Consumption is the primary activity in the economy. It helps in regulating the flow of money. Moreover, it also brings about composite growth and development in the financial structure of a country. It brings about improvement on both the buyers and the sellers’ side. Thereby inducing producers to earn more profits by maximizing their selling options and it also offers the buyers the opportunity of choosing the variety of the product that would best suit their needs, requirements, and desires.
We know that consumers are the kingpin in any market structure. Thier decision is what determines the organizational framework of a financial structure in the economy. Thus whether they incline to buy a product or not is dependent on the inherent qualities that the product offers and the use to which it can be put. However, there are some preconceived notions based. The consumers finally decide to make their consumption decision. Their purchase decision is guide by their ulterior motive to extract the highest amount of pleasure and satisfaction.
Thus there are a few psychological barriers present in the consciousness of the consumer before they make the consumption decision, the majority of which are listed below-
Confirmatory Bias
A Consumer desires to be sure before purchasing the product or consuming a particular service. He or she requires the ratification of the other consumers. Their verifiable claims about the efficiency of the product further solidify their claim that they can make some progress in purchasing the product. For example- a consumer desires to change the brand of the toothpaste he or she is using. Although advertisements by the marketing agencies of the producers of the brand of toothpaste are available 24×7 the consumer would be sure about making the purchase only when it finds that the brand he or she is deciding to consume is verifiable by the claims of the person who has previously used it.
If the consumer finds that someone whom he or she knows has consumed the product and has provided positive reviews about the product, the consumer would be inclined to make the purchase. However, if the consumer finds that the person is giving out negative reviews about the product despite extensive advertisements on Television and other social media platforms, a mental barrier would be created in the minds of the consumers before making the purchase decision. Thus a general sense of biases regarding a positive claim being made about the use of the product guides the consumption decision pattern of the consumer.
Bandwagon Effect
We live in a society where income and economic discrepancies determine the social status of a person. It is one of those menacing social evils which we have adopted from the capitalist countries where people are judged and categorized according to the amount of money they have in their possession. So with more money in their coffers comes the urge to show off and brag about the possession of items that are expensive and difficult to acquire. People at times decide to make consumption decisions based on the perception that to society, they should belong to particular social strata that would garner respect and admiration from the common masses.
Even if they go to the final extent of their economic capability and capacity. This is known as the bandwagon effect and is one of the biggest psychological biases acting in the minds.
For example- Suppose your neighbor owns a brand new car that is trending in the market and has received very positive reviews. It is cost at 10 lac. Although you might not be able to spend that amount on a car. It would go to the maximum extent of your financial capacity to purchase the car to show that you are equal to your neighbor in economic capacity. This tendency to follow trends and do what others do is termed as the bandwagon effect.
No-Risk Bias
Finally, the biases that have the highest impact on the consumer’s subconscious psychological being before he or she decides to pursue a consumption decision is the deciding factor of avoiding risks in buying products and services. Every consumer is bent upon being risk-averse and wants to ensure safe transactions whereby the goods they purchase and the services they consume do not cause harm to them in any form.
Thus their motives guides the maxim to make safe and sound consumption decisions without pursuing any type of unnecessary risks and problems. For example- when it discovers that magnesium was found in Nestle Maggi which is one of the highest-selling food products in India. People aimed to boycott Maggie Noodles and shift their consumption preference to other brands that would be a much safer option.
Conclusion
Thus from the above discussion, it is clear that some psychological barriers and biased mental makeup decide the consumption pattern of a consumer in the market.
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