If brands want to understand consumer behaviour, they need to satisfy that behaviour.
We, humans, have what we call “functional needs”, like buying gas for our car so we can go from A to B or buying a burger to satisfy our hunger, but we also have psychosocial needs which can relate to love or even achievement. There are brands such as Nike which sell themselves as winners and their motto is “Just do it”. There are also brands like T-mobile which make you feel belonging and connect with people: “Life is for Sharing”. Brands push themselves to satisfy psychological needs.
So why would anyone buy very expensive products like, for example, a Montblanc Meisterstück pen, which is £320 , instead of this one which is £1,08 (and you have even more variety of colours)?
That’s because you know you can buy the expensive pen, you have succeeded in life to the extent that you can buy it, maybe nobody knows how much the pen was because you can’t even see the brand, but you do and that’s what’s important.
Past experiences and perceptions influence how consumers buy and it includes price, brand name and retailer name. We tend to think that a higher price means better quality and that well-known brands are better than generic brands.
I want you to think about the most recent thing you’ve bought. Why did you buy it? What needs did it meet?
And, finally, how much would you spend on a pen?
Source: Future Learn