like you need those products instead.
Marketers must leverage this by guiding consumers toward the desired state for their products—in other words, convincing them that what their brand offers is precisely what they need to be happier.
Compensatory vs. Non-Compensatory
During the evaluation process, when consumers sort through different product options to determine the best fit, two distinct decision-making strategies come into play: compensatory and non-compensatory.
The Nielsen Norman Group, a major leader in research, defines a "non-compensatory decision-making strategy as the process where the consumer eliminates alternatives that do not meet a particular criterion, and a compensatory decision-making strategy where the consumer weighs the positive and negative attributes of the considered alternatives and allows for positive attributes to compensate for the negative ones."
In other words, a non-compensatory decision strategy allows consumers to quickly narrow down their choices by eliminating options that do not meet their criteria. For example, when choosing a hotel at Walt Disney World in Orlando, you have more than 25 resorts to pick from, so you can filter based on preferences such as luxury, room view, or character breakfasts.
Conversely, a compensatory strategy involves consumers weighing pros and cons and making decisions based on this information, often willing to sacrifice some aspects to fulfill others. For instance, if you are staying at Disneyland in California, where there are only three resort options, you might have to compromise on some of your preferences and even consider staying at a non-Disney hotel.
This is why marketers must deeply understand their target audience, including their criteria and possible requirements when considering a product. They must ensure that their audience never hesitates to choose their brand over the competition.
As you can see, many factors influence consumers' decisions on whether or not to buy your products. Therefore, marketers must pay close attention to the buyer decision process. By deeply understanding their consumers and how their brains react to specific stimuli, marketers can create more effective campaigns that lead to successful purchases for their business.
If you have not already, check out our previous post on the buying decision process, and be sure to subscribe to this blog if you want to deepen your marketing knowledge and craft winning campaigns based on your consumers’ needs, wants, and what goes on inside their heads when they see your products. As you can see, we are gradually returning to our analysis of Disney's strategies and will continue exploring them in the upcoming posts. So, grab your Mickey ears and get ready to dive into the strategies behind the sales of one of the most powerful entertainment companies. Have a magical day!
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